Ideal time to as­sess port­fo­lio

The Weekend Post - Real Estate - - Front Page -

WITH the end of the fi­nan­cial year ap­proach­ing, it is the per­fect time to con­duct an au­dit of your prop­erty in­vest­ments. Per­haps it’s time to look at sell­ing your cur­rent prop­erty and re­plac­ing it with some­thing that of­fers bet­ter growth, qual­ity or be more tax ef­fec­tive. Maybe it’s time to look at grow­ing your port­fo­lio? How long has it been since you eval­u­ated things? Does your rent level need ad­just­ing? Is your prop­erty in ur­gent need of main­te­nance and should this be done be­fore the end of the fi­nan­cial year or later? How long has it been since you eval­u­ated your prop­erty man­ager and their role in your fi­nan­cial growth – per­haps it’s time for a change. You will al­ready be meet­ing with your ac­coun­tant – make it a longer meet­ing and de­ter­mine if your in­vest­ment is truly work­ing for you and you are claim­ing all the deductions you can. A great many prop­er­ties were never in­tended to be suit­able as in­vest­ments and per­haps your cir­cum­stances have changed. It is worth con­sid­er­ing that if you were to pur­chase a new prop­erty each year for 10 years you would be look­ing at a very com­fort­able re­tire­ment. It can be done. Greg Clyde-Smith, di­rec­tor, Elite Cairns Rentals, Edge Hill and Whitfield A PO­TEN­TIAL fu­ture over­sup­ply of units may have prompted banks to shift their lend­ing cri­te­ria in “risky” post­codes, but as­tute in­vestors are still look­ing to Cairns to nab a city- based bar­gain.

Ac­cord­ing to a Cairns real es­tate direc tor, Kaine Rowe, apart­ments are also look­ing at­trac­tive to empty- nesters want­ing to down­size.

“The ma­jor­ity of units I am sell­ing are go­ing to owner-oc­cu­piers,” Mr Rowe said.

“At the higher end of the mar­ket, it is down­siz­ers want­ing to move from the house in the sub­urbs and at the lower end it is more first-home buy­ers want­ing to en­ter the mar­ket.”

While some banks are call­ing for a 30 per cent up­front de­posit for units in some cap­i­tal cities, lenders are still largely will­ing to sign up buy­ers in Cairns.

“I have en­coun­tered is­sues with buy­ers be­ing un­able to get fi­nance as they have not cho­sen the right lender for the type of apart­ment they are buy­ing,” Mr Rowe ad­mit­ted.

“It is im­por­tant buy­ers get the right ad­vice when they are look­ing to get fi­nance for an apart­ment. Ev­ery bank has dif­fer­ent cri­te­ria when it comes to lend­ing on apart­ments.

“Al­though a buyer may have banked with some­one for years, they may have much stricter rules than some­one else, so it is very im­por­tant to speak to a bro­ker when look­ing to pur­chase an apart­ment.”

He said the num­ber of apart­ments in a com­plex and the zon­ing of a block could af­fect how much a bank was will­ing to lend.

“An­other thing which of­ten be­comes an is­sue is fur­ni­ture,” he said.

“If fur­ni­ture is in­cluded in a con­tract, the val­uer will take off what they per­ceive the value of this to be from the price, which will mean the buyer may have to put more funds to make up this dif­fer­ence.”

Mr Rowe re­cently listed a sev­enth-floor, three-bed­room apart­ment in the heart of Cairns city for $599,000.

The Axis com­plex apart­ment on McLeod St was suited to an owner- oc­cu­pier and boasts sweep­ing views and mod­ern liv­ing, Mr Rowe said.

“Units can of­fer great value for owner-oc­cu­piers and in­vestors alike,” he said.

“For owner-oc­cu­piers, con­sid­er­ing rents are con­tin­u­ing to climb and in­ter­est rates are so low, get­ting out of a rental and own­ing their own prop­erty units are very af­ford­able and of­fer great value.

“With south­ern mar­kets be­com­ing over­heated and re­turns be­ing so low due to high sale prices, the re­turn on our units is be­com­ing more at­trac­tive.”

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