David Deane Real Estate

It's more than just a Boom!

2012-02-01T12:39:00.001+10:00

THE economic phase Australia is entering is being described as a resources boom. I believe this is wrong.

The term boom implies a relatively short, sharp upturn to be followed by an inevitable bust.
I believe we’re seeing long-term structural change, one in which Australia is the principal source of the resources developing nations need to build and to create energy.
It’s akin to the dominant paradigm of the past 50 years: that the world runs on oil and it gets more of it from the Middle East than anywhere else.

A third of the world’s oil production happens in Middle Eastern countries, headed by Saudi Arabia, Iran, United Arab Emirates (including Dubai and Sharjah) and Kuwait. The region is also prominent in natural gas production, headed by Iran, Saudi Arabia and Qatar. Nations such as Saudi Arabia, Kuwait, Dubai and Qatar have not had a boom; they’ve had long-term sustained demand for their products stretching back many decades. The new paradigm features the rise of new forces in the world economy: China, India, Russia, Brazil, Malaysia, Indonesia and South Korea, to name a few. Africa is starting to emerge as a significant economic force also.

China’s growth is not a flash-in-the-pan scenario. China is on a path to becoming one of the world’s dominant economic powers; and it plans to stay there. India is equally important in terms of demand for Australian resources. India’s economic ambitions are as driven as China’s and we’re starting to see the first big Indian investment in Australia’s resources sector, particularly in Queensland’s coal industry.

This too is not a short-term scenario. India is not just buying from us. It’s investing big time for the long term.
Individual companies are making multibillion-dollar investments in mines, rail lines and export terminals. They’re here for the long haul, with projects that have 20, 30 or 40-year horizons.
The same is true of China, Malaysia and South Korea. Many of the resources developments happening in Western Australia, South Australia and Queensland have joint-venture partners from these key Asian economies.

In August, Simon Crean, federal Minister for Regional Australia, said “Australia will become the Saudi Arabia of gas”. He was suggesting Australia would be to gas what Saudi Arabia has been to oil: the leading supplier across the long term. I think he’s right. The four largest liquefied natural gas projects in WA entail investment totalling $115 billion and the four big coal seam gas to LNG developments focused on Gladstone in Queensland are worth about $70bn.

Keep in mind that they all have sales contracts in place for much of the gas they will produce for decades into the future, with India, South Korea, Malaysia, China and Indonesia important customers.
In terms of their effect on the Australian economy, it’s significant that they are only in the early stages of construction, in most cases. The big impact in terms of jobs and business spending is still to come.
The same is true of the expansion programs by the big iron ore miners in WA and the growth plans of coal miners in Queensland and NSW.

In 2001, there were 26,500 employed in the mining sector in WA. Ten years later there are 101,100 jobs and plenty more still to be created as the big projects like Gorgon get under way.
The number of fly-in, fly-out workers moving through Perth Airport is already at record levels, with more growth on the way.

The creation of new or upgraded export facilities is a growth industry in itself. The various plans for Port Hedland, Geraldton and Gladstone – each a $5bn-plus undertaking – are massive. Newcastle in NSW has multibillion-dollar port facilities planned by three different entities. In Queensland, multiple new terminals costing billions are proposed near Mackay and the expansion of Port Abbot near Bowen now entails six new coal export terminals totalling $9bn. Property investors with assets in those locations can feel some comfort that the growth forces are long term, rather than a boom.

THE economic phase Australia is entering is being described as a resources boom. I believe this is wrong.
The term boom implies a relatively short, sharp upturn to be followed by an inevitable bust.
I believe we’re seeing long-term structural change, one in which Australia is the principal source of the resources developing nations need to build and to create energy. It’s akin to the dominant paradigm of the past 50 years: that the world runs on oil and it gets more of it from the Middle East than anywhere else.
A third of the world’s oil production happens in Middle Eastern countries, headed by Saudi Arabia, Iran, United Arab Emirates (including Dubai and Sharjah) and Kuwait. The region is also prominent in natural gas production, headed by Iran, Saudi Arabia and Qatar.

Nations such as Saudi Arabia, Kuwait, Dubai and Qatar have not had a boom; they’ve had long-term sustained demand for their products stretching back many decades. The new paradigm features the rise of new forces in the world economy: China, India, Russia, Brazil, Malaysia, Indonesia and South Korea, to name a few. Africa is starting to emerge as a significant economic force also.

China’s growth is not a flash-in-the-pan scenario. China is on a path to becoming one of the world’s dominant economic powers; and it plans to stay there. India is equally important in terms of demand for Australian resources. India’s economic ambitions are as driven as China’s and we’re starting to see the first big Indian investment in Australia’s resources sector, particularly in Queensland’s coal industry.
This too is not a short-term scenario. India is not just buying from us. It’s investing big time for the long term.
Individual companies are making multibillion-dollar investments in mines, rail lines and export terminals. They’re here for the long haul, with projects that have 20, 30 or 40-year horizons.

The same is true of China, Malaysia and South Korea. Many of the resources developments happening in Western Australia, South Australia and Queensland have joint-venture partners from these key Asian economies.

In August, Simon Crean, federal Minister for Regional Australia, said “Australia will become the Saudi Arabia of gas”. He was suggesting Australia would be to gas what Saudi Arabia has been to oil: the leading supplier across the long term. I think he’s right. The four largest liquefied natural gas projects in WA entail investment totalling $115 billion and the four big coal seam gas to LNG developments focused on Gladstone in Queensland are worth about $70bn.

Keep in mind that they all have sales contracts in place for much of the gas they will produce for decades into the future, with India, South Korea, Malaysia, China and Indonesia important customers.
In terms of their effect on the Australian economy, it’s significant that they are only in the early stages of construction, in most cases. The big impact in terms of jobs and business spending is still to come.
The same is true of the expansion programs by the big iron ore miners in WA and the growth plans of coal miners in Queensland and NSW.

In 2001, there were 26,500 employed in the mining sector in WA. Ten years later there are 101,100 jobs and plenty more still to be created as the big projects like Gorgon get under way.
The number of fly-in, fly-out workers moving through Perth Airport is already at record levels, with more growth on the way.

The creation of new or upgraded export facilities is a growth industry in itself. The various plans for Port Hedland, Geraldton and Gladstone – each a $5bn-plus undertaking – are massive. Newcastle in NSW has multibillion-dollar port facilities planned by three different entities. In Queensland, multiple new terminals costing billions are proposed near Mackay and the expansion of Port Abbot near Bowen now entails six new coal export terminals totalling $9bn.

Property investors with assets in those locations can feel some comfort that the growth forces are long term, rather than a boom.

Source:

Renovators at risk of overspending

2011-11-16T14:53:00.001+10:00

A RUSH to renovate by property owners who don't want to sell into the flat real estate market is threatening to create a new set of financial problems.

Many people risk overcapitalising their homes and being disappointed when they eventually sell, says EPS Property Search director and author Patrick Bright.

"Those homeowners who have overcapitalised are being exposed more than ever, leaving many at risk, particularly in areas where the market has softened quite significantly," he says.

"The number one cost people try to avoid by renovating is stamp duty.

"Unfortunately, they don't realise they can tear up just as much, if not more, by overcapitalising on a renovation."

Recent government data has showed increases in renovation activity but declines in new home building starts amid falling real estate prices.

Growing numbers of renovators are opting to take a do-it-yourself approach.

New research from Canstar Blue shows 73 per cent of people are doing the majority of house painting themselves.

Generation X those aged 30 to 50 years are more likely to ditch professional painters, the research found.

However, fresh paint or more expensive renovations cannot insulate property owners from the broader market declines, with capital city house prices slumping between 1.2 per cent and 9.1 per cent over the past 12 months.

Figures released last week by RP Data and Rismark suggest the national housing slump seems to be slowing, with capital city home values down 0.2 per cent in September.

"In the month of September there were wide divergences in the performance of the individual cities," RP Data research director Tim Lawless says.

Bright says it is not unusual for people to be asking prices 10 per cent above their true value to try to cover the cost of their renovations.

"One tell-tale sign that a homeowner has overcapitalised is when you ask the sales agent how the vendor came up with the asking price," he says.

"The sales agent quotes the amount the owners spent on the renovations and the price the property was worth prior to the renovations, adds the two together and there's the expectation to sell the property at that price."

Source:

UNDERSTANDING THE NEGOTIATION PROCESS

2011-11-02T10:52:00.003+10:00

Negotiating the selling price of a property is a tricky process and emotions often run high. Vendors sometimes think that moving from their original asking price means they are “losing money”, while purchasers are afraid of “going too high” in the heat of the moment. It’s a wonder properties ever get sold, when the price a purchaser is prepared to pay is often so much less than a vendor is prepared to sell it for!

Whether you are buying or selling, it helps to remember that market value for any property can never be scientifically established or arbitrarily insisted on. A property’s price depends on purchaser demand at the time of selling; when there is little buyer interest in a property, the price tends to be lower. If there are lots of buyers competing for a property, the price tends to be higher. Neither the vendor’s “I won’t take any less than…” or the purchaser’s “This is my final offer” actuallly determine the price. The price only becomes a reality when two parties agree to it and exchange contracts at law. In the course of negotiation, the vendor’s desire to get the highest price is offset against the purchaser’s desire not to pay too much. Neither wants to miss out – vendor on sales, purchasers on properties they have set their heart on. The point or price that is neither too little nor too much depending on where you are standing is arrived at by small (usually!) adjustments until the two parties evolve to a position they find mutually satisfactory.

Many vendors and purchasers think they can deliver a price ultimatum. If this is done before the market value is arrived at, it will usually bring negotiations to an end. The New Shorter Oxford Dictionary (1993) says: “It is not a negotiation when one party says “this is what I want.” It is easy to forget that market forces dictate prices and vendors who say: “We need $x to buy what we want” and purchasers who say: “This is my one and only offer, take it or leave it” need to ask themselves whether they have based their figures on analysis of past selling prices for similar houses, and not on their own wishful thinking. Whether you’re a purchaser or a vendor, leaving a window open for negotiation usually means you won’t get the door closed on the sale.

Where the balance of power lies in negotiations depends on the market. In a sellers’ market, vendors can and do make ultimatums and hold out for dream prices, while in a buyers’ market it is the buyers who have the upper hand in any negotiations.

Source

‘STAND AND WAIT’ NOT GOOD MARKET STRATEGY

2011-10-28T11:02:00.001+10:00

When media reports start talking about static or falling home prices, many homebuyers think that it’s a good idea to watch the market and wait for it to reach the bottom. They feel that if they postpone their purchase long enough, they are likely to see prices fall further and snap up a ‘real bargain’.

While bargains do exist, of course, for people who are in the right place at the right time, there are often more people who miss out by using this strategy than gain. Most homebuyers buy their family home and live in it for, on average, seven to ten years. And when we’re looking at averages, the property market continues, in the big picture, to rise. Based on historical property cycles, property may undergo periods of static growth and periods of galloping growth, but on average, well-located, well-selected residential property doubles in value every ten years or so. Certainly, if we could always pick the lowest time to buy and the highest time to sell we would do very well indeed, but the only buyers who need worry about the immediate state of the market are the real estate speculators who wish to buy then sell again straight away, or those who are too highly geared or who have entered into unrealistic amounts of debt. For everyone else, the chances of strong long-term capital gain are virtually assured, provided they buy well-selected property in well-selected locations.

It’s famously difficult to pick the ‘bottom’ of the market. Often buyers who wait find themselves having little to choose from as listings get scarce – and a sudden flurry of competition for the few desirable properties actually on the market for sale often causes them to sell for higher prices than expected, even in a market described as a difficult one for sellers. Buyers end up paying more than they bargained for if they keep on watching and waiting; because the ‘flurries’ they waited out were signalling an upturn in the market or the end of the halcyon days for buyers.

Purchasers who wait too long for a ‘bargain’ or the ‘lowest point of the market’ often only realise that the lowest point has already been reached once they can look back on it with the 20/20 vision of hindsight.

source

Summer is quickly approaching - Pool Safety Tips

2011-10-18T17:06:00.001+10:00

As the months warm up the need to cool off becomes ever greater, and the swimming pool is an attractive remedy to beat the heat.

However, with drowning danger apparent, it is important that everyone takes pool safety seriously. Following are some tips to ensure that your pool is safe during summer, which could save someone’s life:

• Ensure there is a CPR sign clearly displayed near your pool.

• Make sure that everyone at your home knows the CPR process. You can attend courses through the local Ambulance service.

• Ensure that you have rescue equipment by the pool in case of an emergency.

• Don’t leave climbable objects near the pool fence.

