September 2009

Property investors - still the smartest guys in the room

As the recent global financial crisis has shown, many of the world’s most senior investment and banking types have feet
of clay. These hidden faults have seen the collapse, rescue or restructure of dozens of formerly gigantic and powerful
investment banks including well known names like Lehman Brothers, Bear Stearns and to a lesser extent Morgan Stanley
and Goldman Sachs.

So why does the relatively humble Add value and keep control
Australian residential property investor
When I buy shares in BHP Billiton (fine
continue to end up at the top of the
company that it is) I have zero ability to
investment heap?
change the way they do business.
Investment income When I buy a unit or house I know
exactly what I have to do to increase
What a market! The continuation of
both its rental value and ultimately its
quality rental yields in the 5 - 6% bracket
resale value.
is nothing short of sensational. All of
Australia’s major capital cities have Location
multiple suburbs yielding from 5% all the
There are libraries full of data about
way up to an average of 8.6% in
each and every post code in Australia.
Darlington, NSW.
You have access to council, state and ….Angela wishes all dad's
Cost of borrowings federal government data that may a happy fathers' day
impact the value of your investment.
With 5 year investor mortgage loans
You also know how much each post
available at around 7% and with rate
code averages in both rental yield and
rises being telegraphed pretty clearly
capital growth.
by the Reserve Bank, there is a clear
cut path to locking in costs for the next Although we seem to be heading
market cycle. towards economic recovery faster than
everyone expected, some market
Demand
commentators are still predicting rough
Continuing population growth, weather in the next few years as many
increases in immigration, first home corporate and sovereign debt issues
buyer subsidies, historically low have yet to be resolved.
mortgage rates, state government
Either way just keep quietly investing
stamp duty packages and continuing
in quality residential property. You’ll
stock shortages say it all really.
be richer for the experience.
The simplest law of economics states
that when demand exceeds supply
prices will increase.

Brain booster
The dog named Jam is heavier than the dog named Jelly. Copper weighs more than Brandy but less than Pumpkin.
Brandy weighs more than Jelly. Pumpkin weighs less than Jam. List the dogs in the order of their weights, starting with the
heaviest. (Answer on page 2)
(Answer on page 2)
 Did you know...
Requests to the right ear are more successful! Studies show that sound from both
human ears is processed differently within the brain. Researchers have noted
that humans tend to have a preference for listening to verbal input with their
right ears and when given stimulus in both ears, they’ll privilege the syllables that
went into the right ear.

Angela says…
Think about DIY lease terms
Having a vacant property over Christmas can be a financial drain (not to
mention inconvenient) so it pays to think ahead for the type of lease term that
suits your situation.
The widely accepted options for a fixed term agreement are six or twelve
months however this is not a hard and fast rule.
Any lease term can be tailored to suit you - the one catch is that it must also
be attractive to a tenant.
Now that we are in September, if your tenant vacates in accordance with the
lease, consider whether September 2010 is a good month for you in terms of future
holiday plans or whatever else is happening in your life.
Likewise as we approach Christmas if your property becomes vacant perhaps a September
fourteen month lease from December to March would be better. It saves the
property falling vacant again at the busiest time in most people’s calendars. Rental Review
Often you will find this suits the tenant too - who wants be stuck with the stress and
cost of moving at Christmas? Or if selling is on the cards for you, perhaps a Brisbane region rental prices
nine month lease would work best so you can end the tenancy and sell the PriceFinder has estimated
property in the next Spring market...
that rental prices for both
Don’t rule out longer term agreements either. While you benefit from greater
financial security, a two year lease can be particularly attractive for relocating units and houses have
tenants or families who have a lot to move and want to stay in one place increased by 5% in the
for a while. 12 months to August 2009.
Lease terms are a key point of negotiation so talk to us about what might
Rather than using medians, PriceFinder
work best for you next time your property becomes available. required?
performs individual rental reviews for
each property in both the current
period and again 1 year earlier. This
Brain booster returns a much less volatile result
than median estimates.
(From page 1)
Do you have ‘e-waste’? The heaviest dog is Jam, then Over 150 individual properties were
There are a number of recyclers included in the sample.
Pumpkin, the next heaviest is
who collect electronic waste such
Copper, followed by Brandy, and The suburbs included in the review:
as computers, fax machines,
Hamilton, Sandgate, Kedron, Annerley,
photocopiers and screens. Check the lightest dog is Jelly. STRATEGY
Sherwood, Loganlea, Strathpine and
out www.ewaste.com.au or Guess and check - write each name
www.cleanup.org.au for lists of e- Capalaba.
on post it notes and move them to
waste recyclers in your area. To learn more about the PriceFinder
test the sequence. system go to www.pricefinder.com.au.

Have you run out of patience with your property manager??

Call us you will be pleasantly surprised.
t: 0412 242 327
1, 31 Derby Street, Vaucluse NSW 2030 e: rentals@phoenixnetwork.com.au

Espresso is possible with the support of apmasphere

 Chamberlain Avenue, ROSE BAY $2200pw
Breathtaking Panoramic Views of Sydney Harbour 3
3 bedroom home with open plan living and dining areas flow on to expansive harbour
3/4 2
facing terraces. There is a huge media room with en suite which can be converted more
living or bedroom. Internal lift. An abundance of natural light all day. Solid Silver Ash
timber kitchens with Caesar stone tops and s/s Miele appliances. 3 marble and limestone
bathrooms plus powder room. Small courtyard garden. All bedrooms have built in
wardrobes & balconies. Reverse cycle multi zone air-conditioning Massive internal
security garage for 2 cars (more space can be arranged) Back to base security alarm.
Internal laundry. Visual intercom system. This property is well placed in close proximity to
shops & beaches, both ocean & harbour. Scots College & Cranbrook School are 8 mins
away. Kambala School and Kincople are within walking distance.

PARKING SPACE – MURRAY ST DARLING HARBOUR

2 secure parking spaces
24hr access close
cross the bridge or
take the monorail to the CBD

Espresso is possible with the support of apmasphere