February 2010

Don't Write Off Property
me Loans

How Can You Make Your Investment Property More Attractive To Tenants?

www.kimhamilton.com.au

Properties Recently Rented

Investment Properties For Sale

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Cnr. Macquarie & Cobra Sts
Dubbo NSW 2830

TEL: (02) 6882 1755

Fax: (02) 6884 2229
marketing@rhdubbo.com.au

FEBRUARY 2010

DON'T WRITE OFF PROPERTY

Despite the rate rises, land remains a good long-term investment.

Usually it's three strikes and you're out - and the Reserve Bank has just taken the unprecedented step of raising interest rates in a third consecutive month.

But is that game over for the property market? Certainly, property prices are a big part of the reason the RBA acted so decisively.

It has for months been making noises about the possibility of an asset bubble forming.

The trouble is that the drastic steps taken over the past 16 months to safeguard Australia from the global financial crisis have worked too well.

The two-pronged defence, of the RBA cutting rates 4.25 percentage points in eight months and the Government temporarily doubling and even tripling (for new dwellings) the first home-buyers' grant, has yielded a tremendous result.

Nationally, prices did take a short-lived dip as valuations in some countries were diving more than 50 per cent (the epicentre of the crisis, the US, predictably fared worst).

However, latest figures from RP Data show that in the 10 months to October, prices in our nation's capitals surged 10 per cent.

At the top of the pack are Melbourne, Darwin, Canberra and Sydney with 14.9 per cent, 12.7 per cent, 11.0 per cent and 9.9 per cent growth, respectively.

But all other capitals posted positive returns, from Brisbane on 6.9 per cent to Adelaide on 4.6 per cent.

The median house price in Sydney is still highest at $553,583, followed by Canberra at $503,666 and Perth at $498,541. Melbourne is fourth with $481,247.

But with rates again on the increase and the first-home buyer's boost about ended, can prices stay there?

Growth may slow - as the RBA wants - but the answer is probably yes. In the midst of the crisis, I wrote that a number of unique factors in our market would protect us.

Several of these still prevail. The first was that the Reserve had prudently and gently deflated our housing bubble before the GFC - which, don't forget, all started in the US mortgage market.

The interest rate rises may have hurt at the time but they did much to insulate Australia from the slump experienced globally.

And their comparatively high level subsequently gave the RBA a very effective lever to pull when things got hairy.

It's now on a clear campaign to unwind the 49-year-low emergency settings - as is appropriate for an economy that is in the throes of at least a tentative recovery.

However, in terms of property investment, the consequence of our previously high rates lingers.

The 12 rises from 2002 prompted a mass exodus of investors from the market and activity remains relatively low today.

This has created a shortage of rental properties and rapid growth in what landlords can charge.

Which, now the bidding frenzy created in some areas by the first home-buyer's boost has ended, could entice new ones into the market.

What's more, the conditions could also force more tenants to become owners. But the third and most important factor underpinning property prices is our ongoing housing shortage and strong population growth.

It's estimated we are now building 30,000 too few dwellings each year.

The RBA could well be successful in, once again, slowly applying the brakes to the property market. But - long term - it's still a good investment.

Nicole Pedersen-McKinnon - Sydney Morning Herald

HOW CAN YOU MAKE YOUR INVESTMENT PROPERTY MORE ATTRACTIVE TO TENANTS?

Heather Rees, senior property manager, Raine & Horne Summer Hill tells you how.

“Tenants basically want the same as owners and that is an attractive, functional place to live. The big pluses for attracting good quality, long term tenants are such things as – polished floors, modern kitchen, balcony, toilet separate from the bathroom or a second toilet, internal laundry and plenty of storage. If both bedrooms have built-in wardrobes that is a big plus, but even one is an advantage. Houses should provide a secure outdoor area for children.”

Heather's Hot Tip for Landlords

If your rental house is subdivided and if it is possible to do so, the owner should consider installing a water sub-meter so water usage can be charged to the tenants. Water is a commodity that has hidden costs for the landlord and although the initial installation might be a few hundred dollars, the outlay will soon be offset – especially if your tenants are high water consumers.

