Property Go - July 2015 by Property Go

Vol 0102

Perthâ&#x20AC;&#x2122;s ultimate property resource

PROPERTY

T H

FINANCE

Property

MAGAZINE

CONVEYANCING

BUILDING

RENOVATING

he steps to create a smooth settlement.

hite lable loans, whats that you say?

ow big, is BIG... In the hight stakes, who has the biggest!

propertyGo.net

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PROPERTY GO WELCOME At a recent Property Go conference held in Bali the members discussed ways in which the various businesses involved could deliver value in a collaborative effort. New progressive technologies and practices implemented by the represented groups were shared and deliberated. All were in agreement that there was an advantage in current resources, by working together for a mutual benefit, to ensure successful outcomes.

THE PURPOSE The purpose of Property Go is to bring a balanced perspective across a broad range of property related aspects that form part of the fantastic life we live in this incredible place we call our home. There are a multitude of small to medium businessâ&#x20AC;&#x2122;s that exist, that may not have come to our attention and can help and assist us to manage, create and improve our everyday lives, Property Go brings a slice of these into a single publication for your perusal.

FANTASTIC PROPERTIES Property Go is dedicated to providing and offering some outstanding Real Estate opportunities, the details and contact information is contained and displayed in the following pages.

ADVERTISING SPACE If you are a Real Estate agent or a property related business seeking exposure in Property Go Magazine enquires can be made to emagazine@propertygo.net

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Smooth Sailing at Settlement

Just

out

CoreLogic RP Data Hedonic Home Value Index, July 2015 Results Released: Monday, August 3, 2015

Australian dwellings valued at $6 trillion after capital city home values surge 2.8% higher in July Melbourne and Sydney continued to set a rapid pace for capital gains in July, pushing the CoreLogic RP Data Home Value Index 2.8% higher over the month and 11.1% higher over the past year. The two tiered growth evident across Australia’s housing markets continued through July with Sydney and Melbourne continuing as the two capital cities driving home values higher. The growth, together with new stock additions to the market, was enough to push the aggregated national value of all dwellings past the $6 trillion mark. To read the full story go to:

http://www.corelogic.com. au/resources/pdf/indices/ indices-release/2015-08-03monthly-indices.pdf

fter the time spent looking for a new home, or having your home on the market, settlement can seem like such a small step. It’s simple really, the title of the property changes hands and it’s all sorted. Easy! Nothing can go wrong! Unfortunately there are a few things that can derail or delay the settlement process. We look at some of the things you need to do before settlement to ensure everything goes smoothly.

he first step is to give yourself plenty of time. It’s understandable that you want to settle as soon as possible, but you need time: • for the lender to approve a loan application and deal with all the relevant paperwork • to carry out any inspections, such as building and pest, and act on the results • for any enquiries to be made with local authorities and Government departments.

ettlement sounds simple, but there is a lot of work going on behind the scenes and delays can occur at any step along the way. If you or your bank can’t meet the settlement date listed on the Offer and Acceptance contract you might have

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to pay penalty fees to the other party. And if you have already booked movers and arranged to move out of your previous home, you may have to quickly make other arrangements.

e recommend allowing at least five to six weeks for settlement. It is a good idea to discuss your situation with your settlement agent as all settlements are different and some may need extra time. Arrange your home insurance so that your new home is covered from the settlement date. You may not be moving in straight away, but the property becomes yours at settlement. If there is a fire, storm or accident after this date you will bear the cost of repairs, even if you are not living there.

heck all the paperwork is correct as little errors can cause costly delays. You need to make sure that all the details on the contract are correct - check the spelling of names and addresses in particular. You must use your full legal name. You also need to make sure that the right person/people are on the contract. It is very common for a husband or wife to make an offer without their partner present and not put both names on the contract, thinking their partner can be

added later. Unfortunately it’s not that simple. If the ultimate purchaser on the transfer varies from the name on the Offer and Acceptance, the Office of State Revenue may view this as an “on sale” and you may be liable for additional stamp duty.

lso, there are many different ways a person can buy or sell property, for example, by Power of Attorney, under a Company, as a trustee for a Trust, or as Executors of a Will, and you need to make sure that the person signing the Offer and Acceptance contract or settlement documents has the authority to do so. Otherwise the contract may be invalid and unenforceable. If you are in this situation, mention it to your settlement agent so they can make sure they have copies of the relevant documents to ensure the paperwork is correct.

arry out inspections well before settlement so that both parties have time to address any issues. If you don’t do any inspections and notice problems after settlement it can be very difficult to get the previous owner to fix them.