• Don’t leave equipment or toys in the pool as it can encourage small children to want to get in the pool.

• Always have an adult present when small children are swimming in the pool.

• Take your phone outside when supervising small children so you don’t have to leave… even for a minute.

• Never leave the pool gate propped open. This not only poses a danger to small children, but weakens the hinge on the pool gates, often causing it not to close properly.

• If you have a pool cover, always ensure that it is secured to the pool so small children cannot climb under.

If you are concerned about the safety of your pool it is recommended that you contact your local pool safety expert for professional advice

Securing the best tenant

2011-10-11T12:21:00.003+10:00

Our philosophy is to find the best possible tenant in thequickest possible time to ensure that we are maximising your rental income.

However, if tenant demand is low, it is far better to have theproperty vacant an extra week than to approve ANY tenant just for the sake ofhaving the property rented.

A tightening of the economic climate brings many social andfinancial factors that can impact on the management of rental properties. Tenantscan find it harder to secure affordable housing, which can result in dishonestyon tenancy applications when applying for a rental property.

You can be confident that we are strict in our tenant selectionprocess. We are focused onsecuring tenants that will care for your property and pay the rent on time.

When we undertake the tenant application process we are thoroughin our research process of the tenant.

Following are a few of the areas and strategies that we takeinto consideration:

We verify their employment reference confirming the stability oftheir position and income by sighting wage slips.
We use the 30/70 rule as a guide to determine the tenant’saffordability of rental payments so they don’t overcommit. (30% of thehousehold’s income is allocated to rent)
We avoid ringing listed mobiles andwill conduct a telephone-number search of the employer’s business or previouslandlord.
We verify previous rentalreferences. Real Estate referencesare often the most reliable. Ifthey have rented privately we will conduct a property search to confirm theowner of the property.
If they have travelled frominterstate we will verify this with the address on their driver’s licence.
We will conduct a tenant defaultdatabase search to see if they have defaulted as a tenant previously.
We will also look at other keyfactors such as how long they have resided at their previous property (long-termtenants are a better investment), whether they have pets and how many peoplewish to reside in the property.

While most tenants are honest in the application process, fromexperience there are still those who try to manipulate the process with falseinformation.

It is our duty of care to all landlords that we are thorough inour tenant selection process to ensure that your investment is protected. ■

Women powering the property market

2011-10-06T11:57:00.003+10:00

Despite Australia enduring an up and down property market at present, it seems women are bucking the trend and leading the way in the search for prime real estate.

Research from realestate.com.au has revealed women are the power players when it comes to the property purchasing process.

Figures show women are currently accounting for two-thirds of visitors to the website and 87% are searching the site for property a minimum of three times per week (1).

From teenage to the twilight years, the research unearthed five distinct consumer segments that demonstrate the prominent role women play as ‘buyers’ or ‘drivers’ in the Australian property market.

The survey of 1260 female ‘active’ property seekers using realestate.com.au found five female segments were esentially the leaders in online property searches and determining a list of properties for consideration.

The segments, made up of First Home Buyers (25%), Upsizers (22%), Downsizers (7%), Lifestyle Seekers (27%) and Investors (17%), not surprisingly found a quarter of female online browsers were looking for their first home.

The survey also found:

Affordability was a major issue for First Home Buyers, with 67% looking to purchase a home under the $400,000 price range.

Around one in five active female property hunters were looking to upsize to a bigger or better home (Upsizers). Most were living in metro areas, from middle to higher income households and searching above the $500,000 price range.

Downsizers were the smallest of the five segments, representing just 7% of active female property hunters. Almost half (46%) were visiting the site daily to search for their ideal property.

More than one in four active female property hunters were primarily seeking a new lifestyle (Lifestyle Seekers) in a new area (rather than a bigger/smaller home, or first/investment property). The majority of lifestyle seekers were searching for properties in the $500,000 to $750,000 price range.

Female investors represented 17% of the active buyers searching on realestate.com.au. Around half were looking at properties under $400,000, with almost half of respondents (49%) indicating using the site to find out the ‘sold’ prices of properties.

The survey also revealed these consumer segments demonstrated significantly different search behaviours, using a range of tools such as property websites, mobile search and telephone enquiry to progress their interest in a property.

Source

A review of your home insurance

2011-09-29T12:42:00.001+10:00

Home insurance is the most important protection that you can have for your investment property. If damage occurs from an unexpected fire, storm, flooding or burglary, you want to have peace of mind that you are financially covered.

In reviewing your home insurance we have taken the time to list some thought provoking questions:

Is your property adequately insured? If your property was destroyed could you rebuild the property to the same standard?
Is your property overinsured? Remember, you do not need to insure the land value. If you purchase a property for $500,000 it is going to include a portion of land value.
Do you know what is considered building and what are contents within the property? Insurance companies may classify these differently, which can affect the insurable value for the building or contents. You need to find out what an air-conditioner, carpets, blinds, light fittings, security systems, etc. fall under.

Some insurance companies have a limit on how long they will cover a home while it remains vacant. Is your property covered if it is vacant?

We strongly recommend that you discuss these questions and ask further questions of your insurance company or broker to ensure that you are adequately covered

EVALUATE YOUR POTENTIAL AGENT IN 15 Q's

2011-09-21T14:22:00.002+10:00

Did you know that there are fifteen questions that will help you separate the professional from the not so professional agent when you are trying to work out who will sell your home? Compare two or three agents’ answers to these questions and you will not only know your local marketplace better but you will have a good idea of which agent is likely to do the best job of selling your home.

How long have you been selling real estate?
How many properties have you sold in the last 12 months?
From what advertising sources do the majority of local home buyers come?
Approximately how many purchasers do you have listed on your books who might be interested in inspecting my property for sale?
a) Do you recommend advertising on the internet?
b) If yes, what sites do you use?
c) Do you use virtual tours?
Are Open Homes a good idea?
What is your agency’s attitude to auction?
If I were to auction what is your agency’s percentage, over the last 6 months, of properties sold
a) prior to auction?
b) under the hammer?
c) after auction?
Over the last 6 months what has been the percentage variation in a local property from asking price to sold price?
What is your agency’s average length of time from the first marketing activity to offer and acceptance?
What is the length of your agency period?
Do you provide a Service Guarantee? If yes, can I see it?
If I am not happy with your service what remedies do I have?
a) What is the average cost of a marketing programme?
b) Can I pay it off in two or three (credit card?) payments?
Why should I appoint you as my selling agent?

Source

How do you know if it is a tenant or landlord market?

2011-09-12T14:24:00.000+10:00

There are a number of factors that market researchers rely on to determine whether it is a tenant or landlord market. However, the most commonly referred to statistical data is the ‘vacancy rate’.

In a recent article published by domain.com.au an expert in research, Louis Christopher, Managing Director from SQM Research, commented that “In almost all locations around the country, renters are facing an uphill battle in finding affordable accommodation”.

So...how do you know if it is a tenant or landlord market?

Overall, a market that favours landlords is said to exist when vacancy rates are below 3 per cent. Above this level, it starts to turn into a tenants’ market.

SQM Research recorded the national vacancy rate at 1.9 per cent, which represents a very difficult market for renters.

The data collected to determine the national vacancies rates was based on online rental listings that had been advertised for three weeks or more, compared with the total number of established rental properties.

The toughest market is Canberra at just 0.7 per cent, while the one that best favours tenants is Melbourne, which has a vacancy rate of 2.8 per cent. Sydney is recording 1.4 per cent, with the outer ring showing rates below 1 per cent. In some locations in Sydney’s west, vacancies are almost non-existent.

It was also noted that many affluent suburbs or higher-priced rental properties were experiencing higher vacancy rates, such as 4.8 per cent, leading to landlords having to offer discounts to attract quality tenants. This further demonstrates the demand for affordable housing.

A similar trend was witnessed in the second half of 2008 when vacancy rates in some more expensive suburbs reached 10 per cent.

Our current vacancy rate is 1.5%, however, if you are interested in the vacancy rate for a postcode or suburb you can visit www.sqmresearch.com.au to assist with your research.

LOOK CLOSELY AT TOUCH-UPS

2011-09-02T10:57:00.000+10:00

When inspecting a home to buy it is always nice to walk into a property that is well-presented, with new paint finishes and everything spick and span. But sometimes it’s all too good to be true.

While most repairs and new paint represent the efforts of proud home owners paying attention to detail to maximise buyer interest, homebuyers should remember that recent renovations in properties for sale aren’t always what they seem.

Over time most houses will show evidence of the lifestyle of the people who have been living in them. Stains appear after friends have dropped in with a bottle of red, or under the debris left by teenagers cooking themselves dinner. Most of these stains are normal wear and tear.

But some stains represent functional problems; a carpet stain might mean a leaky toilet or shower cubicle on the floor above or adjacent, or it might mean a crack in the foundations through which water is seeping; stains on paint or wallpaper near a window can indicate moisture problems caused by loose glass or fittings; stains in the middle of walls can indicate a (costly-to-repair) leaking internal pipe.

Home buyers should pay special attention to improvements that appear isolated or surfaces that seem touched up. New paintwork, especially where small areas such as one wall or one corner of a room, or back-to-back walls appear to have been done rather than the whole room should be carefully assessed to see if it hides mould or temporarily conceals cracks. Be suspicious when some areas are slick with new paint while other rooms seemingly in need have been bypassed. Even new latticework may be less than innocent; it can be used to hide termite or other infestations.

Prospective purchasers should inspect any recent workmanship carefully. Most work will be just as it seems: conscientious home sellers getting ready for the big event. Still, training yourself to look carefully during inspections so that you spot the repairs that are little more than bandaids for larger problems is likely to cost less time, money and stress in the long run.

THE 7 THINGS BUYERS SEE FIRST

2011-08-27T14:54:00.000+10:00

Many people concentrate on interiors when putting their house up for sale. For good reason - the inside is where purchasers will be living and sleeping. But overlooking the exterior of the house can undo some of the good work home sellers have done inside when they de-clutter, paint and generally pay attention to maintenance.

Purchasers start making judgements from the minute they step out of the car - and a bad first impression can stay with them when they go inside. Untidy or damaged gutters, cobwebs or overgrown gardens brimming with weeds, might just make purchasers decide you don’t care about your home - and make them wonder how good your attention to detail is in the areas they can’t see like plumbing and wiring. Cleanliness is important - even people who don’t mind their own dirt and clutter usually notice other people’s. Before putting the house on the market, stand at the curb and have a critical look. This is the first view your purchasers will see. Does it measure up? Here are six things that are easy to do and will make a difference to the exterior of your house.

Sweep paths and decks.
Clean gutters, window frames and eaves.
Don’t forget to wash outdoor or deck furniture if you have it - in winter it is easy to overlook if you’re not using it like you do in summer. If it is grungy and decrepit, borrow or buy something that suits your home. It’s not expensive in the scheme of things.
Clear away odds and ends - even those that are lurking in the less visited parts of the garden. Remember purchasers will see EVERYTHING. Old plant pots and broken toys or tool, even the half-finished projects or building materials that look like works in progress to you - all these spoil the look of your house.
Organise for high pressure hoses to clean mould or moss from brick work or stone.
Invest in a bit of mulching - it makes garden beds look tidy and the property look nurtured and loved.
Put in some colour where you know people will notice it. You can use pots if that is easier. Just make sure they are kept watered as drooping plants are worse than no plants at all.

localpropertynews.net

Ferderal Government proposes a new "Green Tax" for homes before their sale or lease

2011-08-10T09:42:00.000+10:00

Late last month, the Federal Government announced that they would be listening to the public on the idea of a "green rating" for all Australian homes. Under the scheme, mandatory "green ratings" would be allocated to apartments and houses before they are put up for lease or for sale. This rating would be applicable to both new and old homes and the vendors/landlords would be expected to maintain or improve the "green" rating of the dwelling.

A national report has been drafted detailing four possible versions of auditing a home in NSW. All the audits drafted involve the payment of a financial "tax" payable by the vendor/landlord if they wish to put the property up for sale or for lease. The most expensive of these incorporates a $774 fee for an assessor to perform the audit and an additional $50 if the owner wishes to be present during the assessment. That is a fee of over $800 to assess the homes "green rating."

As can be expected, there is some strong opposition to the Government's proposal. Real Estate Institute of NSW president Wayne Stewart said, "The Government needs to work with consumers to bring about change rather than slap them with what looks like being another tax of up to $800."

The cheapest option would be for the owner to complete a checklist at a cost of $41, a scheme that is already being used in Queensland.

The Government feels that a good green rating could be reflected in an increased value of the property. "Assessing the energy and water efficiency characteristics of a home can help people chose a property that is potentially more comfortable and cheaper to run."

