Tree Change - Sea Change

With the start of a new year, many take the opportunity to reflect on the year just past and to plan for the future. This can often include putting plans in place to move house. Regardless of the reason for moving, if not fully thought through, you may end up regretting the change. Moving is stressful and even more so when moving to another town or state or anywhere very different from where you live, such as from city to country or vice versa. Some of the mistakes that cause stress and a huge sense of loss can be avoided.

1. When planning a move, avoid focusing just on the gain and not the pain of the move. Loss affects us much more psychologically than gain. Think about what you are losing very thoroughly before you make the change.
2. If you move out of town try not to underestimate the commute to work and its effect on you or the family. It’s easy in the heat of the moment to think ‘It’s only an hour or an hour and a half’ or whatever it is. Remember it is that amount every day and worse if there is an accident making the road slower.
3. Don’t underestimate the negative effects of moving away from people you love. Extra salary and other gains don’t often make up for loss of loved ones.
4. Make sure you do enough research on available services, activities and cultural facilities so that the things you would really miss are replaced.
5. If you are retiring to a small town, perhaps a favourite holiday place, think about whether the medical services will be adequate if one of you becomes ill. 6. Before you sell up and make the move, consider leasing out your home and renting in the area you are planning to move to. There is no harm in the “try before you buy” approach. Many a Victorian retiree has moved to Queensland after enjoying winters holidaying there to find the summers are unbearable!
   

Rent report

For most landlords the name of the game is maximising their return and there are many factors that come together to achieve this. Many novice investors think they should hold out for the highest rent possible when letting their property – even if it means the property is vacant for several weeks. When you actually do the sums, the best return comes from minimising the time your property is vacant between tenancies.

Whilst it is always desirable to get the highest rent possible in the market, sometimes holding out for that maximum rent is counter-productive. For example holding out for a high rent, say $300pw, when the market suggests the property is really worth $285pw will have the extra $15 per week ($780 across 52 weeks) or 5% you were hoping to achieve all but eroded in two and a half weeks. In addition, unrealistic rents are more likely to be paid by desperate tenants. Those who have a short term agenda or are poorly referenced, and have been unsuccessful with previous tenancy applications. It is not always easy to lower the rent or to resist the temptation to “wait another week”. It is a good idea to have a plan in place before the property is vacant and to listen closely to the advice of your property manager – as they are feeling the pulse of the rental market on a daily basis and are in the best position to guide you. Many experienced property investors work by the rule that (provided the property is clean and presents well and is well-maintained) if a tenant is not secured by day ten of the leasing campaign, the asking rent should be reduced. This takes the agony out of the decision, enabling the property owner to distance themselves from the process by working to a tried and tested system.