Viewing by month: April 2017

When Is It Time To Sell Your Investment Property? | Century 21

When purchasing an investment property, buying at the right stage in the property cycle is crucial. When to sell investment property, however, is a more complex scenario. Selling investment property depends largely on your personal needs at the time and how each property in your investment portfolio is performing. 

Let’s look at some of the reasons it might be the right time to sell an investment property. 

The market is ripe for high returns 

If you invested some years ago in Sydney or Melbourne, where record house prices are now matched with historic low interest rates, you might consider selling in order to gain a considerable profit while these conditions still apply.

Your investment property is under performing

No matter how carefully an investor considers a property purchase, some just don’t make the grade. If you own such a property that is not gaining the rental return or capital gains you need, it could be costing you money and it might be time to sell and invest again elsewhere. Before embarking on the sale of the property, however, first discuss the issues with your Century 21 property manager and selling agent. 

Could you increase the rent? Are there some affordable improvements you could make in order to gain a higher rental return or selling price for the property? Is capital growth likely to improve in the area in the foreseeable future? Your local Century 21 real estate professionals will be able to advise you based on a solid foundation of local knowledge. 

To reduce the interest you are paying on your home loan

Selling an investment property you have held for some time and that now has a high level of equity can make sense if you use the money to reduce or pay off the mortgage on your own home, saving many thousands of dollars in interest on repayments. 

The property was initially your principal place of residence

If you lived in the property yourself immediately after purchasing it and moved out within the last six years you will not be obliged to pay Capital Gains Tax (CGT) on the sale if you make a profit. This tax benefit may make it worthwhile to sell the property while the time is ripe. 

You are fretting about the property

If a particular investment property is causing you endless anxiety due to problems such as poor strata management or difficulty finding and retaining good tenants, or you are facing a looming financial crisis such as possible redundancies at your place of work, it might be best to cut your losses. 

Property investment is generally a long-term proposition. Sometimes, however, it’s simply a great time to sell or you need to move on. Before considering selling an investment property, be sure to speak with your accountant regarding the tax implications. Will selling the property lose you important tax benefits through negative gearing? How much is the Capital Gains Tax on the profit from the sale likely to be? 

When selling investment property, it’s also advisable to speak with the local Century 21 real estate team in the area in which your property is located in order to determine the current market value of the property, costs of selling, whether you should leave tenants in place or sell the property vacant at the end of the current lease and whether some minor improvements could boost the property value. 

If you live at a distance from your investment property, the Century 21 team can also organise local tradespeople to take care of minor maintenance issues and a handyperson to keep the gardens well maintained while your property is on the market to ensure it achieves the best possible selling price. 

1 comments | Posted by Administrator on 26/04/2017 at 3:58 PM | Categories:

Rentvesting: The New Australian Dream? | Century 21

With skyrocketing home prices in cities such as Sydney and Melbourne, first home buyers are taking a longer term route to home ownership: rentvesting. With no hope of raising a six-figure deposit, and insufficient capacity to make the subsequent mortgage repayments, many are choosing to rent near their place of work and buy an investment property in a much cheaper market elsewhere. 

Rentvesting allows first time property buyers to get a toehold in the property market, build a property portfolio and, in time, use the equity in their investment properties or profit from their sale to buy their own home where they want to live. 

Taking a different approach

First time buyers considering the rentvesting route to property ownership need to keep in mind that buying an investment property requires a different approach to buying a home of your own. It’s important that you take a strictly business approach and keep emotions at bay. Remember at all times that you are not looking for a home that appeals to you personally but a property that offers good rental returns and potential capital gains. 

If you can’t afford to buy in your own city, look to thriving regional areas with good growth potential and strong rental demand. Prices in some regional areas are highly affordable, and you may even be able to get started with a property for under $200,000, with the rent covering your mortgage repayments. 

It’s also important to look for low-maintenance properties that will not attract extra maintenance or renovation costs over time. So, avoid that charming old weatherboard cottage with rambling gardens in favour of a near-new brick townhouse with a small courtyard. 

It’s also vital to consider the risks. What happens if the property lies vacant for a while between tenants or tenants damage the property or fail to pay the rent on time? Make sure you take out a comprehensive landlord’s insurance policy to cover you for these contingencies. 

Getting your team together

Before you begin searching for the right property, get your team of professional advisors together. 

A good buyer’s agent can keep you on the straight and narrow and review properties for you, help you select the best suburb or town to target and even save you time by finding a property for you and negotiating the price with the vendor. He or she will also be able to put you in touch with a mortgage broker, financial advisor and accountant if needed so you are backed up by a skilled team of professionals.  