What are your thoughts? Is another tax on housing really the answer to getting us to adopt greener versions of our homes?

Source: Sarah Lordon Real Estate

To increase or not to increase, that is the question...

2011-07-25T12:47:00.000+10:00

When reviewing rents and tenancy agreements the question often arises “Should the rent be increased and if so, by how much?”

As your managing agent, when the tenancy agreement is under review, the first thing we assess is whether the tenant is looking after the property and paying the rent. If the answer to this question is no then renewing the tenancy would be detrimental to protecting and maximising your income. If the answer is ‘yes’ then we would proceed in completing a comparative market analysis of your property to assess the price the property may rent for on the current market.

This is the price that could comfortably be achieved if your tenant decided to vacate the property at the end of their tenancy. Only a few years ago, it was common practice for many agents to just increase the rent by $5 or $10 (regardless of the market review), however, as tenants are becoming more astute and, through Internet resources, are now armed with up-to-date information about the rental market, it is becoming increasingly important to be accurate in accessing the market value of the property.

Many investors are reluctant to increase rents at properties where they have retained a good, loyal tenant for a long period of time, and although this is sometimes a good practice where vacancy rates are high and the rent has only marginally risen, it is important to refrain from consistently choosing this approach. As the market continues to increase without the property being adjusted accordingly the tenant becomes shielded from market conditions, and when they eventually have to move they are unprepared for the increase in living costs.

It is also important to move with the market as conditions do not always reflect increases in costs. When these costs occur, as income is not being maximised, the costs can have a negative effect on the affordability of the investment. If an investor is put in a position where they need to sell their property, having the rent at less than market value will have a negative impact on securing a sale at a reasonable price. ■

10 THINGS TO DO IN A WEEK TO ATTRACT A BETTER PRICE

2011-06-07T09:56:00.000+10:00

Most home sellers like to improve the presentation of their homes for sale. But sometimes it is hard to look objectively at the home that has become so familiar over many years and see what needs to be done to make strangers feel at home. The following ten tips aren’t very difficult or costly to undertake - but will pay off in sales dollars.

Clear clutter, room by room. Take out personal photos - you want buyers to imagine themselves there.
Get a professional clean, especially windows.
Tidy up the garden - make it look neat and easy to look after.
Check the outside of the house for neglect - cobwebs and old toys, tools lying around etc aren’t appealing.
Get rid of any signs of neglect or poor maintenance in the house itself. Replace dead light bulbs, fix squeaky doors, broken blinds, dripping taps etc.
Unless it’s a child’s bedroom, or bedrooms really are too small, put in a double or queen bed or a buyer will assume a bigger one won’t fit.
Put the best quality sheets you can afford on the beds. Make sure you iron them.
Call in a few favours and borrow good furniture to replace any old saggy or stained sofas etc and get rid of anything you can possibly do without.
Board your pets with a friend and clear away pet clutter.
Make liberal use of fresh flowers.

Source: LocalPropertyNews

SETTING THE RENT

2011-05-27T10:31:00.000+10:00

Most experienced residential property investors understand that even a few weeks’ annual vacancy brought about by setting rent too high usually means a lower net income than if the property had been rented at just under current market value for the whole year.

Experienced investors know that maximising income from rental property investment comes from keeping their properties occupied rather than by setting high rents, yet there are still landlords who expect to rent their properties for 110% of market value - in spite of the risk of incurring high tenant turnover and concomitant vacancy. Dissatisfied tenants who move on when they find a better value option create a cycle of higher turnover and further weeks of vacancy.

Furthermore, investors whose properties are not good value get less enquiry and can’t afford to be as selective when deciding who will rent their property. This in turn increases the risk of property damage, neglect and arrears.

Being selective means checking references (these days references are even available for pets!) but beware of taking into account irrelevant criteria such as dress style, marital arrangements and other personal choice issues. The bottom line criterion is Does their history indicate that they would be able to pay $x per week for y weeks?

If a property stays empty because the rent is too high, owners can get desperate enough to overlook a tenant’s patchy references; in the effort to get the highest income, they make themselves more likely to get less because poor references could mean greater likelihood of getting behind with the rent.

New investors can avoid a lot of common errors by making use of the expertise of their managing agent. Many novice investors don’t think of employing a managing agent until something goes wrong; it seems that many people think property management is child’s play until they realise they are out of their depth. Sadly, many people at this stage decide to sell their investment thinking it is ‘all too hard’ – and of course miss out on the investment benefits that accrue down the years.

Source: Local Property News

BUYING A PROPERTY WITH A FRIEND

2011-05-23T12:42:00.001+10:00

There are two kinds of property ownership contract – joint tenancy or tenants in common. Do you know which is more suitable if you are buying with a friend or business partner and which is better if you are buying with a spouse?

Usually when more than one person buys a property, they do so with a spouse. But with the price of real estate these days in most major cities, more and more people are opting to buy with a friend or business partner, either to live in together or to rent out as an investment.

The two types of contract available are Joint Tenancy and Tenancy in Common. Both types of contract allow for the owners to sell their share of the property to someone else, but they are different in other ways.

As a joint tenant you are entitled to possession of the entire property, but if you die, your joint tenant automatically owns the property no matter what your will says. Therefore this type of contract is normally only used by people in a close relationship.

If the contract specifies that you and your co-owner are Tenants in Common, it means that you can leave your share to a friend, child or other person in your will. This form of ownership is suitable for people making a business venture, or for friends who are using shared ownership as a means of getting into the market at a lower figure than if they were to buy a whole property by themselves. The arrangement can be 50/50 or any other ratio that works for you.

Note: Always obtain your own individual legal advice as it relates to your specific circumstances. This article is intended to be general advice only.

Source: Local Property News

We'd like to share this with you...

2011-05-06T14:33:00.000+10:00

We get some truly wonderful letter from delighted clients thanking us for helping them make their dream come true - this is an exert from one such letter and we'd like to share it with you...

..."We wanted to take this opportunity to let you know how grateful and happy we were to have you work for us with the purchase of our property in Lawnton in early 2011. As you may recall this time was a very difficult time for us having been affected by the January 2011 floods. Your consistent contact with us and encouragement helped us remain focused and excited even during this difficult time.

David Deane Real Estate is a very professional organization and I would recommend anyone contact you should they be interesting in purchasing or selling their property."

GOOD TENANTS DON'T HAVE TO MOVE AS OFTEN

2011-05-04T12:51:00.000+10:00

5 TIPS FOR RENTERS WHO WANT TO STAY

One of the drawbacks of renting is that the landlords may want you to move out at some stage. This could be for reasons that you can’t help such as their needing to sell the property or wanting a family member to live in it, but sometimes even the decision to sell could have been influenced by the tenants themselves. What can you do to minimise the risk of this happening?

Many tenants make the mistake of thinking that landlords are ‘wealthy’. But many of them are young people - themselves living in shared houses to be able to afford to pay off a loan, or young couples with children making economies on holidays in order to prepare for their retirement. For such landlords, the fact that the rent is paid on time is very important to their cash flow, and tenants who think it ‘doesn’t matter’ if they get a bit behind in the rent may be setting themselves up for trouble in the long run.
Some tenants complain all the time and require even the smallest maintenance jobs to be done by the landlord. On the other hand, there are those who don’t bother making the call even for something serious that may cost the owner more money the longer the repair remains undone.
Think of the impact you have on neighbours. If neighbours complain about noise or rubbish left lying around to the agent landlord or worse police, it goes without saying that you won’t get to stay once the lease expires.
You may not be too fussy about dust or soap scum yourself but if you know it’s inspection time - get cleaning. If the place looks well cared for, agents and landlords won’t be looking for other things.
Ask before making any changes to the property - even putting nails in the walls to hang pictures.

Source: Local Property News

Queensland housing opportunity

2011-04-30T09:49:00.000+10:00

Ok, it's official Queensland residential real estate is the cheapest in Australia.

Wow? That just does not make sense. What a great place to live with our lifestyle choices from vibrant cities to glistening beaches, all on the doorstep of some of the best tourist destinations in the country.
Our cost of living is cheaper than Sydney or Melbourne. Our state is resource rich. Anyone seriously looking for a good job can get one.
So whats the point?
If you want to make some serious money, the rule is buy before the next boom! Of course when the taxi drivers are telling you to buy, it's time to sell.the market today offers some excellent buying pretty much cash-flow neutral or at times positive. You just need to act before the mob and let time do it's work.
In two to five years there will be some massive jumps, confidence restored and the rewards will flow.
What an opportunity? The chance to sell and pay off your mortgage, or fund schooling or retire with independent wealth. The downside is so much less than the upside.
It takes courage to swim against the tide but the scenery can be life changing.
WHAT AN OPPORTUNITY NOW....buy a few and let leverage, the taxman and tenant pay your bills.

David Evans Carbon Accounting Modeller Says Its a Scam

2011-04-29T14:56:00.000+10:00

Dr David Evans’ address to the Anti-Carbon-Tax rally, Perth Australia, 23 March 2011.

Good Morning Ladies and Gentlemen.

The debate about global warming has reached ridiculous proportions and is full of micro thin half-truths and misunderstandings. I am a scientist who was on the carbon gravy train, understands the evidence, was once an alarmist, but am now a skeptic. Watching this issue unfold has been amusing but, lately, worrying. This issue is tearing society apart, making fools and liars out of our politicians.

Let’s set a few things straight.

The whole idea that carbon dioxide is the main cause of the recent global warming is based on a guess that was proved false by empirical evidence during the 1990s. But the gravy train was too big, with too many jobs, industries, trading profits, political careers, and the possibility of world government and total control riding on the outcome. So rather than admit they were wrong, the governments, and their tame climate scientists, now cheat and lie outrageously to maintain the fiction that carbon dioxide is a dangerous pollutant.

Let’s be perfectly clear. Carbon dioxide is a greenhouse gas, and other things being equal, the more carbon dioxide in the air, the warmer the planet. Every bit of carbon dioxide that we emit warms the planet. But the issue is not whether carbon dioxide warms the planet, but how much.

Most scientists, on both sides, also agree on how much a given increase in the level of carbon dioxide raises the planet’s temperature, if just the extra carbon dioxide is considered.These calculations come from laboratory experiments; the basic physics have been well known for a century.

The disagreement comes about what happens next.

The planet reacts to that extra carbon dioxide, which changes everything. Most critically, the extra warmth causes more water to evaporate from the oceans. But does the water hang around and increase the height of moist air in the atmosphere, or does it simply create more clouds and rain? Back in 1980, when the carbon dioxide theory started, no one knew. The alarmists guessed that it would increase the height of moist air around the planet, which would warm the planet even further, because the moist air is also a greenhouse gas.

This is the core idea of every official climate model: for each bit of warming due to carbon dioxide, they claim it ends up causing three bits of warming due to the extra moist air. The climate models amplify the carbon dioxide warming by a factor of three – so two thirds of their projected warming is due to extra moist air (and other factors), only one third is due to extra carbon dioxide.

I'll bet you didn't know that. Hardly anyone in the public does, but it’s the core of the issue. All the disagreements, lies, and misunderstanding spring from this. The alarmist case is based on this guess about moisture in the atmosphere, and there is simply no evidence for the amplification that is at the core of their alarmism. Which is why the alarmists keep so quiet about it and you've never heard of it before. And it tells you what a poor job the media have done in covering this issue.

Weather balloons had been measuring the atmosphere since the 1960s, many thousands of them every year. The climate models all predict that as the planet warms, a hot-spot of moist air will develop over the tropics about 10km up, as the layer of moist air expands upwards into the cool dry air above. During the warming of the late 1970s, 80s, and 90s, the weather balloonsfound no hot-spot. None at all. Not even a small one. This evidence proves that the climate models are fundamentally flawed, that they greatly overestimate the temperature increases due to carbon dioxide.

This evidence first became clear around the mid 1990s.

At this point official “climate science” stopped being a science. You see, in science empirical evidence always trumps theory, no matter how much you are in love with the theory. If theory and evidence disagree, real scientists scrap the theory. But official climate science ignored the crucial weather balloon evidence, and other subsequent evidence that backs it up, and instead clung to their carbon dioxide theory — that just happens to keep them in well-paying jobs with lavish research grants, and gives great political power to their government masters.

There are now several independent pieces of evidence showing that the earth responds to the warming due to extra carbon dioxide by dampening the warming. Every long-lived natural system behaves this way, counteracting any disturbance, otherwise the system would be unstable. The climate system is no exception, and now we can prove it.