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R ENTAL P ROPERTY D EDUCTIONS

hen you make your offer you can insert special conditions about the types of inspections to be carried out. You will need to word your conditions carefully and indicate what will happen if there are any major problems, for example, if a pest inspection finds active white ants, the seller will arrange for the property to be sprayed by a licensed pest controller.

uilding inspections are intended to satisfy the buyer that the property is structurally sound and free from major defects. They generally only look at the building, so if the property has retaining walls for example, and you want these to be inspected, you will have to request that this be carried out. If a structural issue is found the seller must be given the opportunity to rectify it. In some cases this can take time and may delay settlement. If the seller is unable or unwilling to fix the problem, the buyer may cancel the contract or renegotiate the price. Buyers need to be aware of the difference between cosmetic issues and structural issues. Missing roof trusses are a structural issue, cracked plaster, broken windows or hot water systems that don’t work, are not – however, these may be addressed by a pre-settlement inspection.

uilding inspections may indicate damage by white ants, but won’t say if termites are still active. For this you need a separate pest inspection. Pre-settlement inspections allow the buyer to familiarise themselves with the property and check that everything is working properly. A pre-settlement inspection should be carried out at least a week before settlement to give the seller time to fix any problems. This is where you check the airconditioning, reticulation, hot water system, power points, taps, oven, lights, doors, etc. Again it is worth noting that certain things may need to be fixed, while others, like a cracked bathroom tile, may not.

For more information contact Stirling Conveyancing Services on 08 6160 6600. In the next issue of Property Go we will look at some of more technical details that can derail your settlement.

To help rental property owners identify what costs are deductible (and when to deduct them) we have compiled the following lists to assist with your record keeping. Expenses immediately deductible: • • • • • • • • • • • •

advertising for tenants. bank charges. body corporate fees and charges. cleaning. council rates. electricity and gas. gardening and lawn mowing. in-house audio/video service charges. insurance (building, contents, public liability). interest on loans. land tax. lease document expenses (preparation, registration, • stamp duty). • legal expenses (excluding acquisition costs and borrowing costs).

o help rental property owners identify what costs are deductible (and when) we have compiled the following lists to assist with your record keeping. • • • • • • • • •

mortgage discharge expenses. pest control. property agent fees. property agent fees and commissions. quantity surveyor’s fees. repairs and maintenance. secretarial and bookkeeping fees. security patrol fees. servicing costs (i.e. servicing a water heater).

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• • • •

stationary and postage. telephone calls and rental. tax-related expenses. travel and car expenses, inspection, rent collection, maintenance. • water charges.

xpenses deductible over a number of years There are three types of expenses you can incur for your rental property that can be claimed over a number of income years: • loan set up fees. • plant and equipment purchases (such as curtains). • Capital works deductions/building depreciation.

xpenses that are not deductible:

• acquisition and disposal costs of the property like stamp duty and settlement fees. • expenses not actually incurred by you (i.e. water or electricity charges used by your tenants). • the cost of your own labour in maintaining the property. • expenses that are not related to the rental of a property, such as expenses connected to your own use of a holiday home that you rent out for part of the year.

estcourt is a mid-sized practice of accountants and business consultants, centrally located in East Perth. We specialise in providing financial and strategic advice to private business.

t Westcourt, we take the time to get to know our clients so that we can recommend the best solutions for their business. Our team has an indepth knowledge of the accounting regulations, financial strategies and tax laws relating to private business. This allows us to provide our clients with first-rate advice and superior solutions. Contact us today: Level 1 45 Royal Street East Perth WA 6004 T 08 9221 8811 F 08 9223 8805 westcourt.com.au Craig Seddon Director D 08 9223 8871 M 0414 424 969 craig.seddon@westcourt.com.au Ross Forrester Director D 08 9223 8831 M 0412 570 692 ross.forrester@westcourt.com.au 7

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new ELIZABETH QUAY

Each of the two 82 tonne bridge arches was built in three separate pieces before being welded and painted onsite and lastly lifted into place. The final arch lift marked a significant milestone for those involved with the delivery of the bridge including designers Arup and delivery partners Structural Systems, Decmil and Hawkins Civil. MRA Chief Executive Officer, Kieran Kinsella said that the bridge would frame our city’s skyline for generations to come. “It is exciting to see another construction milestone realised for the project. The new bridge provides a wonderful architectural focal point for the city and most importantly reconnects the popular recreational route around the Swan River.” In the coming weeks a total of thirteen bridge deck pieces will be assembled before the laying of timber slats commences onsite. With the public realm due to open at the end of the year (2015) it wont be long until pedestrians, cyclists and even segway riders will be able to make use of the new riverfront route.

