When the cost of rental property literally caves in on you

When the cost of rental property literally caves in on you

Can you remember the last time you went to stay with friends or family? No doubt they had a spare room with a comfy bed and some crisp, clean sheets on offer. And it was probably a relaxed and familiar experience that made you feel safe and completely at ease as you drifted off without a care in the world.

 

That’s exactly what went down for 49 year old New Zealander, Melissa Ware, when she visited her sister on the Gold Coast late last year.  That is, until 2am!

 

Tired and jetlagged, Melissa wanted nothing more than a long shower and a hot cup of tea before she turned in for the night for a solid rest.  But those plans soon came undone when she woke to a loud bang and the sensation of weight pinning her to her bed.

“It was pitch black, so I had no idea of what was happening and panicked.  My sister and husband opened the door to try and find out what the noise was and were shocked to find me laying under everything pleading for help.”

In short – the whole bedroom ceiling had collapsed on top of her.

Melissa’s sister was furious, having first raised concerns with the property manager about the cracking and sagging ceiling eight months prior.  Several phone calls, emails and inspection reports later, and nothing had been fixed. This was after the ceiling in another room had already collapsed, almost injuring an elderly relative. The agent had sent a repair man to give a quote but was still waiting on a response from the landlord.

Rental vacancy crisis or not, there is no excuse for poor property maintenance or safety negligence.

 

GSA prides itself on its solid due diligence, and working with only the best conveyancers, builders, and designers in the business.  We not only ensure that each dwelling is fitted out in style, we make it our mission to adhere to all health and safety standards across the board.

 

Our investors and tenants can sleep well at night knowing that they’re in good hands.

NO ENTRY – WRONG WAY, GO BACK

NO ENTRY – WRONG WAY, GO BACK

Trying to buy a new property as a first homeowner is a bit like trying to sneak into a nightclub underage:  NO ENTRY.

According to Domain’s First Home Buyer Report, an average-earning couple wanting to buy an entry-level house would have to put more than a third of their combined income towards loan repayments.  On that basis, they’d already be stranded in mortgage stress territory before they’d even begun their journey.

Of course, property “experts” are claiming that now has never been a better time for “Firsties “.  Lower prices, firmer wage growth, and higher interest accrual on savings should create the perfect climate.  But the numbers don’t lie.

Sure, it’s now easier to save for the deposit in the short term, but it’s the long-term burden of mortgage repayments that’s the killer. Those cunning interest rates might be all smiles for the gushing savings account, but they’ll soon stab you in the back when it comes time to pay down the loan. And that’s not all.  The ever rising cost of living is already eating into precious household funds. So, even getting the initial upfront payment to the vendor is not as simple as it seems.

The proof is in the pudding. January figures report an 8.1% fall in new owner-occupier first home buyer loans.  It’s the lowest it’s been since 2017, despite a flurry of government grants.

Although it looks like it should be a first homebuyers market over the coming months, CoreLogic researchers say it’s too soon to call.

If you’re finding it tough to get into the market, come and chat to us about an easier and much faster way to grow your wealth.  Our doors are always open to prospective investors and our motivation is to help the average Aussie secure a more prosperous future.

Forking out $15 mill for a home?  Wham!

Forking out $15 mill for a home? Wham!

The housing market may currently be in slight decline, but some homes are still listing for quite the pretty penny.

Originally up for grabs for a neat $5.8m in 2010, a Palm Beach ocean front villa in Sydney has tripled in value over the past 13 years.  But that’s not all that makes it noteworthy.  Aside from its obvious picturesque locale, this little piece of prime real estate was once home to none other than British pop star, George Michael.

Now a popular summer rental, the northern suburbs pavilion-style luxury home fetches a nightly tariff of two grand.  That’s not a bad passive income earner!

Of course, in this case, you very much get what you pay for.  It features travertine stone flooring, Miele and marble kitchen décor, 5 king-sized bedrooms with balconies, 5 bathrooms, a media room, wet bar, heated infinity plunge pool, and off-street parking for 3 cars.

Dubbed as Sydney’s most exclusive suburb, the median house price in Palm Beach is $5.175m.  That’s up a whopping 56% in 3 years!  But you’d certainly have to have your bank account wits about you.

 

Now let’s turn to GSA for a moment.

 

You don’t actually need millions of dollars to buy high-earning, premium real estate.  For a fraction of this price, you can invest in luxury apartments and townhouses in some of Melbourne’s most affluent locations.  What’s more, you can enjoy bigger, better returns that will set your super or savings up considerably faster than your average investment opportunities.

Think multi-storied residences, secure basement parking, deluxe fittings and appliances, direct lift access, ultra-modern designs, large terraces and courtyards, city skyline views, enviable locales and lifestyle opportunities, and capital growth beyond your imagination.

There’s more to property investment than getting slammed in the face with outrageous prices and even more appalling returns. Come and ask us how we do it.

Reinventing Renting

Reinventing Renting

With the onslaught of COVID now out of the way, Melbourne’s inner city rental market is now being redefined.

Where once there were vacancies aplenty due to a mass exodus to regional parts of the state, CBD livability is almost back in full swing. It seems that urban rentals have regained some traction and are now in significant demand. And it’s all due to a bit of market tweaking.

Renters are now reconsidering the type of dwelling in which they’re prepared to live, as well as the living arrangements that will give them the best bang for their buck.

Let’s look at what’s placing a whole new lease on rental life.

 

Rental Stress

With pandemic scares and restrictions out of the way, city rental vacancy rates have fallen from 4.79% to a mere 2.06%.  This clearly puts pressure on the market and pushes rents well into budget-breaking territory.  The stats say that the number of potential renters per listing has surged by nearly 50%!

This has forced would-be tenants to reconsider what they’re prepared to compromise.  Some are taking on much smaller apartments, while others seem willing to go back into shared accommodation.

Of course, the return of international students and workers hasn’t helped.

But for those who still insist on squeezing every little perk from their last penny, the following option is probably right up their alley.

 

A new contender

Where developers would usually build multiple apartments and sell them to individual owners, they’re now choosing to be the landlord themselves. It’s called the “build-to-rent” model.  The beauty is, renters can forego extra expenses like cleaning, gym membership, going out to entertain, and even the commute, as they’re an all-inclusive part of the tenancy.

By bypassing the middleman, developers can now do what they please with the entire building.  As such, they can offer tenants a range of lifestyle luxuries and opportunities at no additional cost. For every dollar these renters pay for the comfort of living here, they save 10-fold on other things.

That’s not a bad way to do it.

 

But as for us?

We know that not everyone wants to live in the city, nor do they need the likes of cleaning services or gym memberships.  What they want is a comfortable abode in a suitable locale that gives them complete privacy and exclusivity.

If you’re keen to hear more about our luxury apartments and townhouses, give us a call today.  Sometimes you just don’t need to reinvent the wheel.

Best Places to Retire in Australia

Best Places to Retire in Australia

Ahhh … retirement. Is it some far-fetched dream that seems largely unfathomable to you right now? Or is it lurking in the shadows just over the horizon? Maybe it snuck up on you sooner than you expected. Whatever your situation, choosing the perfect spot to settle in for the last quarter is one of the most important decisions you’ll ever make.

Of course, the ultimate goal is to find somewhere that fits in with your lifestyle and gives you access to everything on your retirement bucket list.

Sometimes circumstance dictates where you’ll live. But for those lucky enough to take your pick, here’s the latest lowdown on where you could finally lay your hat.

 

Caloundra, QLD

 

A popular Sunshine Coast retirement destination, Caloundra’s sunny weather and proximity to the city, have seen it in the running for decades.

It offers relative value for money compared to its bigger cousin, Noosa, but is still an all-round exciting place to live. It also boasts a mild all-year climate, uncrowded beaches, and plenty of land & water activities.

 

St Helens, TAS

 

This is small-town, laid-back living by the ocean at its finest.

Known for its excellent game fishing & bird watching opportunities, it also offers a much milder climate than the rest of Tassie.

It features more affordable housing, outstanding seafood, and the Bay of Fires right at your doorstep. With its clear, blue seas, brilliant white beaches and striking orange boulders, it’s a highly coveted lifestyle locale.

 

Nelson Bay, NSW

 

Ticking many a retirement box, Nelson Bay revels in its stunning coastal location, established foodie scene and a plethora of water activities, including swimming with the dolphins.

This breathtaking area is much more affordable than Sydney and offers a host of retirement village options. Plus, it provides excellent seafood and dining, including Rick Stein’s new Bannisters restaurant.

With close to half its population classed as older couples and families, it’s easily become one of NSW’s retirement hotspots.

 

Of course, if you’re wondering whether you’ll have enough to retire comfortably, you may want to look at ways to grow your super faster. That’s where we can help. Have a chat with one of our team today.

A stalac-tight hold on the market

A stalac-tight hold on the market

When you say you’ll put down a deposit on a property, you probably don’t mean the mineral variety. But that’s precisely what Canterbury-Bankstown residents encountered when they purchased from developer plans a few years ago.

The NSW government has put dodgy developers on notice for poorly constructed buildings, as major defects have been on the rise.

In Sydney’s west, one apartment block had such questionable plumbing that water was flowing through the entire structure and eroding the concrete.  The building became so damp that stalactites were growing in the garage.

 

“It’s just like going to the Jenolan Caves”,

said one apartment owner.

 

That’s not only an obvious safety issue, but also a prime health hazard.  And to top it all off – the developer has left the country, so there’s precious little the owners can do about it.

A recent strata management survey found the most common problems to be waterproofing and fire safety, with a jaw-dropping 39% of builds between 2015 – 2021 having serious defects.  And NSW is undoubtedly not the only market to cop it.

Though not every build will be perfect, there’s certainly much cause for alarm.  Especially when you invest your hard-earned dollars into a development, hoping to profit, not lose money.

 

So, let’s talk about the GSA approach. 

 

We are 100% invested in your investment.  GSA prides itself on only working with Melbourne’s most highly vetted developers and planners.  And we go to great lengths to perform careful due diligence before the build and monitor the process every step of the way.

Our finance and legal teams work together to ensure that all our “i”s are dotted and all our “t”s are crossed.  We’re dedicated to giving you the best possible investment outcome, so you can be assured your property will be less cave and more temple.

Give us a call to find out where to start.