Rent Information

Part 1:

Tips for moving
The big move, for most families is an exciting start to the day and an exhausting hell at the finish. With that in mind you should balance the pain against your budget and get as much help as possible. Doing it yourself may be the cheapest moving option but you shouldn’t underestimate the stamina it will require to pack everything, load the hired truck and unload in one day. Stairs and steep driveways are hard yakka even for the professionals! Removalists can do as much or as little as you want, from lugging just the heavy furniture like the washing machine and fridge, to managing the whole move which means unpacking all your bits and pieces at the other end. Whichever way, always get at least three quotes.

Catastrophe money
Budget for some extra costs after you move into your new place. Inevitably, some type of minor catastrophe occurs: the hot water system dies after a decade of faithful service, the oven refuses to work, or the plumbing backs up. Whatever form the unwanted disaster takes, you will need some extra cash to cover such emergencies - which are sometimes inevitable, no matter how carefully you check the new place.

Part 2:

Things to be done:

  • Be aware that if you are doing the packing, the company's transit insurance may not cover any damage.


  • When the estimator arrives to quote, be sure to show them everything that has to be moved and advise them of potential difficulties at the other end: access problems, winding staircases, narrow streets. The more information you provide, the less chance of having additional charges levied: e.g. the hire of another van because the truck was too wide for the street.


  • Be sure you understand the terms of the contract, such as the hourly rate, when the charge commences and finishes, how you will be charged, how you will pay, and the exact definition of “subject to increase” clauses.


  • Give the removalist as much notice as possible, especially for peak moving times such as summer and the last week of the month. Confirm dates once the sale is finalised.


  • Commence the clearing out process as soon as possible to make it less of a torture test. Get rid of as much as you can before you move. Clean items as you go: for example washing all the dusty, rarely used items in the china cabinet before packing. The last thing you need when you are settling into a new place is to have to wash and polish everything as you unpack.


  • Arrange for the disposal of old paint, garden chemicals, fuel etc. Drain fuel from the mower, remove batteries from battery-powered devices, empty gas cylinders and bottles. The AFRA site gives a list of items like these that removalists cannot take on their trucks.


  • Pack a survival kit containing cups, kettle, tea, coffee, sugar, milk, snacks, toilet paper, light bulbs, bin liners, cleaning materials, tools, a torch and, in case you don’t get unpacked by bedtime, a change of clothes and sheets and blankets.


  • Obtain packing cartons in a variety of sizes from the removalist, or a company selling packaging materials. You’ll also need packaging tape and dispenser, marking pens and bubble wrap or tissue paper for delicate items. Use butchers white paper for a cleaner pack.


  • Pack by the room - it’s quicker and more rewarding. Move boxes away from doorways and beds and tape closed at the last minute.


  • Clearly label cartons on the top and at least one side with the room they are to go in. Add other information for your own benefit about the contents.


  • Fill cartons only to within three to five centimetres of the top to provide cushioning. Don’t let items protrude above the top of the carton, or bulge out at the sides, because they won't stack properly and may split.


  • Don't make cartons too heavy, especially when packing items like books. Leave the piano, mirrors and valuable paintings to the experts!


  • Slap fragile stickers or write 'fragile' over cartons containing anything breakable and use more packing paper between items just in case.


  • Check the insurance cover offered by the removalist. It may not be 'new for old' cover, but instead reimbursement based on market value. Seek the removalist's advice about additional insurance you may need such as transit insurance, which bridges the gap between your household contents cover in the home you are leaving, and the one to which you are moving, providing uninterrupted security. If you are putting anything into storage, you will need additional insurance to cover your goods during the storage period. Get quotes and organise your policy as soon as possible.


  • Have an unpacking plan listing boxes in order of practical importance - don't exhaust yourself unpacking non-essential items first.


  • To keep your children occupied on arrival have their toys or the television ready, leaving you free to unpack in peace.


  • Get a good night's sleep and plan to get up as early as possible on moving day so that you are ready for when the truck arrives.


  • When the last box has been loaded onto the truck, secure the property and leave the keys at a prearranged location.