INE’S BIGGER THAN YO U R S … . .

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COMMERCIAL PROPERTY SCENE

hen completed in 2019, the 100 storey Australia 108 apartment tower at Southbank in Melbourne will be among the highest buildings in Australia. Oz 108 will be more than 300 metres high and will eclipse the Q1 tower on the Gold Coast as Australia’s highest residential apartment tower. Sydney is joining the race to the clouds with the 90 storey, 336 metre high Aspire Tower in Parramatta, Western Sydney which is also due for completion in 2019.

ompetition in global “bigness” is a serious business. The Council of Tall Buildings & Urban Habitat is a Chicago based not for profit organisation that makes the rules on how big your big thing really is. The CTBUH website says they are also a serious body of professionals focused on “the inception, design, construction, and operation of

tall buildings and future cities”. The Skyscraper Centre website hosts the global tall building database of the CTBUH which compares big, bigger and biggest buildings. The CTBUH can confirm if the really big thing you have built is in fact the biggest thing. That could depend on far off the ground the highest habitable floor in your thing is or how high it is from ground to the top of its mast. It could depend on how far it is from the lowest pedestrian entry to the “top of the building” or its “roof height”. Confused? Example: the One World Trade Centre tower in New York City is in fact 546 metres high (to the tip) and it is also 417 metres high (to the roof) and it is also 386 metres high (to the top floor).

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COMMERCIAL PROPERTY SCENE

ne thing is certain. As soon as you finish building your biggest thing and the CTBUH has confirmed that your big thing really is the biggest of its kind, someone else will already be planning to go higher. It appears that audacious developers continue to be motivated by the most basic “mine’s bigger than yours” fixation. Structural engineers obviously just keep thinking that they go for that little bit extra in height (just before gravity may finally win). Most buyers of apartments in mega-towers probably all just want the penthouse. They also want to buy the dream.

“C

loud Breaking Design”. “The Sky Is Yours”. “Streetscape Meets Cloudscape”. How can you resist?

Where do I sign? When can I move in? The penthouse is how much? I have wondered if a view from Level 99 could be that much better than a view from Level 66. Once you get over 40 or 50 floors, any view is going to be spectacular. The buyer of the penthouse on Level 100 at Australia 108 paid $25 Million for the privilege and will be able to tell me. If you miss out on the penthouse or cannot afford it, an option may be to buy a mediocre apartment on Level 40 and work your way up a mega-tower decade by decade as your wealth and status grows until you finally do make it to the penthouse – the dream realised.

ustralia will have Oz 108 in Southbank and the Aspire Tower in Parramatta at around 300 metres high. The

PROPERTY GO 78 storey Q1 Tower (“Queensland No.1”) on the Gold Coast was the highest residential apartment tower in the Southern Hemisphere from 2005 to 2012 when towers in Dubai stole our big building crown.

ustralia’s tallest man-made structure was the Omega Tower – a 430 metre high radio navigation tower near Darriman in Gippsland, Victoria. It was dismantled earlier this year and that left another radio transmitter tower at the Harold Holt Navel Communications Station in Exmouth WA as our biggest thing (at around 390 metres high).

• • • • • •

So how do we compare? How big is our biggest? How we are placed in the Global Big Boy Stakes?

ere are some really BIG facts to assist in your size assessment:

Biggest - Burj Kalifa in Dubai (826 metres high and 163 floors). Biggest Under Construction – Kingdom Tower in Jeddah (1 kilometre high and 167 floors). Six of the 10 highest buildings on the planet are in the Asia region. Two are in the Middle East and two in the USA. Six of the 10 highest building on the planet currently under construction are in China The Burj is about twice as high as Australia’s highest man-made structure (the radio mast) Perth’s highest office tower is Central Park at 249 metres and 52 floors. (Brookfield Place just missed out on being the highest at 235 metres).

Are we feeling a little bit limp by now, boys? Feeling quite challenged in the erection stakes? Wondering whether us Aussies really need to get onto steroids and lift our game - fly with the eagles? Don’t worry. Be happy. Relax.

ake comfort in the fact that the developers, engineers and buyers of the mega tall - towers may be interested in really big things but are obviously not that interested in some of the big but basic questions about their mega buildings. Are humans really designed to exist in climate controlled, glass display cabinets 300 metres above solid ground? Who has the skills to socially and technically manage a vertical village accommodating a community of thousands for decades and decades – we can’t seem to get that bit right when we are living on or close to the ground. Does height improve things? What extreme challenges is Mother Nature likely to throw at the cloud dwellers over half a century?

ow exactly does one dismantle 1000 plus metres of glass and concrete that is sticking out of the ground when it has reached its Use-By Date without disturbing the neighbours? So, while we may marvel at the capacity of architects and engineers to conceive, design and realise the dream of living in the clouds, I think I prefer “little Perth”. I prefer to live in one of the world’s most liveable (low rise) cities. We will possibly never have to deal with these big questions about these big things. There is no urgency to join the race up. The sky can be theirs. References:

http://www.ctbuh.org/ Council on Tall Buildings and Urban Habitat website http://www.skyscrapercenter.com/countries The Skyscraper Centre

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Where there’s a will there’s a way..... The Willcaft way

hy do property owners need a Will?

An article from Willcraft on Wills and Estate planning By Sharon Hunt and Colin Chapman Buying a property is in many cases the single biggest purchase a person or couple will make. It is often the largest asset in a deceased person’s estate.

hether purchased as a family home or as an investment property it is vital that the asset is protected in the event of the owners, or part owners death or incapacitation. SOLE OWNERSHIP: • When a sole owner of a property dies without leaving a Will the complications and distress can have an even greater impact. • The death may leave the property without any named beneficiary or person properly authorised 12

(e.g. an executor) to immediately dispose of or manage the property. • There may also be a need to allow a dependent relative a right to reside in some instances JOINT TENANCY: • If one party of a joint tenancy ownership dies, the surviving owner will automatically inherit the property by right and have complete control of the property • They may dispose of the property or gift the property to whoever they choose thus the potential to disinherit children from the first relationship (The first deceased may have wished certain people to benefit from their share) TENANTS IN COMMON: • If one party of tenants in common ownership dies, the surviving owners will retain their own shares in the property however the deceased’s share

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A COMMON ISSUE:

Too many Western Australians do not have a valid will

financially disadvantaged. WITH A WILL: • The benefits of having a Will are many, most importantly, the wishes of the deceased property owner are well documented • The appointed executor is able to distribute the estate and in particular the property. • Right planning in the writing of a Will to dispose of property is the key to the Will makers’ wishes and the security of the beneficiaries and family members. SUMMARY: If you are a property owner, you should have a Will in order to decide who are to be the beneficiaries of your property or share of a property.

illcraft Estate Planning specialise in the area of helping property owners to ensure the right protection is in place for both their family and personal needs as well as those of their dependents and beneficiaries. If making a Will is something you have been ‘meaning to get round to’ take ACTION today! Call Sharon on 0447 188 805 Call Colin on 0429 926 964 The Willcraft team at HQ on 9368 1337 Email: team@willcraft.com.au Website: www.willcraft.com.au

may not have any appointed beneficiaries leaving the others uncertain as to its disposal. • If a Will is in place then the co-owners can continue to manage the property until the beneficiaries under the Will has the share transferred to them or funds are made available to distribute the value of the share. WITHOUT A WILL: • Uncertainty prevails on who should inherit the property and difficulties can arise. • Long delays can occur with the disposal of and the distribution of the property if applicable • A near relative, if available and capable, would have to apply to the local Supreme Court for letters of administration to manage the property and the rest of the estate • During that period when there is no direction, the family and co-owners may be 13

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A ‘white label’ loan?

‘W

hite label loan’ is a term that is becoming more common in the mortgage industry. Still, for those who may not have come across white label loans before, the concept of what a white label loan is and how they work can be confusing. A white label loan is essentially a home-branded loan, much like the home-branded products found in supermarket aisles. White label loans deliver many of the same great features as bank-branded home loans at sharply competitive rates for customers. They also offer the customer something unique that customers can’t get through any bank or any broker. Where white label loans are available to brokers, customers will associate that white label loan with those brokers. That can be a powerful tool to build client relationships. It’s this ‘best of both worlds’ approach which has seen white label loans grow in the market for brokered loans.

oancom has access to a broad panel of lender products including the PLAN Lending range of white label loans. Featuring sharply priced loan products, PLAN Lending products offer customers many features they need in a home loan, without the hassle of having to pay for features they don’t need.

Property Go would like to acknowledge and thank PLAN Lending for their support and assistance in making the recent Bali Conference a great success. PLAN Lending are one of the market leaders and winners of Better Business Award 2015, and also have Plan’s Business Development Manager of the year winner Ryan Healy at the helm. With customer service a priority in all departments it is a pleasure to be able to work with the Plan Lending team.

PLAN Lending products give customers the option to access lower rates if they provide a larger deposit or opt to fix up to 50% of their loan. There are low-doc and interest-only options available, and customers can split their facilities up to four times at no additional cost.

part from the sharp interest rates PLAN Lending offers, there are few upfront fees on PLAN Lending loans: there are no upfront application, valuation or legal fees. At the same time, all the important features like ATM access through the rediATM network, electronic redraw and online account access are available to customers at no charge*.

hile you might think that lower costs could mean reduced customer service, this is not the case with PLAN Lending. PLAN Lending borrowers have access to a post-settlement customer care team in Australia over the phone 8am – 7pm Monday to Friday, while brokers are

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assisted by lending and scenarios teams who help to process and troubleshoot customer applications every step of the way.

est of all, PLAN Lending loans are funded by the Advantedge Financial Services residential loan program, a member of the National Australia Bank Limited (NAB) Group. Advantedge Financial Services was voted the Wholesale Lender of the Year at The Australian Lending Awards 2011 and 2012. .So, PLAN Lending customers get personalised service with the comfort of dealing with a market leading funder.

here are a lot of good reasons for you to consider a white label loan. Combining low rates and fees with all the essential features and the flexibility for you to choose the options that suit your situation, white label loans truly offer a compelling alternative to your traditional branded home loan. Itâ&#x20AC;&#x2122;s quality lending made simple. For more information on what PLAN Lending can offer you, speak to your Loancom broker, on: 08 9386 9211 - or see the Loancom contact details on the inside back pages of this magazine. Disclaimer: *Loan terms provide for fees and charges to be introduced and varied from time to time. PLAN Lending Pty Ltd ACN 120 569 968 is a credit representative (No. 392524) of Advantedge Financial Services Pty Ltd (Advantedge) ACN 130 012 930 Australian Credit Licence 391202. PLAN Lending distributes loans funded by AFSH Nominees Pty Ltd ACN 143 937 437 Australian Credit Licence 391192 and managed by Advantedge under the Advantedge Residential Loan Program. Each entity is a member of the National Australia Bank (NAB) Group. NAB does not guarantee the obligations of its subsidiaries. When giving credit assistance relating to PLAN Lending loan products to customers, please ensure that the products are suitable for your customersâ&#x20AC;&#x2122; requirements, objectives and financial situation.

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inspired living How to be tax smart

•

The low down on the Federal Budget 2015

•

WINTER 2015

Paint it up

FAST FACELIFT

o: nce N

3855

it Lice

n Cred

ralia

Aust

•

Read. Watch. Listen

Welcome to the Loancom team:

Welcome

Brad Hetherington

Managing Director Mob: 0413 741 044 brad@loancom.com.au Cred.Rep.No: 394939

Vicki Dick

Senior Finance Consultant Mob: 0420 981 732 vicki@loancom.com.au Cred.Rep.No: 386904

Lesley Blackburn

Six ways to add value to your property Whether you’re looking to sell or upgrade, there are a few sure-fire ways to add value to your property with some clever cosmetics. Here are our best tips:

A fresh lick of paint One of the quickest and easiest ways to give your home a new look and coordinated interior or exterior is a fresh coat of paint. Painting can be relatively inexpensive, whether you decide to do it yourself or hire professionals. See our colour forecast for this season’s latest trends.

Update your fittings One of the first things buyers tend to look at are the doors and cupboards, lights, locks, curtains and blinds. Make sure these fittings are all functional, and consider upgrading any old or mismatched fittings.