Raine & Horne Investor

WWW.KIMHAMILTON.COM.AU If you have a Property Management or Sales Question that you would like answered or clarified visit www.kimhamilton.com.au. Kim is a director of Raine & Horne Dubbo, Licensed Real Estate Agent, Accredited Auctioneer and has over 18 years experience in the Real Estate Industry.

Properties Recently Rented - Keeping you updated on the local rental market

48 Castlereagh Avenue
Near new executive home located in Yarrawonga Estate. This magnificent property features four good size bedrooms with built-ins, spacious formal and informal living areas, air conditioning, dishwasher, large double lock-up garage and enclosed rear yard. $350pw

19 Wentworth Street
Three bedroom home with an in-ground pool, separate dining and family, ceiling fans, air conditioning unit, walk-in robe, built-ins,two toilets and carport. $270pw

39 Minore Road
Near new impressive three bedroom home situated opposite Delroy Gardens. Featuring built-ins, second toilet, air conditioning and single lock-up garage. $250pw

8 Villiers Avenue
Three bedroom home with built-ins, large lounge, dining, gas points, ducted evaporative cooling, two bathrooms, double lock-up garage and an enclosed rear yard. $240pw

2/240 Fitzroy Street
Two bedroom upstairs/downstairs unit. Includes reverse cycle air conditioning, combined lounge/dining, built-ins, two toilets, garage with internal access and own courtyard. $170pw

Investment Properties For Sale

	12 Springfield Way Bed 3, Bath 1, Car 1 This three bedroom home offers a fresh and inviting interior and is conveniently located close to schools, parks, school and child care. The home interior has new carpet, fresh paint and is perfect for a small family or investor. Features * Kitchen and dining area * Open lounge room * Ducted cooling * Main bedroom with built-in * Corner spa bath * Outdoor entertaining area * Garden shed * Large backyard For Sale: Offers over $190,000 Details: KIMBERLEY JOM 0439 492 484
	17 Lovett Avenue Bed 3/4, Bath 1, Car 1 This beautifully homely property requires not a single ounce of work. Fully renovated, it offers comfortable living allowing you to instantly fall in love with your new home! Features * Polished floorboards * Built-ins * Gas point and wall unit air conditioners * Single garage * Pergola * Quiet area close to shops * Short drive to CBD * Currently leased at $270pw For Sale: Offers over $220,000 Details: JAMES PRATT 0427 754 276 .
	91 Whylandra Street Bed 3, Bath 1, Car 3 Boasting a convenient address with fantastic street appeal, you can see this three bedroom home will offer you a stylish and yet content way of life. Features * Beautiful ornate cornices * Dining room with French doors to rear * Well-equipped kitchen * Modern bathroom * Built-ins in main bedroom * Ducted reverse cycle air conditioning * Open fireplace * Second toilet outside * Garage with workshop/storage area . For Sale: Offers over $215,000 Details: KEN MONGAN 0412 041 363 | KIM HAMILTON 0427 465 543
	1 Galloway Drive Bed 2, Bath 1, Car 1 If you are searching for a fresh and spacious duplex we have found it for you! Located in a quiet cul-de-sac in a handy area, it is perfect for a retired couple, first homebuyer or investor. Features * Huge open planned living area * Large kitchen * Built-ins * Ducted evaporative cooling * Gas point * Carpet and paint only two years old * Pergola For Sale: Offers over $200,000 Details: KIMBERLEY JOM 0439 492 484
	34 Sovereign Street Bed 4, Bath 1, Car 2 Sitting quietly in a convenient location, this tidy family home is comfortable and spacious. Features * Generous living areas * Delightful kitchen with dishwasher and meals area * Built-ins * Ducted air conditioning * New carpet * Neutral colour scheme * Huge north facing pergola * Rainwater tank * Large backyard with rear access * Double length carport * Quiet neighbourhood For Sale: Offers over $250,000 Details: MONICA HENLEY 0410 615 505

Disclaimer

Whilst all care has been taken by Raine & Horne Dubbo to ensure the accuracy of particulars herein, no warranty can be given by us, and interested parties must rely on their own enquiries.

Please advise us if you do not wish to receive any marketing material from our office.
Phone (02) 68821755: Fax (02) 6884 2229: Email sales@rhdubbo.com.au

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