But the alarmists say the exact opposite, that the climate system amplifies any warming due to extra carbon dioxide, and is potentially unstable. Surprise surprise, their predictions of planetary temperature made in 1988 to the US Congress, and again in 1990, 1995, and 2001, have all proved much higher than reality.

They keep lowering the temperature increases they expect, from 0.30C per decade in 1990, to 0.20C per decade in 2001, and now 0.15C per decade – yet they have the gall to tell us “it’s worse than expected”. These people are not scientists. They over-estimate the temperature increases due to carbon dioxide, selectively deny evidence, and now they cheat and lie to conceal the truth.

One way they cheat is in the way they measure temperature.

The official thermometers are often located in the warm exhaust of air conditioning outlets, over hot tarmac at airports where they get blasts of hot air from jet engines, at wastewater plants where they get warmth from decomposing sewage, or in hot cities choked with cars and buildings. Global warming is measured in tenths of a degree, so any extra heating nudge is important. In the US, nearly 90% of official thermometers surveyed by volunteers violate official siting requirements that they not be too close to an artificial heating source. Nearly 90%! The photos of these thermometers are on the Internet; you can get to them via the corruption paper at my site, sciencespeak.com. Look at the photos, and you’ll never trust a government climate scientist again.

They place their thermometers in warm localities, and call the results “global” warming. Anyone can understand that this is cheating. They say that 2010 is the warmest recent year, but it was only the warmest at various airports, selected air conditioners, and certain car parks.

Global temperature is also measured by satellites, which measure nearly the whole planet 24/7without bias. The satellites say the hottest recent year was 1998, and that since 2001 the global temperature has leveled off.

So it’s a question of trust.

If it really is warming up as the government climate scientists say, why do they present only the surface thermometer results and not mention the satellite results? And why do they put their thermometers near artificial heating sources? This is so obviously a scam now.

So what is really going on with the climate?

The earth has been in a warming trend since the depth of the Little Ice Age around 1680. Human emissions of carbon dioxide were negligible before 1850 and have nearly all come after WWII, so human carbon dioxide cannot possibly have caused the trend. Within the trend, the Pacific Decadal Oscillation causes alternating global warming and cooling for 25 – 30 years at a go in each direction. We have just finished a warming phase, so expect mild global cooling for the next two decades.

We are now at an extraordinary juncture.

Official climate science, which is funded and directed entirely by government, promotes a theory that is based on a guess about moist air that is now a known falsehood. Governments gleefully accept their advice, because the only way to curb emissions are to impose taxes and extend government control over all energy use. And to curb emissions on a world scale might even lead to world government — how exciting for the political class!

A carbon tax?

Even if Australia stopped emitting all carbon dioxide tomorrow, completely shut up shop and went back to the stone age, according to the official government climate models it would be cooler in 2050 by about 0.015 degrees. But their models exaggerate tenfold – in fact our sacrifices would make the planet in 2050 a mere 0.0015 degrees cooler!

Sorry, but you’ve been had.

Finally, to those of you who still believe the planet is in danger from our carbon dioxide emissions: sorry, but you’ve been had. Yes carbon dioxide a cause of global warming, but it’s so minor it’s not worth doing much about.

————————————————————————————

Dr David Evans consulted full-time for the Australian Greenhouse Office (now the Department of Climate Change) from 1999 to 2005, and part-time 2008 to 2010, modeling Australia’s carbon in plants, debris, mulch, soils, and forestry and agricultural products. Evans is a mathematician and engineer, with six university degrees including a PhD from Stanford University in electrical engineering. The area of human endeavor with the most experience and sophistication in dealing with feedbacks and analyzing complex systems is electrical engineering, and the most crucial and disputed aspects of understanding the climate system are the feedbacks. The evidence supporting the idea that CO₂ emissions were the main cause of global warming reversed itself from 1998 to 2006, causing Evans to move from being a warmist to a skeptic.

Interest rate rise threats

2011-04-29T13:45:00.000+10:00

What on earth is wrong with our economists? They are claiming the need for increased rates to combat higher than expected inflation.
Why didn't they expect higher inflation? Higher costs are blatantly obvious to every household along with a poorer standard of living, that's real! Inflation has been caused in the large part to reckless utility increases which have occurred because the greedy hand of government just takes more and more. Why? to waste on pet projects that no-one asked for and no-one wants.
Lets be clear the cost of fuel and food increases has not been caused by any run away demand. The demand if anything is dropping with our standard of living. These increases have been thrust upon us via poor statesmanship.
Its time every politician and local government representative got it through their heads, we have had enough of the greed grab. Its gone and they better start to perform or they will thrown out as well they should be.

Don't focus on interest rates - focus on HOW we can lower power, water, fuel, rates and food costs to a world parity level such as we had three years ago.

Its not the GFC fault- its poor leadership and grandiose waste. I believe we have all had enough.

PEST CONTROL - who is responsible?

2011-04-29T09:55:00.000+10:00

The terminology ‘pest control’ can cover many different types of pest and vermin, such as:

· Fleas

· Cockroaches

· Ants

· Spiders (i.e. Redbacks)

· Rats & Mice

· Snakes & Possums

· Bees & Wasps

· White ants

All of these pests and vermin at some stage may become evident in rental properties… So who is responsible for pest control?

In many States the legislation relating to pest control can be very unclear and is often open to interpretation.

A tenant is responsible for keeping the property clean, while the owner is responsible for maintaining the property in a safe state of repair, fit for the tenant to reside.

There are also many local types of council who enforce health and safety by-laws for residential property owners to undertake pest control on an annual basis for pest and vermin, namely cockroaches.

The only pest that is clearly the tenant’s responsibility is fleas. The presence of fleas is a result of the tenant owning a pet that is not directly related to the maintenance of the property. When a tenant vacates the property it is a condition of their tenancy agreement to undertake flea treatment control.

As a managing agent we appreciate that many of the listed pests can be eradicated by simple supermarket products, such as inspect spray, baits and traps, which would be our first recommendation to the tenant.

However, if a tenant is concerned about their safety then it would need to be addressed by the property owner.

Pest Control Summary:

Cockroaches can be treated under a 12 month warranty.
Ants are a difficult pest to eradicate and would only pose a concern if they were harmful.
Spiders can be treated under a 12 month warranty and should be actioned quickly if the spider is harmful – i.e. redbacks.
Rats & mice can be treated with baits. It is important to eradicate these pests as they can cause serious damage to appliances and internal electrical wiring, costing far more than the treatment cost.
Snakes can be a scary animal to remove. Possums can also be a nuisance pest if they start nesting in the roof, which can result in property damage. Wildlife specialists are the best point of contact to assist in removing these from the property.
Bees & Wasps can become aggressive and dangerous if their nest is in danger. The treatment of bees and wasps is a concern if the tenant is allergic to them.
White ant activity in a rental property should be checked at least annually by the owner.

All other pests would most often become the responsibility of the property owner, with the exception of it being clearly proven that the presence of the pest was caused from the tenant’s lack of cleanliness or poor house-keeping. If the tenant was not disposing of perishable rubbish or was undertaking activities that increased the presence of pests it could be argued that it is a tenant responsibility.

Anzac day

2011-04-24T17:44:00.000+10:00

LEST WE FORGET A soldier is someone, who at one point in their life, wrote a blank check made payable to their country for an amount up to, and including, their life! That is an honor, and there are way too many people in this country today who no longer understand that fact! Copy and paste this if you are thankful for your freedom. THANK ALL OUR DEFENCE FORCE .......MONDAY - ANZAC DAY

David's March 2011 - Market Comment.

2011-04-12T14:52:00.001+10:00

2011 has proven to be a difficult period.

Sales volume is back by as much as 50%, with prices starting to press 10% under last years, represented by drops of $10,000 to $30,000. This is very significant, and depending on which side of the transaction you’re on, it could be good or bad.

For buyers, this is a real opportunity to secure some excellent property at very realistic prices. If you are selling and buying, it is an opportunity to reduce your changeover costs significantly and, potentially be fortunate to re-buy favourably - basically good either way.

The real difficulty lies with sellers forced to sell now through all sorts of circumstance such as job relocation, job insecurity, partnership split to name just a few. For many of today’s sellers the decision becomes a choice of, "do I want to lose $$$? What are the options?"

Within 5km of our David Deane office, 1200 homes are listed for sale, with around only 100 selling each month. More precisely, 1100 don't sell. That’s 92%!

These homes are priced right across the price spectrum, so competition for buyers is fierce.

Homes that are selling are either extraordinarily well presented, neat, tidy and desirable, or, they have an obvious price advantage over the 1-200 homes they are directly competing against.

This means a very experienced agent with great marketing, communication and negotiating skills, working hard for you, is essential!

The truth is, most offices don't sell enough homes, or attract enough buyers, to make the grade, let alone be able to properly serve their client’s needs.

From the outside looking in, it certainly appears most agents are much the same. This is not the case, as you’ll discover, if you look at the sales results and the real numbers of each agency.

We as a team are working harder than ever on solutions and client focus. We want the very best result that we can achieve by leaving no stone unturned for our clients, and especially, our sellers!

Our bright, new office is now fully operational and well worth a visit – just some minor finishing touches to go. As a result, we are attracting significantly more enquiry from buyers and tenants, and that is uplifting to us all.

We have some friendly new staff on board to handle the load

We have a positive view of where we are and where we want to be – That is, to best serve our client base.

I personally invite you to call in and check us out.

David Deane

RENTAL PROPERTY - PEST CONTROL

2011-03-08T13:04:00.000+10:00

Concerns about cockroaches, fleas, mosquitoes and rats increase over the summer months. But the issue of who is responsible for pest control is not clear cut.

The Act does not make a specific reference to pest control but a clause can be included in the special terms of a tenancy agreement.

Before signing an agreement with a special pest control clause, all parties should be aware of what it means and how it applies to the tenancy.

However, a landlord, property manager or provider can't specify a particular company or product be used to control pests or request a set fee for the pest control of premises. Consideration should also be given to the standard of the property at the start of the tenancy and anything the tenant may have done to contribute to a pest problem.

Under the legislation, tenants have a responsibility to leave the premises in the same condition as it was when they moved in, with the exception of fair wear and tear, and landlords are responsible for ensuring the property is in good repair and meets any health and safety laws.

If the premises were pest free at the beginning of a tenancy and the tenant kept pets, the tenant may be responsible for pest control at the end of the tenancy.

If there is evidence that a property was pest controlled when the tenant moved in and it is included in the special terms of the agreement, then a tenant may also be responsible for pest control at the end of the agreement.

If the pests are there due to structural or environmental problems and no fault of the tenant, such as flooding, then it is generally considered the landlord's responsibility.

Some excellent advice here

2011-03-01T16:51:00.001+10:00

A young lady confidently walked around the room while leading and explaining stress management to an audience; with a raised glass of water, and everyone knew she was going to ask the ultimate question, 'half empty or half full?'..... she fooled them all... "How heavy is this glass of water?", she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, that's not a problem. If I hold it for an hour, I'll have an ache in my right arm. If I hold it for a day, you'll have to call an ambulance. In each case it's the same weight, but the longer I hold it, the heavier it becomes." She continued, "and that's the way it is with stress. If we carry our
burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won't be able to carry on."

"As with the glass of water, you have to put it down for a while and rest before holding it again. When we're refreshed, we can carry on with the burden - holding stress longer and better each time practiced. So, as early in the evening as you can, put all your burdens down. Don't carry them through the evening and into the night... pick them up tomorrow.

Whatever burdens you're carrying now, let them down for a moment. Relax, pick them up later after you've rested. Life is short. Enjoy it and the now 'supposed' stress that you've conquered!"

WITHDRAWN FROM SALE

2011-02-18T16:28:00.000+10:00

Agents often hear home owners say: "If I don't get my price, I'm not selling." In many cases home sellers don't have the luxury of holding out for an in-your-dreams figure because they have to sell in order to buy another home to live in. But if the market simply can’t deliver the price, there is often another option for those who have the flexibility to take it on.

In some cases, it is in fact worth it for vendors to hold onto a property rather than selling for less, especially if they have the borrowing power to own more than one property and turn the unsold property into a rental investment income.

Naturally, it is important that they do their sums before making a decision.

Those who are thinking of the rent-and-hold option should consult an accountant or financial planner as well as a real estate agent. They should determine whether the market is stable, climbing or falling – after all, unless prices are on the rise, there is unlikely to be a potential increase in capital gain worth holding out for further down the track. It is important to check out the rental and vacancy rates and the likely income including capital gain against the cost of any loan required to continue holding onto the property.

Many people moving interstate or across the Tasman automatically think “I’m moving so I’m putting my house on the market.” But it is often wise to get to know the state of the market in their new area before letting go of the one they currently live in. Is it possible that property won’t go up as fast in the new location as the old one? Or conversely, might it go up faster? Is the future sufficiently hard to predict that it could it be safer to have a foot in both camps in case they want to return and not find themselves priced out of the market?

Home owners doing the figures and deciding whether it is a better financial choice to hold onto the property rather than sell, should also take into account is whether the property is a good rental proposition. Often high maintenance properties (such as those with pools or large garden) have costs that have to be offset against income. Or the market may not pay the rent the owner thinks it should be worth if it is not the type of property in demand by typical tenants in the area.

Many people buy their first property with the long term strategy that they will never sell. They choose a property that will be suitable as a rental when they upgrade and go on borrowing and buying properties as a means of wealth creation. This does not require high income or great wealth – simply an understanding of the strategy and some good financial advice.

Source

Dispute Resolution & the Tribunal

2011-02-10T08:44:00.000+10:00

Where do you draw the line?

We often comment that our role as a property manager should be changed to people manager. Managing the property is the easy part of our role as the property cannot communicate with us, dispute issues or become irrational. However, people are very good at engaging in these areas.

Many long-term investment owners (through their own personal experiences) will be aware that when managing properties there is often no black and white clarity to an array of challenges that can arise during all stages of the tenancy. Although there is legislation that governs the rights and obligations of the tenant and landlord, there is also a wide scope of grey areas.

It is these grey areas that often lead to disputes and frustration for property owners.

As your managing agent it is important for you to understand that we are focused on working in your best interests to maximise your income and optimise capital growth. There will, however, be times throughout the tenancy where we will need to compromise during a dispute with a tenant and work towards a win/win situation.

If a resolution cannot be achieved with regards to a grey area, then the only course of action we have is to lodge an application with the Tribunal to seek their direction and orders

From experience, this can be a risky alternative for property owners, as the decision for the outcome is often based on how the Tribunal member hearing the case feels on the day or interrupts the evidence presented. When the matter is referred to the Tribunal, the owner of the property is also responsible for the lodgement and hourly attendance costs.

When a dispute does arise it is important to ascertain the dollar value in question, the circumstances and possible outcomes to determine if it is financially viable to pursue the matter. Sometimes it is beneficial to compromise, rather than being focused on just one outcome.

Areas where common disputes can arise:

Tenant request to break agreement
Required maintenance needed at the property
Presentation of the property
End of tenancy bond disputes
Rental increases
Tenancy renewal requests

Should we not be able to resolve a dispute with the tenant you can be confident that we will seek your instructions before taking the matter further.

SELLING A TENANTED PROPERTY

2011-02-04T11:44:00.000+10:00

While many investors still own every investment property they ever bought as part of a self-funded retirement portfolio, there are others who want or need to sell a property because their circumstances – personal or financial - have changed. Is it better to give the tenant notice to quit before putting the property on the market or should they sell it while the tenants are still in place?

The obvious answer is to keep the tenants in residence. This incurs the least loss of income and unless the house is really dirty and untidy, a house usually presents better with furniture and household items making it look lived in.

However, there are times when a tenant in residence could be a financially less rewarding scenario. Tenants who do not want to move can put a lot of obstacles in the way of a sale. They can limit and postpone inspection access almost at whim in spite of legally having to provide ‘reasonable access’ (what is ‘reasonable’ to one person may not be ‘reasonable’ to another). By the time this sort of obstacle is sorted out, valuable time has been lost and many purchasers have moved on. If the market is not trending up, this can result in a lower sale price as the market drops before the property can be sold. Furthermore, if the seller is using the money for another financial project, delays in having the money available could cost them the project or render it more expensive if bridging loans are required.

Disgruntled tenants can also highlight the property’s faults in order to put off prospective purchasers and while many owners are happy to absent themselves from the property to allow the agent to show the purchasers around at their leisure and improve their selling prospects, tenants have no such motivation to leave the property and many reasons to stay watchfully present.

Sometimes property owners have no inkling that tenants will behave badly in the event of a sale, but there is a bit of basic research investors can do to try and determine whether their tenants will play ball. Ask your agent how easy it has been for the agent to get access for periodic maintenance inspections or for tradespeople who have been contracted to carry out work on the property. Tenants who have been slow to concede access for activities such as repairs that will benefit them are highly unlikely to come to the party when they think they will ultimately lose their home to a successful purchaser.

Banks now less desperate for deposits

2011-01-27T16:36:00.000+10:00

ONLY two of the top online savings accounts have passed on the Reserve Bank's November interest-rate rise in full, suggesting the deposit war between the banks is losing intensity.

Bankers have argued that the high cost of raising deposits left them with no choice but to push through lending rates above official moves by the Reserve Bank.

But some of the most aggressive online banks, including Commonwealth Bank-backed Bankwest, Citibank and National Australia Bank's UBank, have held on to most of the November 25-basis-point official rate rise, according to figures supplied by rate-comparison service Mozo.
From today, Virgin Money, which previously had the second-highest interest rate offer in the market, will cut its promotional rate by 24 basis points to 6.51 per cent. In addition to holding on to the RBA rate rise, this equates to an effective rate cut of 49 basis points across its savings accounts.

The Age...more

VENDORS BRIDGE EXPECTATION GAP

2011-01-14T11:26:00.000+10:00

There are many reasons why vendors’ expectations are higher than the market indicators suggest. A few vendors have unrealistic expectations of what the market will bring, some have held out too long for a non-existent top dollar and have lost the momentum of marketing, others simply misunderstand that the market responds to supply and demand and as such, prices are not theirs to dictate.

Most vendors who receive offers lower than the price they have originally set their hearts on find the experience a confronting one. While some readily understand the relationship between timing and price in achieving the best sale outcome for their property, others find it really difficult to accept any variation in the price they have decided on and find it hard to understand that the longer the property takes to sell, the less chance they have of achieving a higher price.

It may help vendors to bridge the expectation gap if they realise that purchasers too have a price they think the property is worth; just as some vendors have to lower their expectations, purchasers too often have to lower theirs – or raise the price they’re prepared to pay. The good news is that most vendors end up getting a price they are ultimately happy with – which is not the same necessarily as getting what they first hoped for. They come to accept that the emotional value that they place on their years of living in the property is simply not capable of being passed on to incoming purchasers who are making their comparisons and looking for value for money.

To help with the decision making process when an offer is disappointing, vendors should ask their agent to provide facts and figures from past sales of similar properties. They need to be scrupulously impartial when making their comparisons (They should ask themselves questions such as: ‘Is the fourth bedroom really a bedroom or would it best be described as a sunroom or a study. If I were the purchaser, what would I call it?’ or ‘Is the driveway steeper than a similar house that sold down the road for the price I want?’)

Source: http://www.localpropertynews.net/

DO YOU REALLY NEED A BIGGER HOUSE?

2011-01-06T14:31:00.000+10:00

The end of one year and the beginning of the next is the time when many people make serious lifestyle decisions such as moving to a bigger house. Australian Bureau of Statistics figures show the average floor area of new Australian homes has hit a record high of 214.6 square metres in the 2009 financial year, while the average floor area of freestanding houses is just above 245 square metres. This is ‘normal’ isn’t it? Doesn’t it happen in every developed country?

In fact, the answer is emphatically ‘No’. New data from the Australian Bureau of Statistics (ABC News Monday November 30 2009) indicates that new homes across Australia are bigger in square metre terms than anywhere else in the world.

Newly built Aussie homes are 7 per cent bigger than those in the US, double the size of those in Europe, and triple the size of those in the UK.

It means that Australian homes are around a third bigger than what they were 20 years ago and 10 per cent bigger than a decade ago.

The director of the Institute for Sustainable Futures at UTS in Sydney, Professor Stuart White, says he is worried by what is happening.

Professor White says too many Australians aspire to larger housing simply because they are concerned about their status relative to the rest of the community.

While it is true that many of us need to trade up to a bigger property as our families expand or our lifestyles change, it is also true that clutter can expand to fill the spaces we provide for it and give us the sense that we are being crowded out of our own homes.

So if we don’t move to a bigger house, what other solution is there?

In fact, people tend to fill big homes with bedrooms that are never slept in, fireplaces that are never lit and wardrobes and spare rooms full of hoarded clothes that even the Op Shop wouldn't want. But many of us put off the challenge posed by smaller homes as we don’t want to be forced to choose which items to keep, and which to discard.

While we all dread the de-clutter challenge, we have probably all experienced the frustration of too much ‘stuff’ – the irritation of knowing we have something tucked away in a cupboard or drawer that we just can’t find. Absurdly, we often go out and buy a replacement object and store it somewhere equally ‘safe’. Many things we intend to re-use have perished, dried out or are otherwise unusable by the time we need them again. Try going through your medicine kit and see how many out-of-date medications you are holding onto! Feeling free to discard or re-cycle items which in your heart of hearts you know you are unlikely to need again soon enough means that the items you do retain are easy to find and the stress of unmanageable clutter drops away.

In fact, big houses are not always all they are cracked up to be; they are energy guzzlers that impact heavily on the environment and come with huge cleaning and maintenance schedules and heating and cooling costs. De-cluttering, on the other hand, promotes clear and decisive thinking and reduces stress and anxiety.

If you decide you can’t bear to face the de-clutter on your own, consider employing an expert to help you assess what is worth keeping and what isn’t and how best to organise what you have., www.lessmess.com.au andwww.organisedclutter.com.au are 2 websites offering professional consultants with specialist knowledge in how to create space and reduce clutter.

Regularly removing the clutter from your life will make your life more efficient and less stressful. You never know, maybe it will also keep you from making an expensive and time-consuming move to a bigger home. You can always use the extra money you could borrow to fund an investment property!

source: Local Property News

POST XMAS AND NEW YEAR Money Saving Tips

2010-12-23T12:15:00.000+10:00

With Christmas, present buying, holidays and celebrations behind us, many home owners and investors are now faced with ‘The Bill – or credit card debit’ to manage in conjunction with mortgage payments.

Many will agree that the last 12 months has been very challenging with regards to the economy, job security and property investment in general.

Our property management team is aware and understands the pressures that such an economy can place on property investors and tenants, and it is our priority to place a high importance on ensuring that rents are paid on time, that we obtain competitive maintenance quotes and that we carefully manage preventative maintenance and renovation costs to assist in alleviating your financial pressures.

As a value-add to our property investors, we have taken the time to research the Top Money Saving Tips for this month’s newsletter.

Make it your 2011 New Year’s resolution to action our ‘To-do’ list

ü Money Saving To-Do Tips

Number 1# Tip is to not avoid financial pressures

Establish a budget outlining your income and expenses
Establish a property maintenance plan and budget to cover the unexpected need of a new hot water system, oven or stove, and don’t forget to allow for renovations and improvements, such as carpet replacement, painting and new curtains, etc. Make sure you put a little extra away each month for these costs
Review your home loans
Can you get a better rate elsewhere? Is it time to fix your rate? Do you want to split the mortgage to fixed & variable? Can you align your repayments with your pay day or income cycle to minimise interest?
Pay your wage/s into your home loan to reduce your monthly interest
Establish a line of credit or redraw facility on your home loan. Transferring your credit card debt to your home loan can greatly reduce credit card interest charges
Review your car insurance
Review your house insurance
Review your phone, mobile, and Internet phone plans

By reviewing your insurance policies and ensuring you are on the best plans can save yourself $1000s.

Before making any financial decisions about the management of your finances, we strongly recommend that you consult your accountant, financial manager or bank manager to determine the most effective way to save money for your situation. ■

Merry Christmas to All - Holiday Security Tips

2010-12-21T12:21:00.000+10:00

Christmas is a time to rejoice, let your hair down and enjoy the company of family and friends.

If you are planning to be away from your home over this period we would like to remind you of some thought-provoking holiday security tips.

Keep Christmas trees and presents hidden from the outside view Remove all ladders and climbing objects from around the house Notify neighbours that you are going away and have them collect your mail/newspapers Leave a light on inside Hide all money, jewellery and valuables Don’t hide a key outside your property or leave notes – Be Safe!

The Team @

David Deane Real Estate

WE'VE MOVED !!!

2010-12-15T21:12:00.000+10:00

We have moved to our brand new, custom built showroom at

2 Dixon Street (Cnr Gympie Road) Strathpine.

Opposite Westfield Shopping Centre

We see our move as a launch pad for amazing client service and results to delight both sellers and landlords.

Please feel free to call in for a look around and a coffee.

Please note there will be disruptions to our telephone, fax and email services on Thursday 16th and Friday 17th December.

We hope to see you soon.

The Team at

David Deane Real Estate

Christmas Real Estate comment ...