A buyer’s agent will select a property in the right area and at the right time in the property cycle to protect you from making a poor investment. He or she will look at potential capital gains and ways to increase your equity in the property. It’s important to ensure you choose a registered buyer’s agent as some people calling themselves property investment advisors or similar are really spruikers for a particular property development and will not have your best interests in mind. 

When you speak with a buyer’s agent, ask if they are getting any commissions from other parties and what their research rate is. A reputable buyer’s agent will be an invaluable guide to you as you begin your rentvesting journey and beyond as you build a solid property portfolio. 

Managing your investment property

Another professional resource you can count on for ongoing advice is the Century 21 real estate team in the area you are looking to buy. Once you have purchased that all-important first investment property, your local Century 21 property management team can ensure any potential tenants are thoroughly vetted and that your property is regularly inspected and any maintenance issues are promptly dealt with. 

Surrounding yourself with the right professionals to assist and guide you is key to a successful rentvesting journey that leads to financial security and, in time, ownership of your own home. 

0 comments | Posted by Administrator on 19/04/2017 at 3:59 PM | Categories:

Builder speak: Carpet vs timber floors vs concrete

So, you’re at the design table with your architect and you’re talking floor finishes. Easy, right?

As simple as it might sound, selecting the right floor for your renovation or build can actually make or break the final aesthetic – and affect your home’s flow.

Let’s be real here: No one needs bad Feng Shui in their life.

Getting it right

Floors form part of the seen structure of any home and tie everything together. They also allow you to put your touch on a huge part of your home. So it’s super important to get it right.

Think of any architecturally designed home you’ve been in and you can almost bet they have one major thing in common.

I almost guarantee the bedrooms in these homes will be carpeted. There’s a good reason for this.


Your bedroom should be a place of solace, and if specified correctly carpet is a sure-fire way to achieve this. And there lies the real problem.

Due to the VOCs (volatile organic compounds) embedded in carpets during production, carpet can actually be harmful to your health. Like anything in life these days, you get what you pay for.


Being a chippy means I’ve worked with timber for as long as I can remember, so you’d be right to assume I love it.

There’s nothing quite like the smell of fresh cut hardwoods or laying a Tassie oak floor – which for some reason smells like buttery popcorn when you cut it.

in Australia we grow some of the straightest, toughest and most beautiful hardwoods in the world. Laying these as flooring always adds a striking visual element to any home and you can guarantee that if it’s done right it’ll almost always add value.

Timber is hard wearing, so it’s great for high-traffic areas, is easy to clean, it doesn’t stain – and is cost effective, too. Once laid all it requires is to be sanded and finished with a water-based or polyurethane coating as a sealer. (Carpets and other topical coverings require a substrate.)


Another popular floor finish these days, that’s also really striking, is concrete – but to be completely frank, concrete ain’t concrete.

There’s a multitude of ways to finish it, so you need to make sure you’re across the details. When you polish a concrete slab, you usually do this to expose the aggregate (stone) below. You then seal it with a clear gloss, matte or penetrating sealer to ensure the slab maintains its integrity for the duration of its life.

The other popular finish is a burnished slab. A burnished finish means the slab is trowelled to the point where it becomes very smooth and glossy and requires at least three passes with a trowel after the concrete has been screed flat and level.

The trick is timing the last pass so the slab is cured (hard) enough to get a high angle on the trowel and produce a super-tight surface. The result is like a trowel-burned surface, except trowel burning darkens the slab, while burnishing makes a hard, tight surface while keeping the colour of the slab as light as possible.

May the floor be with you.

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0 comments | Posted by Administrator on 12/04/2017 at 4:07 PM | Categories:

Are You Eligible For The First Home Owner's Grant? | Century 21

Let’s face it, first home buyers are doing it tough these days. Particularly in the hot property markets of Sydney and Melbourne it may seem that, by the time you have saved for a deposit, prices will have risen so much that it simply won’t be adequate.  One way you might just squeeze your way into the property market, however, is to look into purchasing a home that fits the eligibility criteria for you to receive a First Home Owner Grant (FHOG).

The First Home Owner Grant scheme was introduced in 2000 and is a national scheme funded by the states and territories, and administered under their own legislation. Under the scheme, a one-off grant is payable to first home owners who satisfy all the eligibility criteria, which varies from state to state and is subject to change. In some states, first home buyers may also be eligible for stamp duty concessions to further help them along the way to home ownership. 