Kitchen refresh Redoing an entire kitchen can be expensive but the kitchen is one of the most important rooms in a home. Many buyers prefer an open-style kitchen so if you have a traditional closed-room kitchen you may want to consider removing a wall. If you’re not looking to make structural changes, you can replace benchtops, sinks or even cupboard fittings as a quick, inexpensive way to spruce up your kitchen.

Senior Finance Consultant Mob: 0417 965 654 lesley@loancom.com.au Cred.Rep.No: 447369

Buff your bathroom Everyone likes a sparkling bathroom, so pay close attention to cracked tiles, worn or mouldy seals and leaking taps. Like kitchens, bathrooms should also be stylish, modern and functional. Replacing broken towel racks or dripping shower heads can make a big difference, while new mirrors and lighting can be a great finishing touch to make your bathroom feel more spacious.

Add a bedroom The three major factors that drive a property’s price are the location, land size and number of bedrooms. While you may not be able to change the first two, adding a bedroom can make a significant change in the value of your property. Make sure you speak with an architect for this sort of renovation and don’t forget you’ll need council approval for your plans.

The great outdoors Whether you want to get rid of the pool and build a granny flat, or you simply want to turn a small balcony area into an outdoor entertaining area with a barbecue and herb garden, there are endless possibilities for your extra outdoor space. Before you start any renovations, think about your budget. Speak to us to understand your financing options and needs. We’re passionate about helping you realise more value through your property. Give me a call today for more resources and insights.

Rob Waters

Senior Finance Consultant Mob: 0410 034 090 rob@loancom.com.au Cred.Rep.No: 368352

Greg Beck

Senior Finance Consultant Mob: 0417 095 724 greg@loancom.com.au Cred.Rep.No: 399971

OPENING UP YOUR KITCHEN TO THE FAMILY LIVING AREA IS A POPULAR CHOICE WITH BUYERS

Steve Greenwood

Senior Finance Consultant Asset and Commercial Mob: 0448 531 345 steve@loancom.com.au Cred.Rep.No:469255

We can help you • • • • •

Get a home loan Reassess your current loan Refinance you existing loan Find a commercial or business loan Consolidate debt and free up equity

PROPERTY GO 2

WINTER 2015

How to be tax smart It’s that time of year again! Don’t let your tax return get you down – there are lots of clever ways to save money on your tax bill. Find an accountant. Accountants can have a better understanding of specific tax laws to make sure you get the best return possible. While you may have to pay for an accountant’s time, you can then claim the fees on next year’s tax bill. Keep a car log book. If you use your car for work, you may be able to claim thousands in deductions. So keep receipts for expenses like petrol and servicing, and keep a log book for just 12 weeks a year. Have you worked at home this year? Even if you’re not self-employed, you may be able to claim a proportion of your home expenses if you’re regularly taking extra work home. Claimable expenses may include internet and utilities, and depreciation of any furniture used. This is general information only. It does not consider your personal situation. Please consult your accountant for professional advice on your personal situation or speak to your taxation adviser to see if any of the above tips would be suitable for you. Call me if you feel you need more support in this area and would like to be connected with an accountant or tax adviser.

OWN AN INVESTMENT PROPERTY? HERE’S WHAT YOU MAY BE ABLE TO CLAIM Great news – there’s a lot you can claim when it comes to your investment property– but make sure you check with your accountant first. Some expenses may include: • • • • • • • • • • • • • •

Property management costs Council rates Water charges Mortgage interest Repairs and maintenance Pest control Cleaning fees Legal fees Depreciation (and related costs, e.g. getting a depreciation schedule) Rental property costs (e.g. running advertisements) Borrowing expenses (for the first five years) Strata fees Gardening costs Insurance

weeks

MAINTAIN A CAR LOG BOOK TO HELP CLAIM POSSIBLE WORK RELATED TAX DEDUCTIONS

THE LOW DOWN ON THE FEDERAL BUDGET 2015 There’s so much written about the Federal Budget, but what does it mean for you as an individual? Some significant changes were outlined that will impact families, retirees and business owners – here are the top seven: • The company tax rate for small businesses with turnover of less than $2 million will be reduced by 1.5% to 28.5%. These small businesses will also be able to claim an immediate tax deduction for each and every item they purchase up to $20,000. • Unincorporated small businesses will receive a 5% tax discount; • Increased childcare subsidies will be available to many lower income young families. The table below explains how this will work.