2010-12-10T10:25:00.000+10:00

Sales are being made – buyers have not gone away.

"A Tumultuous year" would be our best description of 2010. The continuing financial crisis, ridiculous charges for utilities (water, power, petrol, food costs) have contributed to more market uncertainty and wanning confidence for many. The election fiasco and ending the subsidised home grant all contributed.

WHAT AN OPPORTUNITY FOR THOSE WHO HAVE TAKEN ADVANTAGE AND GRABBED SOME GREAT HOMES AT EXCELLENT PRICES. BARGAINS WILL NOT BE AROUND FOR EVER, OPPORTUNITY KNOCKS NOW.

It’s always these canny buyers who make big returns from residential homes over the long term. They will lead the next boom with capital gains and low payments, the stuff from which great stories start. Interest rates have never been so low for so long. We believe those that lock in rates now will not only sleep well but be well placed as rates continue to rise to pay mounting governmental debt on all levels. It really is time to eliminate one tier of government, as we simply can’t afford to continue to shovel money into these bottomless pits. Governments on all levels need to re-address theIR roles, basically to provide utilities, health, security and education at the lowest price possible. All other areas of focus are no more than fanciful political diversions.

Local Buyers will find the task of finding the right homes a lot easier on www.daviddeane.com.au our award winning website which is updated daily. Everything listed is really available correctly priced with all contracted homes marked accordingly and removed when settled.

The local market is certainly over supplied at the moment or is it? Within 5kms of Strathpine there are 1200 homes listed for sale, with only 15/20 selling each week. Add to this 100 new listings each week and the buyer absorption rate blowing is out to almost two years supply. That’s the bad news…

The good news is that less than 15/20% of homes listed represent buyer value, and they are obtaining significant inspections, offers and selling. Make no mistake there plenty of buyers for well-priced well presented homes. We have 500 active buyers registered with our team, now.

Many sellers are chasing prices that were obtainable last year but are overpriced today by generally 10/20%. It is a very tough decision to loose money from the original purchase price but sometimes the early loss is the best. If nothing else the share market has taught us that.

This is a market for high negotiation skills and determination by sales people. The weak ill-informed will not be around next year to talk up listing prices to dream levels, over promise and under deliver. The team at our office has been training for ten years to handle a market like this and are ready to get sellers sold. Our record and figures speak for themselves.

Finally thankyou to the thousands of sellers, buyers, landlords and tenants who have selected the team at David Deane real estate to complete their real estate transactions over the 2010. So many of you have given us glowing references which we are very proud to receive, thank you.

2011 sees us open the first ever purpose built real estate showroom on the northside of Brisbane. It provides excellent facilities for clients and staff never before seen. We see our move as the launch pad for amazing client service and results to delight both sellers and landlords. Please feel free to call in for a look around and a coffee. Seasons greetings from all our team may we all spare a thought for those families doing it tough along with our forces overseas.

David K Deane

Principal

HOLIDAY SECURITY CHECKLIST

2010-12-07T10:54:00.000+10:00

Is yours one of the few houses in the street with an alarm, dog or well-secured doors and windows or where the occupants come and go at irregular times? Then give yourself a big tick for offering the least opportunity i.e greatest opposition or risk to aspiring thieves. But if you were going away this Christmas you might want to make your home even less attractive to opportunistic thieves by using this holiday security checklist.

Firstly, try to think the way the thieves do. Does your home look neglected, abandoned, unused? Make it look occupied by carrying out the following activities

Leave a light on inside if you intend returning home after dark. The light should be visible from the street and give the impressions that the house is occupied. Consider using an automatic lighting timer.
Never leave notes on your door. Thieves can read too.
Keep blinds and curtains partly open to give the house a "lived in" appearance if you are gong away for some length of time.
Cancel all regular deliveries, e.g. newspapers so the stockpile doesn’t give the game away.

Ask a friend or neighbour to keep an eye on your home and collect any other deliveries which may be made during your absence.

Ask the Post Office to hold your mail.

Ask a friend or neighbour to park a car in your driveway from time to time.

And remember to make things tough for anyone who has the temerity to have a go.

Lock away all portable garden equipment, tools, ladders or anything that could be used to break into your house.

Securely lock your garage; most breaking-in implements are found there.

Lock all doors and windows.

Take your keys or leave them with a friend. Do not hide them.
Remove all money and valuables to a safe place such as your bank.

Notify your local Police of your absence.

Have a great Christmas holiday.

source

RENTS TO RISE AS HOME BUILDING SLOWS

2010-11-16T16:11:00.000+10:00

Tenants in Sydney, Perth and Brisbane are likely to be slugged with annual rent increases of up to 7 per cent over the next two to three years.

Housing analysts have forecast rent rises across all Australian capital cities as new home construction fails to keep up with demand, home borrowing stabilises at weaker levels and the population continues to grow.

Economic forecaster BIS Shrapnel says renters will have to get used to annual increases of between 5 to 7 per cent in Perth, Brisbane and Sydney, and 3 to 5 per cent in Melbourne, Hobart and Adelaide over the next 24 to 36 months.

BIS Shrapnel analyst Angie Zigomanis said new dwelling construction had not been adequate over the past 12 months.

‘‘We expect rental growth to pick up again,’’ Mr Zigomanis said.

‘‘The last 12 months has shown marginal rental growth, but we expect that to get closer to the mid-single digits over the next few years.’’

As the economy picks up, any vacant rental stock should become ‘‘pretty rapidly filled,’’ Mr Zigomanis said.

read more

WESTPAC, NAB COMPLETE RATE RISE QUARTET

2010-11-12T16:25:00.000+10:00

Westpac has joined the other three major banks in raising mortgage rates more than the Reserve Bank with a 35-basis-point increase.

The move came just over an hour after National Australia Bank raised its standard variable mortgage rate by 43 basis points.

While Westpac's increase is the smallest of the big four, it still has the highest standard variable mortgage rate.

The standard variable mortgage rates for the big four banks are:

NAB - 7.67 per cent
ANZ - 7.80 per cent
Commonwealth - 7.81 per cent
Westpac - 7.86 per cent

Read more...

'URGENT' REPAIRS

2010-11-09T12:52:00.000+10:00

Most tenancy agreements state that the owner of the rental property is obliged to conduct ‘urgent repairs’ as they arise. What constitutes an ‘urgent’ repair and what happens when landlords try to ‘save money’ by refusing to carry it out?

Throughout Australia and New Zealand, landlords as well as tenants are subject to residential tenancy legislation. For example, in QLD landlords have to keep the property in good condition, they are obligated to lodge the bond with the Rental Bond Board, and there is a limit to the amount of bond that can be charged.

Urgent problems are usually defined as those that radically reduce the tenant’s ability to live in a property, such as a dangerous electrical fault, or serious infestation leading to large-scale structural damage.

A rental property owner who does not see to urgent repairs is asking to pay more for repairs in the long run as tenants have the right to hire qualified trades people to carry out urgent work and send the bill to the owner of the property. It is unlikely that a tenant will shop around for the best price, since ultimately the cost is legally payable by the owner.

Always remember to check with an experienced local property manager to make sure you are complying with all governing legislation and regulations.

http://www.localpropertynews.net/

iPhone service

2010-10-21T20:21:00.001+10:00

iPhone news. All our office uses an iPhone. Mine died today, so I drove 15km to the nearest apple shop.
"No sir we can't help you today, we can make an appointment to check it out for NEXT wednesday". Ok I can use an old one in the meantime, but how hard can it be to change a battery?
Well can I leave it with you? NO! (Then the entire staff clapped someone who had just purchased a computer).
Thanks apple that's rotten service.

Why are rents still rising?

2010-10-19T11:45:00.000+10:00

Last year rents in many parts of Australasia rose more than at any time for the last half a decade – and it seems they are still rising. This is because landlords have to pass on their rising costs to tenants, isn’t it?

It’s certainly true that many people find this explanation for rent increases plausible. However, this argument doesn’t actually look at the deeper issues involved in rent movements.

After all, if landlords can pass their costs on, why do they complain about them so much? The truth is that experienced landlords know they can’t pass their costs on unless tenants are prepared to pay for them.

The important concept behind preparedness to pay is the real reason for rent fluctuations – up or down – and that is supply and demand.

During the recent housing boom, investors put money into new apartment blocks and supply was at least keeping pace with demand and probably exceeding it, with the result that rents stayed low because competition amongst landlords to get tenants was high. In other words, the rental market belonged to the tenants. The investors who bought the apartments weren’t so worried about rental income because they could see high capital appreciation just around the corner if they decided to sell in a few years.

As the boom came to an end, many investors turned to other forms of investment, taking their money out of real estate and building fewer apartment blocks. Thus the supply of rental apartments gradually dwindled, but – you guessed it - the demand for accommodation kept growing. This growth actually increased above its normal rate because fewer first home buyers were going into the market because they couldn’t cope with the high interest rates and the price of homes.

Landlords could finally raise rents without fear of losing tenants because finally it had turned into a landlords’ market. And naturally they could afford to ‘pass on’ any extra ‘costs’ or whatever explanation they want to use to justify the rent rises that followed. But the truth is, the only reason they can ever afford to raise rents is that there are more people wanting to rent a property than property available.

Source: http://www.localpropertynews.net/

Who is making sales locally?....The REAL Story

2010-10-05T12:32:00.000+10:00

Source: Published house sales on realestate.com.au,
collated by markettracker each week.

The 10 Common Mistakes That Cost Homesellers Thousands of Dollars!

2010-09-30T16:15:00.000+10:00

Selling your home can be a nerve racking, exhausting experience. Last minute calls, inconvenient showings, price adjustments, and the uncertainties of being stuck with a house that doesn’t sell for months on end can all take their toll. If you are not completely prepared you could end up losing thousands of dollars in profit!

The difference between a profitable, smooth transaction and a miserable experience is often a fine line. The majority of home selling nightmares are caused by a lack of knowledge. This report is designed to make you aware of the 10 common mistakes that

cost sellers serious money.

1. IMPROPER PRICING - Set the price too high and it will sit unsold and develop the

identity of a problem property, with the accompanying stigma of what real estate agents

call a "stale listing." On the other hand, price it too low and you may give away

thousands in profit to a total stranger. Either way you lose. Setting the appropriate price

involves the evaluation of numerous different factors...and it's critical!

2. NOT PROVIDING EASY ACCESS - Accessibility is a major key to a profitable sale.

A lock-box is best, while appointment-only showings are most restrictive. The more

accessible your home, the more showings, and the better the odds are of finding a

person willing to pay top dollar. In today's competitive market, buyers who can't get a

viewing will go on to other homes, and purchase elsewhere.

3. BAD HOUSEKEEPING- The prospective homebuyer's first impression is the most

important. An unbelievable amount of home sales have been lost to unmowed lawns,

cluttered rooms, bad stains, dirty kitchens and bathrooms, unpleasant odors, etc.

Imagine you are the buyer and clean your home from top to bottom...military style.

4. FAILURE TO MAKE REPAIRS - Often even minor improvements will yield as

much as three to five times the repair cost at the time of sale. There are literally

thousands of homes for sale, and buyers buy what they see. Seemingly small fix-up

jobs can make the difference between a closed sale at top dollar and a home that

languishes on the market for months on end.

5. POOR SHOWING TECHNIQUES - Your home should be neat and clean, but that's

just the beginning. There are lots of little details that make a big difference. Knowing

exactly what to say and do when buyers come through your home is crucial.

6. RELYING ONLY ON TRADITIONAL SALES METHODS - Sellers who are

innovative and willing to offer new strategies of attracting homebuyers will always

outperform those who rely on traditional methods. Today’s market demands around the

clock advertising exposure, and response-generating marketing techniques.

7. MAKING SELLING DECISIONS BASED ON EMOTION- You must realize that

selling your home is a dollars and cents business transaction. Don't let your emotional

ties to your home affect your judgment. Remember, purchasers are not buying your

home, they are buying a house to make into their home.

8. FAILURE TO UNDERSTAND MARKET CONDITIONS - Just like the stock

market, there are current market conditions for houses as determined by supply and

demand. Many buyers shop dozens of homes comparing values, so it is very difficult to

find a buyer willing to pay more than current market value. No single person, firm, or

agent has any control over the market!

9. WASTING TIME WITH UNQUALIFIED PROSPECTS - Countless hours of

valuable time can be wasted showing and negotiating with "buyers" who can't buy no

matter how much they love your house. Buyers should be pre-approved for a loan

before you begin dealing with them.

10. PICKING THE WRONG REAL ESTATE AGENT - The vast majority of all homes

are sold by real estate agents, but all agents are not the same - not even close. The

agent's experience, knowledge, and marketing plan can have a huge impact on your

success. Signing up with the right agent can make all the difference in the world.

Don’t fall victim to these costly errors!

Being armed with the right knowledge can make all the difference in how your home

sale turns out. Make the right decisions. A little time spent now can save many hours of

frustration down the road!

Market Comment - October 2010

2010-09-27T15:21:00.000+10:00

We are now starting to feel like spring with the warmer weather. Despite this the sales market has been slow to shake off the winter chills. We are working harder than ever to get owners sold and on their way to new destinations. Many of them have adjusted their prices to attract buyers, some great buying at present.

There remains almost 10 months supply of houses on the market within 5km of our office.Many of the 1100 homes listed for sale are well over priced, by over ambitious agents who are not only short of sales but listings as well ( we promise the truth based on current facts).

Although sales numbers have been reduced our team have gained significant market share this quarter. We are leaving no stone unturned to get our sellers 'sold' at the highest price possible. This has meant a review of marketing, skills and fine tuning of our negotiating skills. We are also very fortunate to have a large local client base who we keep informed very regularly.

It is hard for anyone to make a balanced decision when almost every agent claims to sell more, be No#1 or specialise in your home. Sellers are being bombarded with telemarketers, letters and newsletters chasing the 'listing' at any cost.

Now here is the truth about who is selling what locally, I hope it helps:

As you can see there are plenty of local agencies having a really tough time many with less than 1 sale per month.

Real estate today is complex balance of legal minefield, technology, information, high skills and strong negotiation skills fine tuned over many years experience. It is no place for anyone not 100% committed to client excellence.

Our rental team is also working well despite increased numbers available. We now have six full time certified property managers strongly led by co-director Belinda Johnston.

We are well and truly ready for our new show room at 2 Dixon st, right beside Westfield. Our craftsman are on the home straight finishing off inside. It will be the premier real estate facility on the northside of Brisbane.

SMART INVESTORS THINK IT THROUGH

2010-09-23T12:36:00.000+10:00

Many inexperienced residential property investors start talking about selling their investment property when the market slows down. After all, the market is bad, therefore it’s time to get out of the market – right?

Wrong! Is the investor going to realise a good return on their investment by selling when the market is slow? Of course not! Shrewd investors – whether they invest in the stock market, antiques, art or property – have a more fruitful strategy. When the market is low is the time to borrow more money and buy a second property. Selling now will be a poor return on their investment, but buying now means greater rewards when the market does improve. After all, experienced investors know that the market is cyclical They know that when the market is hot is the worst time to buy as buyers tend to outnumber sellers and they end up competing for stock that is snapped up at alarmingly increasing prices. In fact they may well profit from the faulty logic of the inexperienced property investor by buying the very investments being dropped onto the slow market by the less experienced who think property is no longer the go.

When the market slows down, the smart investors speed up, so that they are expanding their property portfolios when the market is in their favour inorder to be sitting pretty when the next boom comes along.

http://www.localpropertynews.net

TRUST YOUR LUCK

2010-09-16T08:55:00.000+10:00

Many home buyers get all excited when they find a property they like, make an offer and get it accepted all in a short time frame. They think all their Christmases have come at once. Or do they?

After the initial exultation, many buyers spend sleepless nights wondering if they have made the right choice. After all, it was a bit too easy wasn’t it? Maybe they have paid too much? Surely they must have missed something. Something must be wrong with the property.

Buyers’ remorse is not uncommon, and is based on self-doubt stemming from the stress involved in spending so much money on a transaction home owners undertake (usually) only a few times in a lifetime.

Buyers should always put in place the necessary checks (building and pest reports for example) but those who get their longed-for property purchase wrapped up quickly should think themselves lucky that they struck a motivated and realistic vendor when so many have an inflated sense of what their property is worth.

http://www.localpropertynews.net/

THE ASPECT AFFECT

2010-09-02T15:37:00.000+10:00

There are many variables that affect the sale price of a property. Not all homes that look the same sell for the same price. Even when they seem to be equal (size, condition, features), some homes just seem to sell for more. What is the difference?

A young recent arrival from France rented an apartment in Sydney. She complained that the property had no light and was dull all day and of course, never got any sun. She said she had made sure to choose a property that faced south so why was this happening? The look of consternation on her face when she realized that southern hemisphere rules regarding aspect are different from northern hemisphere ones was the best demonstration anyone could hope to see of the importance of that elusive variable that has a demonstrable impact on the sale price of homes – aspect.

Unfortunately, many people whose homes are not ideal in terms of aspect overlook this when setting the asking price of their homes. There aren’t many buyers who come from overseas bringing with them northern desirability criteria for aspect. Most buyers have northerly aspect on their wish list, and will only drop it from the list if the price is right.

www.localpropertynews.net

August agent sale contracts

2010-08-29T20:54:00.000+10:00

It's Ekka Time!!

2010-08-05T12:06:00.001+10:00

By Claudia Johnston

SELLING A TENANTED PROPERTY

2010-07-30T11:26:00.000+10:00

However, there are times when a tenant in residence could be a financially less rewarding scenario. Tenants who do not want to move can put a lot of obstacles in the way of a sale. They can limit and postpone inspection access almost at whim in spite of legally having to provide ‘reasonable access’ (what is ‘reasonable’ to one person may not be ‘reasonable’ to another). By the time this sort of obstacle is sorted out, valuable time has been lost and many purchasers have moved on. If the market is not trending up, this can result in a lower sale price as the market drops before the property can be sold. Furthermore, if the seller is using the money for another financial project, delays in having the money available could cost them the project or render it more expensive if bridging loans are required.

Disgruntled tenants can also highlight the property’s faults in order to put off prospective purchasers and while many owners are happy to absent themselves from the property to allow the agent to show the purchasers around at their leisure and improve their selling prospects, tenants have no such motivation to leave the property and many reasons to stay watchfully present.

Source: Courtesy of www.localpropertynews.net

Recruitment Career Night

2010-07-27T14:32:00.001+10:00

CONGRATULATIONS to Adrian Dickinson of Bray Park!!

2010-07-22T12:07:00.000+10:00

CONGRATULATIONS to Adrian Dickinson of Bray Park! Adrian and his band RVLR were selected from 100 entries to perform at SPLENDOUR IN THE GRASS later this month!

This is a huge opportunity for Adrian and his band to be seen and move up in the music industry! Congrats again Adrian and band! We wish you all the best!

Adrian and his partner Tanya recently purchased a property in Bray Park through David Deane Real Estate.

Morton Bay Rate Payers Action Group

2010-07-12T15:38:00.000+10:00

Finally we are seeing the people rise up and challenge the excesses of governments on all levels, and we salute their efforts.
'Working families' are hurting from the never ending parade of governmental tax and basic charge increases. Pretty much all essential utilities are in freefall. Water is just one, but aligned to power, petrol, gas and rates it has gone too far. Its time for all governments to cut their endless wastage and imposts on the orderly flow of our community. If they cannot account for the waste its time to handover to someone else. Its not just charges and taxes its the provision of essential services which has deterioted to to such a poor level given the record taxes we paying.
We have a great country which is being driven back into the dark ages by bad government and self serving politicians, who focus only on re-election, with little or no leadership accumen.
We encourage all stakeholders to join the revolt and lend real support to the residents action group. Make no mistake these incompetents are not wasting millions they have graduated to billions. A billion is an awful big number?

TIP: Negotiating Tenancy Terms

2010-07-09T10:00:00.000+10:00

When letting rental properties most associate the term period to a six or 12-month tenancy.

There is no law that states that you can only enter into a six or 12-month tenancy.

It can often be prudent to negotiate an eight-month or 11-month tenancy to maximise your income.

If your property has a pool and you are renting the property in January you would not want to enter into a six-month tenancy as the property may become vacant in winter, making it more difficult to secure a tenant.

It is also financially beneficial to try and have the tenancy agreement expire during a high tenant-demand period (such as January or February) to reduce vacancy periods and obtain the highest possible rent.

When negotiating tenancy terms our office will take into consideration all of the market conditions to ensure that we are entering into an agreement that will maximise your income. ■

HOW TO SUSS OUT A GOOD LOCATION

2010-07-03T10:55:00.000+10:00

What do most experienced investors say about where to buy? Are a ‘good’ suburb and a ‘good’ location interchangeable terms?

Real estate investors need to distinguish between ‘good’ in terms of ‘classy, expensive, elite’ and ‘good’ as in ‘llikely to go up in value’. While ‘good’ suburbs in the classy sense are also ‘good’ in the sense that they are likely to go up in value, there are many not-so-classy suburbs where the prices are more accessible for starting investors that will experience capital growth (on a percentage basis) just as fast as their more elegant cousins.

So what exactly do estate agents, investors and experienced home buyers mean when they agree that a location is a ‘good’ one for capital gain?

Experienced investors usually look for proximity to services or potential services such as transport, schools and other amenities, as well as areas of employment.

Those who want even more support for their choice often analyse demographic trends so they can pinpoint areas of future housing need. For example it is possible to work out how many people in any given year are reaching what statisticians call the formation age. Those born twenty five years ago are now statistically ready to enter the housing market, either to rent or to buy - obviously creating demand. Investors should look at the history of the cycle of supply and demand for their chosen area and understand how this pattern relates to housing cycles generally.

http://www.localpropertynews.net/

Experienced investors who understand the housing supply and demand cycle buy when the market is low. Yet this is the very time when many novice investors decide to sell their one and only property and invest somewhere else.Successful investors not only hold on to their property long term thereby maximising gain and income/cost ratio, they buy more properties whenever their accountant or financial adviser gives them the go-ahead.

Another location investment indicator is rental vacancy rates. Areas where vacancies are low are not only likely to provide secure rental income but should also deliver good capital gain; prices increase because of demand from investors attracted to the rents and renters who are motivated to buy.

In fact, no single indicator tells the whole story. As in any other field of human endeavour the luck factor can be minimised if people know that there are several indicators to consider. It also pays to seek advice from a wide range of sources: accountants, real estate agents, financial planners and other investors.

DOES YOUR HOME HAVE HIDDEN QUALITIES?

2010-06-25T10:41:00.002+10:00

Many home sellers forget that their home is more than meets the purchaser’s eye. They no longer remember that behind the smart décor there is attention to detail and quality workmanship. But these features often cost a lot even though they aren’t immediately apparent to purchasers. Could they add value to a home?

Most purchasers like to take their time to compare properties for sale before making a decision, so making sure your agent has access to information about even the improvements that aren’t obvious and visible may not only add dollars to the price of your home, but also determine a purchaser’s choice in favour of your property over the one round the corner. There are very few purchasers who don’t gravitate to good workmanship or attention to detail in maintenance. It’s true that in a very active market, purchasers often make their decisions based only on a quick analysis of the major features of the home; they don’t have the time to pay attention to detail because they will lose the property to a buyer who is prepared to move faster. When the market slows down, however, they have a lot more time to be fussy about even the smallest details in the effort to ensure they are making a good buy.

http://www.localpropertynews.net/articles/sellers-buyers/20100601_hidden_qualities.htm

Hidden improvements can include things like insulation, sound-proofing, plumbing and electrical work, soil improvement and so on. Purchasers often use this kind of information simply to help them to confirm their soundness of their choice; the quality of the maintenance and attention to detail makes them feel comfortable and secure in the knowledge that their choice is a sound one.

Most agents will prompt vendors to tell them about the improvements they have made over the years, but it is a good idea to have a list ready for the agent’s very first visit, in case you forget something. It also helps the agent to accurately appraise the value of the property in the first place.

DOES YOUR HOME HAVE HIDDEN QUALITIES?

2010-06-25T10:41:00.000+10:00

http://www.localpropertynews.net/articles/sellers-buyers/20100601_hidden_qualities.htm

DOES YOUR HOME HAVE HIDDEN QUALITIES?

2010-06-25T10:37:00.001+10:00

The Race - a self esteem poem

2010-06-18T11:30:00.000+10:00

attributed to Dr. D.H. "Dee" Groberg

Whenever I start to hang my head in front of failure’s face,

my downward fall is broken by the memory of a race.

A children’s race, young boys, young men; how I remember well,

excitement sure, but also fear, it wasn’t hard to tell.

They all lined up so full of hope, each thought to win that race

or tie for first, or if not that, at least take second place.

Their parents watched from off the side, each cheering for their son,

and each boy hoped to show his folks that he would be the one.

The whistle blew and off they flew, like chariots of fire,

to win, to be the hero there, was each young boy’s desire.

One boy in particular, whose dad was in the crowd,

was running in the lead and thought “My dad will be so proud.”