  • Before the removal van arrives - inspect the property closely to ensure that everything has been left as agreed. Refer any omissions to your solicitor.


  • Organise electricity, gas and phone to be turned on in your name for the day you arrive.


  • Buy a bottle of champers and soft drink for the kids to celebrate - you deserve it!


Part 3: Buyer Information

Create a budget
By knowing where your money is going, you can make cutbacks that, over time, will give you thousands of additional dollars to plough into your mortgage. Don’t underestimate how small amounts can compound - for example a cappuccino a day swallows up $1,000 a year.

Taking your lunch from home
This is probably a healthier alternative for you and your children to buying it and will more than halve the cost especially if you work in the CBD. Buy your wine and beer by the case
Take advantage of those specials at the bottle shop and save.

Cut up your credit cards
Unless you are disciplined enough to pay off the full amount each month so that no interest attracting balances remain. If you do use a credit card choose one with an incentive reward program attached.

Buy your clothes at sales
Purchase according to a pre-determined plan that builds a wardrobe of co-ordinated pieces rather than buying on impulse.

Plan your meals in advance
Shop weekly at the supermarket rather than convenience stores and look for generic brands of similar quality to the more expensive products. Buy fresh food and make meals from scratch instead of using frozen, pre-prepared meals. Try to limit the amount of takeaway you eat each week.

Check out special movie deals
For example half-price Tuesdays, adults for children’s prices and special prices before 5pm. You can buy books of cinema vouchers in advance, which can also be cost effective.

If interest rates drop, keep your repayments the same
By maintaining the payments you will pay your loan off faster.

When you receive a pay increase
Put at least 50 per cent of the after-tax amount towards additional repayments.

Part 4: Selecting Your Family Home

An understanding of your family’s daily activities will help define a "blueprint" of the preferred features to look for in your new property.

Use the following as a guide for discussion:
  • Assess what size house you will need and take into account factors such as the number of bedrooms and bathrooms, garage, kitchen size, family room, and any interests or hobbies.
  • Determine the style of home you do or don’t want: e.g. modern, colonial, federation, one that has been renovated or extended with nothing to spend, or one that gives you the scope to decorate as you please.
  • Include any other features that would appeal to you: a home office, a pool, an established garden, a level block or views?

If you are contemplating a move to a new suburb, spend some time getting to know it.

Check out the following:
  • What is the public transport like?
  • How is the traffic, especially during peak periods?
  • How long will it take you to get to work?
  • Does the area cater for your lifestyle, with schools, hospitals, shops, restaurants, parks, sports and other services?
As your home may be your largest financial outlay, you also need to consider the area from an investment point of view, particularly it’s potential re-sale value.

Give your specifications to your local CENTURY21 agent to avoid wasting valuable time looking at unsuitable properties.

Home offices
If you are setting up a home office, allow at least twice as much space for it as you think you’ll need. The good-sized room you had in mind shrinks alarmingly when you add a computer, printer, scanner, fax, file cabinet, storage cabinet and reference books! If public access is required for your clients you’ll need to consider the impact this will have on your family’s privacy. To ensure a smooth transition for both your family and your business think very carefully about all of these issues.

Assessing a House
When viewing a lot of houses the features from one property to the next start to blur. Make a checklist to help you evaluate and remember each one.

  1. Outside
    • Condition of gates, fences, walls, paths, pavers
    • Garden and outdoor living spaces - how will these fit your lifestyle?
    • Aspect of property, specifically the amount of sun, shade and wind the property receives
    • Exterior buildings such as garage, toolshed or the like
    • Condition of swimming pool/spa
    • External condition of the building, including paintwork, damp, roofing and guttering
    • Offstreet parking
    • Proximity to amenities
    • Noise levels
    • Check if any adjacent properties are subject to a Development Application

  2. Inside
    • Condition of walls and ceilings
    • State of carpets, floor boards and floor coverings
    • Insulation and ventilation of property
    • Level of natural lighting and types of light fittings present
    • Condition of windows and doors
    • Living space - imagine how your furniture will fit
    • Bedroom sizes and built-in robes
    • Kitchen benches, cupboards and major appliances
    • Laundry appliances
    • Size and condition of bathroom and toilet
    • Home office or attic space

How to buy an investment property
The most important piece of advice when investing in the property market is to do your homework.

Check your finances
Assess your budget realistically so you know whether or not you can afford the monthly cost of an investment property.Fixed interest rate loans are very popular with investors as these allow you to accurately budget for your repayments, knowing your levels won’t increase. And because it’s only the interest that’s tax deductible, most investors believe that repaying more is not tax effective.
Always remember, your owner-occupier home repayments should take priority over your investment loan because your interest payments on your investment loan are tax deductible.Your local Century 21 agent can advise you of the real costs of buying an investment property. In addition your CENTURY21 Home Loans consultant can show you how you can best structure your finance to maximise your returns.

Estimate your capital gains and rental return
While your choices regarding your homeowner property will be primarily influenced by emotional reasons (such as personal taste), your property investment will need a different approach. The best way to view your investment is in purely financial terms of risk and return. You need to consider both the rental return and the potential capital growth.

How long will you keep it
It is important to have a plan upfront of how long you intend to hold your investment property. Most financial advisors believe that the minimum timeframe for investing in property is five years to allow sufficient time for capital gain

Part 5:

Location, Location, Location!
There’s a reason why the catchcry, “Location, location, location!” is such an over-used phrase: it’s because location is your potential trump card in property investment. Spending time researching areas before you invest can save you effort and wads of cash; and choosing the right areas is not as straightforward as it sounds!Put yourself in the shoes of your future tenants when deciding upon location; those who are renting usually value convenience, so include proximity to public transport, public amenities, shopping centres and parks in your choice. It can also be a good idea to buy property within convenient driving distance of your own home, so you can check on the property with relative ease.

Talk to the experts
Talk with your local CENTURY21 agent about vacancy levels, rental levels and expected future capital growth of the area. Make sure that you have a really good understanding of an area before you purchase a property in it.

Dot your “i”s and cross your “t”s
Reassess your budget with a view to gauging exactly how much you want to spend; of course, the choice of unit or house will have significant bearing on this. Units are generally a more popular choice for several reasons; less maintenance is involved, larger tenant demand and generally lower price range. Many investors look for newer properties where the maintenance is going to be less than older properties but find that depreciation tax deductions are higher.

Who looks after your property
While some property investors choose to take the management of the premises upon themselves, most people prefer to arrange for a real estate agent to manage the property for them. Your local Century 21 agent is fully versed in all aspects of property management and can assist you so that you can sit back and enjoy your investment. Remember that if you do decide to take up the role, there will be a number of aspects to consider: finding and vetting the right tenants, collecting and accounting for rentals, paying outgoings such as body corporate fees and rates, arranging maintenance work and conducting ongoing inspections. Think carefully about whether you’ll realistically have the time to cater to these pressing needs.

Assess the risks
Any entrepreneur will tell you that calculated risks are a necessary factor of the money game. In terms of property investments, the key is to balance risk against your projected returns. Be aware of the following risks before you buy an investment property:

1. Your property may prove difficult to let
2. The rental may turn out to be less than you expected
3. Interest rates could rise, increasing your repayments
4. Maintenance costs may be higher than you budgeted
5. Problems with tenants may arise creating unexpected hassles
6. There may be no capital gain; or worse, your property could decrease in value
7. You may have difficulty finding the monthly shortfall from your other income sources

To succeed in property investment you need to devote time to some serious planning and preparation. However, if you are prepared to do your homework upfront, investing in property can be extremely satisfying as well as financially rewarding.

Negative gearing
The term “negative gearing” is classic jargon that is often misunderstood. An investment property is “negatively geared” when the mortgage interest and other tax deductions such as management fees, rates and maintenance costs are greater than the rental income.

This results in a net loss that may be offset against your other income (such as your salary) which then lowers your overall tax bill. In this way, the taxman as well as your tenant helps you pay for your investment property. And hopefully, your property is steadily appreciating in value. Most people feel more comfortable “gearing” or borrowing to pay for an investment property or properties than borrowing to purchase shares that are generally much more volatile.





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