• Changes to the pension assets test will be a boost for retirees with less money, however, higher net worth retirees may still qualify for some entitlements. • It will no longer be possible to claim both the full Government and employer provided parental leave payments; • Watch out online! You’ll have to pay GST on digital products and services from offshore businesses from 1 July 2017. • Great news for farmers – expenses for fencing and water facilities will be fully deductible. The great news is that negative gearing was untouched in this budget. If you’d like to talk about an investment home loan, give me a call.

• Families that don’t vaccinate their kids will miss out on childcare subsidies and family benefits.

Annual family income1

Subsidy per child

Cap

Up to $65,000

85% of fee paid

n/a

$65,000 - $170,000

Will taper gradually from 85% down to 50%

n/a

$170,000 - $185,000

50% of fee paid

n/a

Over $185,000

50% of fee paid

$10,000 per annum

www.pm.gov.au/media/2015-05-10/jobs-family-childcare-package-delivers-choice-families

PROPERTY GO WINTER 2015

PAINT IT UP

Read. Watch. Listen.

Watching paint dry can be more exciting than you think – if you’re on trend.

pattern and contrast, inviting your mind to rest and be silent.

Here’s a range of colour forecasts for 2015 from those in the know.

Modhaus is based on Memphis design of the 1980’s, with contrasting colour blocks spliced between graphic patterns, often in black and white, played against geometric shapes that repeat to create a sense of order, balancing out the colour.

Resene Paints says trends have come around to perennial favourites – deep blue reds, the striking tone of black and near black, the soothing restfulness of duck egg blue and greyed blues and the bold pops of orange and yellow to add a touch of upbeat liveliness. (See resene.com.au for full colour forecast)

Earthwerks is a palette drawn from greens and mineral hues creating spaces where mimicked or real nature blends seamlessly with future interiors.

Sherwin Williams is forecasting four key trends.

(See dulux.com.au.com for full colour forecast)

Chrysalis: Looking to the earth and sky for inspiration with colours that create an oasis.

Dunn Edwards’ colour palettes for 2015 include rich, oil-paint canvas colours and deep, jewel tones reminiscent of old masters paintings to pastel-influenced post-war hues, providing backdrop to 1950’s-influenced design. Bright pops of colour weave story lines of global travel and the best of science and technology.

Voyage: From space tourism to undersea resorts, we look to beyond to find colours that are supernatural and magical. Buoyant: Bright florals, green spaces, urban environments define the colour in this palette. Unrestrained: From bold, ethnic-inspired colours, designs and crafts to the Bohemian lifestyle. (See sherwin-williams.com for full colour forecast) Dulux is focusing on four palettes. Wildland colours showing contrast of light and dark. Silentshift’s soft colour palette allows you to create spaces in which there is minimal

It’s time to broaden your horizons – why not try a new book, TV show or album?

A surprising but well deserved inclusion on the 2014 Man Booker Prize short list was Karen Joy Fowler’s We Are All Completely Beside Ourselves – a profound, compelling and witty view of what makes a family. For fans of Gone Girl, pick up author Gillian Flynn’s earlier work – Dark Places – which is being adapted for film this year. For an unparalleled insight into the personal impact of war, Chris Kyle’s American Sniper is an unforgettable read, lifting the lid on his battlefield experiences during the Iraq war.

If you’re ready to lose yourself in a historical fantasy, Outlander (SoHo) is a sure bet. The show stars Caitriona Balfe as a World War II combat nurse who travels back in time to the 1743 Scottish civil war.

(See dunnedwards.com for full colour forecast) Benjamin Moore’s colour of the year is Guilford Green. It’s a neutral that’s natural. A silvery green that works with everything. Go monochromatic. It’s what feels right, right now. Try warm, cool, dark and light layers of the same hue. It’s one chromatic concept, gracefully flowing from room to room. (See benjaminmoore.com for full colour forecast)

ETHNIC-INSPIRED PALETTES TO BOLD GEOMETRIC BLOCKS...RED IS SUPER HOT

For lovers of English history, the TV adaptation of Hilary Mantel’s Wolf Hall (BBC First) premiered in April. Set in the court of Henry VIII, it focuses on the intrigues and relationships of political adviser Thomas Cromwell. And if you’re in the mood for a laugh, check out the fourth season of Veep (Showcase), the hilarious political satire starring Seinfeld alumnus Julia Louis-Dreyfus as the scheming Vice President of the United States.

The most listened-to podcast in history, Serial is a multi-episode investigation of a true crime – the alleged murder of teenager Hae Min Lee in 1999 by classmate and ex-boyfriend, Adnan Syed. Host Sarah Koenig recreates the crime and talks to witnesses, including Adnan himself. Full of dramatic twists and turns, theories and conspiracies, the podcast will keep you guessing to the very end. Visit serialpodcast.org to have a listen.

PROPERTY GO 4

WINTER 2015

STEADY AS SHE GOES It’s important to understand what’s driving the Australian economy – especially when you’re a homeowner, property investor or hopeful first homebuyer. The last year has been a steady one for the Australian economy. It hasn’t fired up – but it hasn’t slowed dangerously, which is good news.1 NAB lowered its overall growth forecast for FY2015/16 to 3% in March (from 3.2%). Why? Weaker business investment, a slightly higher unemployment rate, and weak domestic consumption mean slower overall growth.1

House prices and investment With so much data available on how national and local housing markets are faring, it’s not hard to stay informed on how property values are developing. According to CoreLogic RP Data, Capital city dwelling values rose by 0.3% in

0.3

CAPITAL CITY DWELLING VALUES ROSE BY 0.3% IN FEBRUARY3

February – that brings overall growth to 8.3% in the 12 months to February 2015.2 Tim Lawless, CoreLogic RP Data’s head of research, says we might not see the lower interest rate environment stimulate the housing market as much as in the past. “Weaker jobs growth, higher unemployment, declining affordability, low rental yields and political uncertainty are all factors that could dent consumer confidence,” he points out.3 Sydney and Melbourne are still the strongest markets across Australia, with yearly growth up 13.7% and 7.4% respectively by the end of February 2015.4 The $400,000-$600,000 price bracket accounts for the largest proportion of both house and unit sales in 2014. Hobart remains the most affordable capital city for housing, as the only capital with over 5% of house sales below $200,000. In contrast, almost one third (31.6%) of all house sales were over $1 million.5

Housing investment and building approvals continue to remain steadily strong, despite attempts to tighten foreign investment rules. NAB expects to see similar or stronger growth in dwelling investment over the next year.6 We’re always happy to point you towards the latest research and data on the economy and housing market or if you are interested in obtaining an updated valuation on your property, touch base today. NAB Business research and Insights, Australia & The World on Two Pages, March 2015 www.corelogic.com.au/media-release/growth-trendcontinues-with-capital-city-dwelling-values-rising-03-in-february 3 CoreLogic RP Data Home Value Index, 2 March 2015 4 CoreLogic RP Data Annual house and unit sales year to December 2014, February 2015 5 CoreLogic RP Data Property Pulse Market Update, February 2015 6 NAB Business Research & Insights, 30 March 2015, Australian Markets Weekly 1

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PROPERTY GO

Experience. Integrity. Communication. Our staff at Stirling Conveyancing Services have over 60 yearsâ&#x20AC;&#x2122; combined experience in conveyancing and we have built our reputation on creating lasting professional relationships with clients and other key players in the industry. Our combined wealth of local knowledge and broad range of expertise enables us to serve existing clients and provide new customers with the finest advice and services available. Stirling Conveyancing Services oversees all related conveyancing matters for the sale, purchase and transfer of land and property ownership, whether it be a simple or complex transaction. Our integrity, level of communication and reassurance that you are dealing with professionals, sets Stirling Conveyancing Services apart from our competitors. Knowing that all the financial matters of property settlement are in safe and stable hands leaves clients with the free time and peace of mind to concentrate on the things that really matter when buying or selling property â&#x20AC;&#x201C; like making a house a home or spending more time with the people who matter most. Please make a note of our address and contact details below and be sure to nominate Stirling Conveyancing Services when undertaking your next property transaction. We look forward to serving you in the future.

Tony Reeves & Andrew Dodd

First Floor 141 Stirling Highway Nedlands WA 6009 PO Box 1015 Nedlands WA 6909 T (08) 6160 6600 F (08) 6160 6699 E reception@stirlingcs.com.au W stirlingcs.com.au