But as he speeded down the field and crossed a shallow dip,

the little boy who thought he’d win, lost his step and slipped.

Trying hard to catch himself, his arms flew everyplace,

and midst the laughter of the crowd he fell flat on his face.

As he fell, his hope fell too; he couldn’t win it now.

Humiliated, he just wished to disappear somehow.

But as he fell his dad stood up and showed his anxious face,

which to the boy so clearly said, “Get up and win that race!”

He quickly rose, no damage done, behind a bit that’s all,

and ran with all his mind and might to make up for his fall.

So anxious to restore himself, to catch up and to win,

his mind went faster than his legs. He slipped and fell again.

He wished that he had quit before with only one disgrace.

“I’m hopeless as a runner now, I shouldn’t try to race.”

But through the laughing crowd he searched and found his father’s face

with a steady look that said again, “Get up and win that race!”

So he jumped up to try again, ten yards behind the last.

“If I’m to gain those yards,” he thought, “I’ve got to run real fast!”

Exceeding everything he had, he regained eight, then ten

but trying hard to catch the lead, he slipped and fell again.

Defeat! He lay there silently. A tear dropped from his eye.

“There’s no sense running anymore! Three strikes I’m out! Why try?

I’ve lost, so what’s the use?” he thought. “I’ll live with my disgrace.”

But then he thought about his dad, who soon he’d have to face.

“Get up,” an echo sounded low, “you haven’t lost at all,

for all you have to do to win is rise each time you fall.

Get up!” the echo urged him on, “Get up and take your place!

You were not meant for failure here! Get up and win that race!”

So, up he rose to run once more, refusing to forfeit,

and he resolved that win or lose, at least he wouldn’t quit.

So far behind the others now, the most he’d ever been,

still he gave it all he had and ran like he could win.

Three times he’d fallen stumbling, three times he rose again.

Too far behind to hope to win, he still ran to the end.

They cheered another boy who crossed the line and won first place,

head high and proud and happy -- no falling, no disgrace.

But, when the fallen youngster crossed the line, in last place,

the crowd gave him a greater cheer for finishing the race.

And even though he came in last with head bowed low, unproud,

you would have thought he’d won the race, to listen to the crowd.

And to his dad he sadly said, “I didn’t do so well.”

“To me, you won,” his father said. “You rose each time you fell.”

And now when things seem dark and bleak and difficult to face,

the memory of that little boy helps me in my own race.

For all of life is like that race, with ups and downs and all.

And all you have to do to win is rise each time you fall.

And when depression and despair shout loudly in my face,

another voice within me says, “Get up and win that race!”

THINK LIKE AN INVESTOR

2010-06-08T14:58:00.000+10:00

While it’s unlikely that experienced home buyers will buy a home that they don’t like, the same is not true of experienced property investors. Yet many novice property investors report that they have difficulty buying something they don’t ‘like’ even if it is a good sound investment.

Many investors make it harder for themselves than they need to by being unnecessarily emotional about their purchases. They see their investment properties as an extension of their own home and indulge in the same feelings of pride of ownership. It is not uncommon for novice investors to turn down a property with terrific investment potential and strong rental demand just because they themselves couldn’t live in it. Some end up buying what they consider to be a ‘nicer’ property, only to find that the tenants have different priorities and will choose more basic accommodation in order to be say, closer to amenities or to save on rent. Remember that many renters need to use public transport, and that the proximity of shops, schools and transport may weigh more heavily with prospective tenants than a flash kitchen. Not only that, buying something that you need to charge above median rent for may end up in increased vacancy as tenants (often saving for a home of their own) would rather economise now for benefits further down the track.

The strongest demand for both re-sale and rental is usually, by very definition, around the median price in any marketplace or location. Those who choose to invest in the luxury end of the market are usually the first to be hit by any economic downturn. Much of the luxury rental accommodation available is leased by corporations who, in poorer economic times, can no longer justify the cost of accommodating employees in high rent areas. And high income earners are unlikely to commit to large mortgages or rents in a climate of economic uncertainty with the possibility that salaries or jobs could be under revision.

Median priced properties - those in what you could call middle range of the market - are not as badly affected and usually give their owners the best long term return. If they lose some demand from their usual occupiers because young people move back home or families scale down to smaller or cheaper accommodation, they pick up tenants or purchasers who can no longer afford the luxury markets.

http://www.localpropertynews.net/articles/investment/20100501_think_investor.htm

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GREENING YOUR HOME FOR SALE

2010-05-26T12:54:00.000+10:00

Reducing the energy use of your home and thereby its environmental impact is likely to add thousands of dollars to the re-sale value of your home, especially further down the track. Some prospective buyers may even be put off by homes which have not kept up with energy awareness and where money has been spent on flashy consumer fittings instead. Read the rest of this article for some tips on how to improve the carbon footprint of your home before putting it on the market.

If you are unsure of how much unnecessary energy your home is using, you can get a professional energy audit (google energy audit to find options near you and a comprehensive explanation of the benefits) and utilise the advice of trained home energy consultants who will prepare a personalised home energy savings report including practical advice. Many householders find themselves saving hundreds of dollars a year as well as reducing their carbon footprint by up to 20% - even improving the health profile of their homes e.g. reducing electromagnetic radiation when appliances are turned off after use. Insulating water pipes and water heater, re-sealing around windows, doors, eaves, edges and joints and installing solar lighting outdoors are just some of the things that may improve your home’s carbon footprint and its re-sale value.

If you are in the process of renovating, remember, while many of the ‘green’ features currently available may seem innovative, by the time you sell they may be standard, and putting them in now is likely to be less expensive than retrofitting.

In the kitchen, this means choosing appliances that have a good energy rating and opting for gas cooktops and ovens rather than electric ( a gas cooktop produces half the greenhouse gases of an electric one). Look for ovens with high levels of insulation and triple glazed, low-e coated windows. Remember that fan-forced ovens are 30% more efficient than convection ovens which waste 90% of the energy used.

For water heating, consider that solar, gas and electric heat pump systems produce far fewer greenhouse gas emissions than conventional electric storage systems. Gas-boosted solar is the most greenhouse efficient form of water heating.

For lighting use fluorescent or compact fluorescent lamps – they are energy efficient and long lasting. Avoid using low voltage downlights for general lighting and look for compact fluorescent replacements which are now available.

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Don’t be fooled by price $$$… IT IS NO JOKING MATTER

2010-05-21T15:28:00.000+10:00

When you are looking to sell or rent your property, many smart property owners take the time to do their homework and research the market. They may research prices in the local newspaper, visit national property websites or invite several salespeople or property managers to the property to submit an appraisal.
These activities are all very beneficial to determine the price for a property… BUT “Don’t be fooled by price $$$”. Often the advertised price may not be a true indication of the property’s value.
The property owners may be asking $699,000 or $600 per week rent, but is this a realistic price for the property and a reflection of the current market supply and demand?

The most important information that you need to gather and questions to ask are:
·   How long has the property been marketed and advertised for?
·   What have been the recent prices for ‘sales’ and ‘properties let’?
A property that is not priced in accordance with the market can often cost you money.
If you are selling and need a quick sale an unrealistically priced property can cost you additional interest and lose potential buyers.
If you are renting your property, an unrealistic rent can lead to long- term vacancy periods that can have a greater financial loss to you than the extra $40 per week in rent.
You also need to BEWARE of agents who are prepared to tell you want you want to hear… just to get the listing.
When considering selling or renting your property we strongly recommend that you do your homework, research the market and ask relevant questions in regards to the price.

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Social Media Parenting: Raising the Digital Generation

2010-05-18T15:38:00.000+10:00

Who are your kids friending on Facebook? What are they really texting to their classmates? How much online time is too much?

Too often, parents who are misinformed about the social web (willfully or otherwise) will shut their kids out of it completely, only to find they are logging in anyway. If you’re not taking an active role in your child’s online life, you may be missing important opportunities to ensure they are on the path toward “digital citizenship,” and protected from inappropriate content and people.

To help shrink the tech-culture divide between parents and their kids, we sought advice from the experts, who draw not only from their own research, but their family experiences as well. Keep reading for some valuable wisdom on raising the first fully digital generation.

Take an Active Role, and Do Your Homework

For kids, social media can no longer be dismissed as a time-waster or distraction. The networks your kids use to rate their friends and comment on photos will eventually become their core business tools and career prerequisites. Those who don’t learn to use them responsibly will face a severe disadvantage.

So how do you grant kids the freedom to explore while still keeping an eye on their safety? Start by educating yourself.

“Parents can’t just decide to keep their kids at a distance from all of this. There’s no way to opt out,” said Melissa Rayworth, a freelance writer who tackles parenting and digital issues for the Associated Press, Babble.com and other media outlets. “Parents need to learn about the sites and devices their kids want to use, and then set strong boundaries. If you don’t know what something is or what it’s about, dive in and start using it.”

“If [parents] engage and have their own experiences on Facebook, Twitter etc., they will better understand the attraction, the possibilities, and the issues that their teenagers face,” said Sue Blaney, author, speaker, and teen parenting blogger at PleaseStopTheRollercoaster.com.

One important step, especially when it comes to younger children, is to set up their social media accounts with them.

“Parents should guide their teens through the privacy settings on Facebook and all other social networks on which they participate,” said Blaney. “Make no assumptions here. Instead, invest the time so you can make informed and considered choices about privacy.”

Being a part of the sign-up process from day one will establish you as the gatekeeper of social media, and not a barrier for your kids to inevitably circumvent. You can become part of their online life while learning the ropes yourself.

“Have your teenager show you around the web. Be a ‘curious tourist’ in your teen’s digital world,” Blaney continued. “Ask your son to show you his favorite games, or ask your daughter to share her favorite sites, videos or activities. This can be a pleasant way to engage with your teenager and to learn from her.”

Safety and Privacy

Safety and privacy are probably the two biggest concerns of parents when it comes to social media. While there are some software and profile setting solutions, your greatest asset here is likely education.

We need to teach them as they grow up that ’stranger danger’ exists in the virtual world, as well as the real one — whether it’s the weirdo in our local park or a weirdo following you on Foursquare,” said Giarrusso. “We also need to constantly be hitting home, ‘think before you act online.’ The repercussions can stay with you and be devastating.”

“Many social media sites for young kids only let them post pre-approved phrases, so they can’t divulge personal info, and no one posing as a kid can say anything inappropriate,” said Rayworth. “But at some sites you need to turn those controls on, so definitely explore any site your child wants to use.”

Teens can face a whole new set of safety and privacy challenges on the larger networks, most of which are open to everyone, and are far more public.

“In terms of safety for older kids, every expert I’ve spoken with says, ‘don’t let them have a computer in their room,’” Rayworth noted. “Keeping it in a common space gives you more access to what they’re doing, and a clearer idea how much time they’re spending online. Kids may also make better decisions if they know mom and dad are nearby and can see the screen.

“The complicated thing is figuring out how far you want to go in the name of safety,” Rayworth added. “Some parents aren’t comfortable reading their teenager’s texts or accessing their Facebook messages. Others think it’s important. One option with Facebook is telling your kids that they must friend you … but agreeing that you won’t be posting on their wall or commenting on their posts. Agree to just stay in the background.”

The Fine Line Between Participating and Spying

While it’s important to take an active role in your child’s online life, there are personal boundaries that should be respected and adjusted based on the child’s age, maturity, and earned trust. While public posts on a social network may be fair game, things like e-mail messages and passwords could be considered an important threshold of maturity.

“Parents have a right to have their kids’ passwords, particularly younger teens,” said Blaney. “When teens get into the upper levels of high school, different rules may make sense for teens who prove themselves to be trustworthy.”

Remember, social networks are just that — social. They tend to be an extension of what kids do and say in their “physical” social circles — much of which is not intended for parental consumption.

“During the teen years, they often experiment with various personas. Am I like Britney? Am I like my older cousin Jamie? A teen may change her look, her friends, [and] her activities during this natural and important exploration process,” said Blaney. “It makes sense that some of this experimentation will take place over and through the communication channels that they utilize, including texting and social networks.”

If you’re intruding on your teen’s personal online space, she’s likely to take it underground. Remember, she’ll always be one step ahead of you technologically, so it’s unlikely you’ll win that race. If you’re willing to give up having passwords, you should trust that simply being a part of her online community (from day one, if possible) will be enough to ensure good behavior.

“Be a presence on your teen’s online profile, but in the background,” said Blaney. “Some parents like to post on their kids’ Facebook pages, but that isn’t necessary to do an effective job of monitoring (and may be a real turn-off to your teenager). Often, just letting your teen know that you look regularly is enough.”

Read the complete article from Mashable

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