In general, to be eligible under the scheme you must:

Be a first home buyer as an individual, not a company or trust

Be a permanent resident or Australian citizen

Be over 18 years old

Must occupy your first home as your principal place of residence within 12 months of the purchase or construction of the dwelling and must occupy it continuously for a period of at least six months.  

Here’s what you could be eligible for on a state by state basis.

New South Wales

First home buyers in New South Wales can receive $10,000 for new builds only, up to a value of $750,000. 

On new homes, there are also stamp duty concessions for first home buyers, with full exemption on homes up to $550,000 and concessional rates for new homes valued at from $550,000 to $650,000.


The FHOG is currently $10,000 to $20,000 for new builds only, up to a value of $750,000. From July 1, 2017, this will double for new homes in regional Victoria. 

Also from July 1, stamp duty will not apply to first home buyers for any new or established property with a value of up to $600,000. 

Stamp duty concessions will also be available for homes priced from $600,000 to $750,000. 


Up until June 30, 2017, the FHOG is $20,000 for new builds only, with a value up to $750,000. Full exemption on stamp duty applies for homes valued up to $500,000, with concessions on a sliding scale for new homes valued from $500,000 to $549,000.

Western Australia

In Western Australia, the FHOG is $10,000 for new builds or ‘substantially renovated’ homes priced from $750,000 to $1 million and is dependent on location. 

Stamp duty concessions apply on all properties bought by first home buyers, with full exemption up to $430,000 and concessions on a sliding scale for houses valued at $431,000 to $530,000. 

South Australia

A one-off payment of $15,000 is available for new builds only, with a value up to $575,000. In South Australia, stamp duty concessions are available for first home buyers only for the purchase of off-the-plan apartments in designated areas. 


The one-off payment in Tasmania is $20,000 until June 30, 2017, when it will drop to $10,000. The FHOG only applies to new builds, however there is no threshold. 

Northern Territory

The Northern Territory currently offers a one-off payment of $26,000 for new builds only, with no threshold on value. Here you could also receive up to $2000 to purchase household goods and up to $23,000 off stamp duty if you are a first home buyer purchasing an established home with a value up to $650,000. 


A one-off payment of $10,000 applies in the ACT for new builds and ‘substantially renovated’ homes up to $750,000 in value. First home buyers purchasing a new home are also eligible for a full stamp duty concession on homes up to $455,000, then concessions on a sliding scale on homes valued at up to $585,000. In the ACT, gross income thresholds also apply. 

For full information on eligibility for the First Home Owners Grant in each state and territory visit First Home, and click on the appropriate link.

Once you know the type of property and value you need to be looking for in order to be eligible for the First Home Owners Grant and stamp duty concessions, speak with the helpful team at your local Century 21 office so they can guide you to the most suitable properties that fit the criteria in your area. You could well be on the way to owning your first home after all! 

1 comments | Posted by Administrator on 05/04/2017 at 3:45 PM | Categories:

Reserve Bank of Australia keeps cash rate on hold at 1.5 per cent

RBA rate hold: 1.5%

CENTURY 21, a real estate organisation with over 100,000 staff in 78 countries, believes the Reserve Bank’s decision to leave the cash rate on hold at 1.5 per cent will provide further stabilisation to the housing market in light of changing market conditions. 

The Chairman and Owner of CENTURY 21 Australasia, Charles Tarbey, said that movements in interest rates abroad and locally by national banks, should serve as a reminder for Australians to not borrow beyond their means. 

“Not long ago we saw the US Federal Reserve lift rates, which may be an indication of potential for future rate rises here in Australia,” said Charles Tarbey. 

“Whilst we cannot be certain of any future movements, I believe it is important to consider what even a small increase in rates can mean for your mortgage repayments. 

“Australians looking to obtain finance for property purchases should therefore maintain a level head and remain within a strict budget to ensure their ability to repay is not challenged down the track,” said Charles Tarbey. 

According to CoreLogic data, capital city dwelling values moved 1.4 per cent higher over March, taking the combined capital city index to an annual growth rate of 12.9 per cent; the highest annual rate of growth since the twelve months ending May 2010.  

CENTURY 21 encourages potential buyers who are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

With over 3,000 offices, CENTURY 21 is the largest real estate sales organisation in the Asia Pacific region, a region vital to Australia’s continued economic success.

0 comments | Posted by Administrator on 03/04/2017 at 12:57 PM | Categories: