We have come to realise that nearly half our clients are 'Accidental Landlords' - people who have inherited their investment properties or moved out of their family home and rented it out. So what? Why does that matter? Well the questions and challenges for Accidental Landlords are different to those of 'Active Property Investors' – those who specifically bought their property as an investment. If you are an Accidental Landlord, read on and we’ll talk about why you should care.
This property ticks all the boxes.
It is certainly the right time to be buying the property at 4/307 Hawthorn Road, Caulfield North - at $1,175,000.
And the long term investment fundamentals are strong – Caulfield property has grown strongly over the last decade. 3 bedroom units have grown at 6.6% p.a. compound every year (so at this price that’s about $76,000 of capital growth every year).
Real estate is about more than location, location, location. It’s also about the AMOUNT of land you own in that location.
The basic principle of capital growth in real estate is that the value rises fastest when the demand (the number of people who want the property) is growing faster than the supply (the amount of properties available that meet their criteria).
As we joke on our website, most local agents find a way to tell you it’s always a good time to sell. Why? Because it’s a good time for them to make money from you selling. That is not advice. At least not professional advice.
And, many local agents will give you a 'rosy' view of what your property is currently worth to convince you to sell – they will take 'comparable sales' of similar properties from months ago, when the market was considerably higher – and tell you that is a guide to what you might receive if you start to sell now – and therefore aren’t on the market until a month or two from now when prices will be even lower. This will only lead to disappointment when the market realities become clear.
Vacancy can come quite suddenly – a month-to-month tenant only needs to give you 28 days notice – and can be very expensive, typically 2 to 4 weeks of lost income plus advertising costs and letting fees.
That’s why we created LongView’s Guaranteed Rent solution. Because we manage nearly 2,000 properties all over Melbourne, our JOB is to manage for minimal vacancy.
Our Executive Chair, Evan Thornley, successfully moved a block of flats in St Kilda from traditional rental to AirBnB and saw a 50% increase in net cash flow. So now we always appraise a property for our clients for both traditional and AirBnB rental to see which option is most attractive.
LongView is committed to constantly improving our client service and making your experience smoother and less troublesome. But like most local agents, we’ve done so to date on software than is frankly 20 years out-of-date. After spending years in Silicon Valley some of us were shocked at how backward the local agency world is in technology adoption.
While most of the real estate industry is driven by Sales only and with the market in downturn, many local agencies are struggling and laying off staff.
LongView, with a focus on helping clients make good property investments, is growing. And we are looking for outstanding people who want to help us transform the real estate industry and create a professional services grade experience for our clients.
When the time comes to sell your investment property, no one knows whether your buyer will be an Owner Occupier or another Property Investor. But we do know this: the more interested parties you have, the better the chance of receiving a great offer. And the key to having more bidders is to get more investor
Every day there are stories in the press about whether we are in a property boom or bust, making the case for one or the other supported by a lot of confusing analysis on debt to income ratios, price to yield ratios and many other facts. Interest rate cycles come and go. Negative gearing tax