Forum Replies Created
Reds = high taxes = less freedom of choice = government wasting MY money = higher interest rates = higher inflation, etc etc.
Only a fool (or a Red) would vote for the Reds.
Hi elves
Unfortunately there are too many incompetent agents out there but considering what they get paid, I can’t say that I’m too surprised, there’s very little incentive to do a good job.
To your issues:
1. An agent should always have a second set of keys, security keys are always an issue but can be obtained.2. Not having keys is not an excuse for no inspections. The frequency should have been discussed with you before your management agreement was signed and the max number is also stated in the RTA.
3. If it’s the agents fault and you can prove it you should claim the lost money from the agent. (See below)
4. There is no provision in the Residential Tenancies Act to increase the bond after a rent increase.
5. What does the condition report say?
If you can’t get adequate answers from your agents, take the matter to the CTTT (Consumer, Trader & Tenancy Tribunal). It only costs $28 from memory & is good fun to boot! Agents on the whole are afraid of the Tribunal so don’t think you will be at any disadvantage.
As a footnote to what is a fairly common problem (bad agents)I think it’s highly relevant that some agencies out there pay their employees what is basically a slave labour rate with the blessing of the Government. How many other employees have to provide a vehicle, fully insured & registered for business use and undertake compulsory education at a not unsubstantial cost, simply to keep their job that pays $36k (inclusive) a year? Not too many I’m sure.
Good luck.Originally posted by elves:some may not state it, but are vetted eg kids free zone (hard pressed to prove this as well as low income earners).
I know there are more but you would have to watch for discrimiation and legal implications with any lease that is prepared. An agent can advice.
Elves
Never a truer word spoken. <offensive- edited by kay henry>
Of course, this is illegal and cannot be written into any agency agreement or contract, but by stealth we can still look after our investments because government agencies sure as hell won’t do it for us.
I agree with MiniMogul, is 10% really enough? At that rate you are dependant on capital gains to make any money. One thing I never have come to terms with in Australia is the pitifull yield investors are willing to accept on something that should demand a higher risk factor on its yield. Still, people do have short memories…
I am largely in cash but have (unforunately) had to settle on an of-the-plan purchase of 2 years ago. I say unfortunately because my cash is earning 7.5% at call with City Pacific. I also have a 12 month fixed term earning 8.75%. My view is that property is overvalued, that of course doesn’t mean that it won’t go up, but there surely is limited upside from here on.
The stock market is also not going anywhere fast so an 8% return on cash is good enough at this point in time.
Steve
Hi Savers
AMP esaver account (same type as ING) now earns 5.05% but I have most of my money with City Pacific earning 7.5% at call, reinvested quaterly 7.71%. Lock it in for 12 months and get 8.75% ( think). The rates on their web site are a tad out of date. Top company.
Hi fullout
If you want to sack your agent you should first take a look at your agency agreement. The term of notice is usually between 30 and 60 days, but some agents put 180 days in the contract. Contrary to what you have been told above, of course you need to communicate with your agent, one way or another.
If you want to leave immediately you will generally have to pay commission up to the date that your agreement ends.
The bond is not held by the agent but instead by an independant body (Dept of Fair Trading), so you simply need to communicate with them. You can ask for any method of payment you like, some like to get cheques, some like electronic paments, it’s up to you.
Don’t forget to do condition reports and give tenants copies of whatever paperwork is required by law (e.g. Renting Guide booklet here in Sydney). I would suggest you contact the Dept of Fair Trading to make sure that you cover all bases in your particular State, because laws are different for each State. By the way, you have undoubtedly given your current agents authority to sign contracts on your behalf, so you cannot raise rent during the fixed term of the current tenants lease.
Steve
It makes you laugh doesn’t it? Real estate agents are apparently so busy but most of them leave out the most commonly sought piece of information from ads – the price! Adding that info would cull most general enquiries straight away leaving them to concentrate on serious buyers only. Others say rather stupid things like “Expressions of Interest”. What nonsense.
I think the truth is that most of them are rather uneducated when it comes to their chosen profession and so choose to tell buyers as little as possible, thereby leaving it up to the vendor and buyer to sort out. The common misconception that agents are so busy is a complete furphy, the truth is if they are too busy it’s because they create uneccessary work for themselves with their ridiculous work practices.
The Jenman system is a step in the right direction, but again falls over because of Neil’s “Amish” like attitude to the use of technology and advertising in general. A real shame, because this is the best way forward for all concerned.
Steve
Thanks Guys
Noddies, sorry if I caused offence but I can only respond to what is written here and when I read statements like “I have just checked it out on the internet and it is a high rise on the Yarra River. As such I wouldnt reccomend it to anyone”, this doesn’t sound to me like a statement backed up by “solid research…”.
If your occupation is a “property and investment consultant” I am rather surprised you had to look this development up on the Internet. Back to my original point I think…
Sorry, but the world is full of “experts”.
The Residential Tenancies Act stipulates the amount of bond that may be collected from a tenant in Sydney :
4 weeks for unfurnished premises,
6 weeks for fully furnished or if the premises are under $250 per week,
Unlimited if the rent for fully furnished premises is more than $250 per week.So for most properties the bond would be 4 weeks rent. The only way you could persuade a lot of owners would be to offer more rent.
Additional conditions such as your offer to fumigate the premises are unenforceable (and illegal) and hence are not likely to be accepted (except by a duff agent)
Steve
Auction is just one way to sell real estate, not the best way for the seller but definitely the best as far as the agent is concerned. As long as owners fall for the agents bull when it comes to selling then auctions will never disappear. Agents in Aus have an easy life – advertising paid for them, no need to look for buyers, kickbacks from various sources, etc etc. If you’re interested take a look at the Jenman site: http://www.jenman.com.au
He talks bollocks most of the time but does have some good points.What a can of worms this is.
Individual tax in Australia is very high with a top tax rate of 48.5% (all in), what most people don’t take account of is the ludicrously low tax free allowances here. Plus the fact that usually these allowances are not automatically adjusted for inflation each year (bracket creep of a different kind that affects everyone).
As far as I am concerned, there is not only little incentive to work harder, but there is also little incentive for an entrepreneur to take risks when tax accounts for a large chunk of their potential profits (even though this has changed for the better).
Anyone who thinks that earnings above $60k should be taxed at nearly 50% is living in cuckoo-land. Add on mind boggling property stamp duty rates and Australia becomes an investment no-go for many. I have not and will not buy any property here that is already established while we are getting fleeced by greedy politicians via stamp duty. I would rather go o/s to spend my money.
There is also no incentive for anyone to save here. Superannuation laws make investing for your future much harder than it needs to be, unless you a politician of course.
So there Australia, your tax system sucks!
Thanks Guys, every piece of info I didn’t need or ask for except for the name of a good building inspector. Doh!!
Noddies, I wasn’t looking for your “recommendation” before buying this apartment and I think your “oh no, it’s a high-rise” attitude needs to be qualified before lumping every development together in the same basket. A bit more homework wouldn’t go amiss.
Steve
Thanks Steven, I am more than a little surprised that apparently no-one in Melbourne has property inspections before buying!
Why a quantity surveyor? I already have a full depreciation schedule if that is what you are referring to. Perhaps you could explain your reasons?
Thanks
Steve
