We've been writing for years about the somewhat hidden downsides of selecting a low-fee or online only property management business - see "Flat Fee Property Management - What's The Hidden Danger?" from 2019 and "Should I Use An Online Property Management Service Instead of Hiring A Property Manager?" from 2017.
Now it has been confirmed that low-fee property management business Yabonza has gone into liquidation.
For a long time now we have all become increasingly aware of the accelerated state of the rental market post-COVID. Rents across Newcastle and Lake Macquarie have significantly increased as a result of a combination of factors including regional migration away from capital cities, construction delays for building of new homes, and increase in demand for space as the number of people working from home increases.
We first wrote about this trend as far back as September 2020 and several times since.
A conversation we are now having increasingly frequently with property investors is that they feel that the rent they are receiving for their property has fallen behind the market. The reality is, if your property has had an existing tenant in place for several years, then yes it very likely has fallen behind currently advertised rents due to the extraordinarily high spike in asking rents over a relatively short and recent period.
When budgeting for the costs of holding a rental property, most investors factor in the regular, repeatable expenses such as council rates, water service charges, building and landlord insurance, property management fees and strata fees (where applicable).
From time to time there are additional expenses every investor is likely to incur - the trick is that the timing and extent of these expenses tends to be unpredictable. Due to their unpredictability, they can be more difficult to budget for and are sometimes neglected completely.
Following is not an exhaustive list by any means, however should help as a reminder to new and seasoned investors alike of the importance to allow for a savings buffer to ensure any untimely surprise expenses are little more than an inconvenience.
In this article we run through a series of steps we regularly see from investors who are fed up with terrible service from their current real estate agent, only to be wooed to stay where they are by a fee reduction.
If this sounds like your situation, read on.
As we click over 2 years of COVID-19 impacting our lives, in this article we reflect on the ways the virus has impacted the property market in Australia, and particularly within regional areas such as Newcastle and Lake Macquarie.
Over the past 6-12 months we've had an increasing number of conversations with new and existing investors who are interested in buying into the property market in Newcastle and Lake Macquarie, but don't know where to invest.
The point of this post is not to provide a hit-list of suburbs (sorry!) - and the reason for this should become obvious as you read on! One person's ideal investment opportunity is another person's problem project.
Instead, we aim to provide some fundamental food for thought, to help assist in ruling out certain opportunities or areas and focusing on what suits YOU as an investor... what suits your personal appetite for risk, amount of time to hold before selling, etc.
Of course this is not an exhaustive list of points to consider, and certainly should not be taken as strategic or financial advice. We are simply offering some basics to consider to separate the good from the bad opportunities as they might suit YOUR unique situation.
We are commonly asked by landlords "How long will it take to rent my property?", and there are of course many factors which influence the answer! One of the less obvious factors can even be the time of year you list your property for rent.
A recent article from realestate.com.au provides some insight into which months of the year typically see most rental listings and the highest number of rental searches. We summarise the results below, also adding in findings from our own data from Newcastle and Lake Macquarie based on our listings in 2021.
Carnelian Property Management Newcastle NSW
We are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie.