Tenants Breaking the Lease? Here’s What You Need to Know

Tenants Breaking the Lease? Here’s What You Need to Know

The most important thing is knowing your tenant’s rights and responsibilities. If a tenant breaks a lease, they may be liable for rent until their new tenancy begins or until the end of the term, whichever occurs first. Keep in mind that if a renter breaks their rental agreement with you before it expires.

Breaking a lease is not something that most tenants want to do, but sometimes it happens. If you are considering breaking your lease for any reason here’s what you need to know:

– Lease termination fees will vary based on the terms of the original agreement and other factors such as how much notice is required before moving out. Giving your property manager as much notice as possible will help minimize the costs. Communication is your best friend. The more you communicate the less likely there will be down the road.

– Lease termination fees are typically non-refundable and payable in full to cover any losses incurred by your early departure. You will not be able to transfer this fee or apply it towards future rent payments, for example.

– It is important to remember that breaking a lease can have serious consequences on your TICA file. Lease violations are considered to be serious and may result in the termination of your tenancy affect your ability to be approved

– Lease break fees can range from $150-$1500 depending on whether you’re breaking an apartment lease or house rental agreement. If you don’t know how much it will cost where you live, ask us for your current property manager.

The RTA offers a Lease Breaking Calculator to help you estimate the cost.

You can find that here https://www.rta.qld.gov.au/

10 Best Brisbane Suburbs For Property Investing

10 Best Brisbane Suburbs For Property Investing

If you’re looking for a rental property in Brisbane, then it’s important to know which suburbs are performing well. This list of the Top Ten Performing Suburbs is based on data from 2021 and will help you decide where to invest your money.

Being aware of how different areas are performing can be an asset when making decisions about real estate.

Morningside

The suburb of Morningside has seen the strongest growth in terms of median rental price as well as a strong increase in population. It’s also one of the most sought-after suburbs to live in, which means it’s very popular with renters and owners alike.

Doolandella

This Suburb is another leading performer in Brisbane’s property rental market. It had a strong growth year-on-year, and the median price for rentals has gone up 40%. If you’re looking to rent or buy here, then now may be your chance as this suburb is going fast!

Milton

This suburb had an extremely strong performance this year, with the median rent increasing by over 15%. It also has a very high population growth rate, which is one of the things that attract renters to it.

Kangaroo Point

One of the most sought-after suburbs for rentals, this neighborhood saw a significant rise in median rent which was close to 11% year-over-year.

East Brisbane

East Brisbane’s current economic performance is steady and it saw an increased number of renters in this area as well as a substantial increase in rental prices. 

Bulimba

Bulimba | 10 Best Brisbane Suburbs For Property Investing | Locate Property

With a median rental price of $800 per week, Bulimba is one of Brisbane’s leading suburbs, and for good reason. It saw strong population growth and increased demand for renters which resulted in the median rent increasing by 13% year on year.

Hamilton

Hamilton is another suburb that had a  strong year in terms of rental performance with the median rent increasing by over 11%. It also saw a significant increase in population.

Wooloowin

Wooloowin is one of Brisbane’s most sought-after suburbs for renters. It had an increase of 11% in median rent and a population growth rate that was close to 18%.

Northgate

Northgate | 10 Best Brisbane Suburbs For Property Investing | Locate Property

\Northgate is a very popular suburb among renters, with plenty of demand for properties and the median rent increasing by close to 11%. The population also increased substantially year-over-year.

Seven Hills

Seven Hills was one of the neighborhoods that saw an increase in median rent prices, and it is also a neighborhood where there has been significant growth.

What Exactly Is A Property Cycle?

What Exactly Is A Property Cycle?

Most people are familiar with the term Property Cycle, but not many know exactly what it means. Property cycles have a long history, and it is important to understand them if you plan on investing in the market. Property prices are cyclical and will always follow an up & down patterns over time. Property cycles normally last about 10 years but this can differ depending on a range of factors.

Property cycles are controlled by two competing factors:

  • Property demand (wanting, needing, and affordability of property)
  • Property supply (what is available to purchase in the market)

If Demand exceeds Property Supply, property prices will generally go up. If the property supply exceeds property demand, then property prices will generally go down whether that be for sale and/or rent.

But what causes the prices to fluctuate?

We have consistent growth in population and we are of the few countries that have been recession-free for some time now. But this won’t continue forever.

Some of the other factors that may affect the property cycle are:

  • Unemployment (amount of people looking for work)
  • The economy and currency markets (how the government manages its debt & interest rates)
  • Property affordability (what can you get for your money)  – Property Supply & Property Demand.

As people start to buy property, like at the time of writing this article, the value of a property starts to rise. This is the effect of limited supply with increasing demand.

We have COVID to thank for the current upward surge we are experiencing right now.

At the same time, Developers, Builders, and Home Owners will start to increase stock to the market to capitalise on this sudden increase, which in time will lead to an oversupply, which in turn results in a slump in property prices and rent reductions.

What Are The Costs of Property Investing?

What Are The Costs of Property Investing?

Whilst investing in property is a popular and successful way to build wealth for you and your family, it’s a smart decision to be prepared for any potential surprises that may arise as a result of that investment. If not managed correctly accrued expenses can build quickly.

Whilst you are working out which upfront and ongoing costs will apply to your investment, talking to a property-specific accountant about what might be tax-deductible is always a good idea before signing on the dotted line. 

Some of these items may be:

  • Purchase costs
  • Loan establishment fees
  • Mortgage insurance
  • Purchase of whitegoods or appliances
  • Utility connections
  • Stamp duty
  • Conveyancing and legal fees
  • Interest on the loan
  • Building and landlord insurance
  • Strata fees
  • Land tax
  • Council Rates
  • All property management fees
  • Property maintenance costs
  • Accountancy fees

It’s important to do your research. Talk to the Current or past Property Management firm and get copies of the Rates Notices, Body Corporate and understand the local area where you are investing. A little research now could save you thousands down the road.

Top 10 Suburb Features To Look For When Investing In Property

Top 10 Suburb Features To Look For When Investing In Property

Picking the right suburb for your investment, can be the difference between thousands of dollars in profit. Check out our Top 10 Suburb Features to look out for when you’re investing in property.

1). Character Suburbs

Big Trees, wide streets. Heritage neighbourhood and Period architecture. Real Estate “character” suburbs usually increases in value more rapidly than the newer “clinical” suburbs that are developed, often in outer rim locations.

These locations offer something different and unique to the traditional ‘4 walls & a roof’.

2). Close to Public Transport

Public transport is essential for both locals and investors alike. Public Transport is also one of the first indicators of population growth in an area, so it’s essential that your suburb has easy access to the bus, train and other form of transport. Especially in this COVID climate, where we see more and more flexible work from home arrangements.

3). Close to quality sort after Schools

The better the school, the higher the demand.

Real estate prices are driven by the excellent education you can get in an area. This is why Real Estate agents emphasise this when listing a property for sale or rent. In addition to the demand of quality schools driving up residential real estate prices, it also illustrates increased population growth as more families move into an area where the good schools are located.

4). Low Crime Rate

Real estate prices are often driven by the crime rate. If a suburb has a high crime rate, then investors and homebuyers will be less likely to invest in that area. Since Real Estate is all about location, it’s important you pick one where your tenants can feel safe.

5). Close Proximity to the CBD

Real Estate prices often climb the highest if they are located within a 10 km radius of the CBD. Real Estate agents keep this in mind when listing a property for rent or sale. This is why Real Estate agents focus on the proximity to the CBD, as they know it’s one of the biggest factors that will increase property prices.

6). Community Features & Amenities

Community Features & Amenities | Top 10 Suburb Features To Look For When Investing In Property | Locate Property

Proximity to community features such as quality coffee shops, bars, shopping centers will help drive the demand of the neighbourhood. Keep an eye on the activity of new and exciting options opening in that area. “The Buzz” or “Hype” for an area will attract new money, new buyers and is a great indication for future population growth.

7). Proximity To Major Infrastructure

It’s important to be close to, but not “next” to, transport hubs, key freeways/motorways, major medical facilities, and hospitals.

8). Gentrification

Keep a look out for areas on the brink of gentrification, or at least those in the process of improving their infrastructure. Getting the balance and timing right is key, so spend some time in the area and do your research. Don’t be afraid to invest in a good street location with the knowledge that some simple, low-key renovations strategies could amplify the properties value.

9) Public Parks, Pools & Play Areas

Public Parks, Pools & Play Areas | Top 10 Suburb Features To Look For When Investing In Property | Locate Property

Let’s face it, the allotments are getting smaller and smaller, and providing good facilities for the kids to run a muck can be a godsend on the weekend. This is quite a heavily sort after feature when buyers come through the open homes, so investigate just how close these facilities are to the investment.

10) The “IT” Suburbs.

Activity builds activity.

You often see plenty of splitter lots, renovations, investments, and developers taking an interest in a suburb if the suburb is now talked about around town. Find the bargain in this location. Worse house, best street type situation, and you’ll always be onto a winner.