Victoria’s vacancy rates are still continuing to plummet with the Inner city being the hardest hit. People are finding it virtually impossible to find a rental property within 4km of the CBD. This difficulty in finding accommodation is forcing people out of the city and into the suburbs where vacancy rates are also hitting critically low levels at approx 1%. We have good tenants frantically searching for properties but finding that they are up against 10-20 applicants. As a community, we urgently need more rental properties; the supply is simply not keeping up with the enormous demand.

The biggest talking point in Real Estate currently is the rising Interest Rates and the effect that these are having on the market. Are they going to keep increasing?? And if so, how high will they go?? With these points in mind, it is going to cost more to finance your investment property. How does this relate to your Property Manager?? It is imperative that your rental property is at the current market rate to ensure you are getting the maximum return for your investment. To counteract rate rises, regular rental increases should be implemented by your property manager. For assistance with managing your investment property please call one of our three dedicated Property Managers Carly, Lisa or Jess

As this newsletter goes to press we are coming off one of the busiest months we have experienced in my 22 years in real estate. The market is hot right through the price ranges up to $600,000, with the upper end of the market about to be tested with a couple of landmark properties in the million dollar plus category about to hit the market. There has never been a better time to sell and seemingly the interest rate hikes thus far, haven’t had any adverse affect at this time. I think the best advice I can give those waiting for the prices to settle, or come down is that seemingly ‘it’s not going to happen in the next few months’, depending of course on how many further interest rate increases we see. For those looking to get a top price in the current market, now is the time to strike. The autumn market this year is shaping up to be huge so don’t delay, call the Bell office nearest you for an appointment to find out how you can maximise your returns on your property today, before the clouds roll in.

“Rents have risen at their highest rate in 18 years because investors have sold property assets to boost their superannuation”, say housing economists. Just when there was an increasing demand for rental properties there is a cutback in rental properties. Under the changes to superannuation laws, investors could deposit up to $1,000,000.00 post tax into their super before June 30. So now might be a good time to buy a rental property or another investment property and get a good return on your investment.

And the market continues to remain strong with properties in the $200,000 - $400,000 range being snapped up in the first couple of weeks, quite regularly within a few days of being placed on the market. Because of this high demand prices are definitely on the increase with a high expectation that the market will increase 12%-15% over the 07-08 financial year, As we move closer to the new roads infrastructure in the outer east coming on line. With recent wild fluctuations in the stock market Real Estate is again on the short list of preferred investments. Low rental vacancy rates and therefore increasing rents are providing investors with great returns. Coupled with the expectation for increased capital growth the outlook is excellent for anyone looking to sell or purchase Real Estate over the next few months. As always we are ready, willing and able to provide advice on how to maximise returns from your Real Estate investments.

With the end of the financial year fast approaching, it is essential for Landlord’s to get the right advice when it comes to their investment property. Have you found yourself pondering the question, “What can I claim?” Investors are often under scrutiny for claiming incorrectly however, there are many investors who do not know exactly what they can actually claim. It is very important to discuss this issue with your tax consultant to ensure you are claiming everything that you can legitimately claim. A great source for researching claimable items is a publication issued by the ATO- Rental Properties Guide 2006. To access a copy of this simply visit the ATO website www.ato.gov.au and type the title in the search feature on the site. This publication can be downloaded or alternatively you can order a copy online to be sent to you.

A steady balanced market with signs that we may see a sellers’ market before the end of the year, particularly with billions of dollars of roads infrastructure set to open early in ’08. All is looking good for an upward trend in prices towards the latter part of ’07 and into early ’08. Smart investors are taking the opportunity to get in early before demand outstrips supply, hence forcing the prices up. Quality properties are selling quickly, but the real money is in being able to spot a diamond in the rough, a property that with a bit of vision and refurbishing will be worth substantially more than the initial investment. Visit our website and discover the gems that are available, or call any one of our well located offices. We’ll be glad to help you today.

With the weather finally turning to something a lot more bearable, this Autumn brings with it the fabulous golden tonings of all the various deciduous trees and the opportunity to purchase real estate in the Dandenong Ranges before the cycle sends prices soaring, as happened in 1987 and 1997. Buyer interest across the board seems to have increased dramatically over the last couple of weeks particularly in the sub $400,000 price ranges. Land seems to be the flavour of the month with 5 lots selling (2 of these have been on the market for over 2 years). Land of course is a fast dwindling commodity as there is very little subdivision allowed in the area, so grab the opportunity to invest if you see land available for sale and you’re certain to reap the rewards in years to come.

The power we use when were not using power is to be targeted in the push to reduce greenhouse gas emissions, the Ministers for the Environment and for Industry and Resources announced this week. `Standby power occurs when electrical appliances such as televisions, VCRs and computers are not being actively used and look like they are turned off but are actually in `standby mode, consuming electricity and generating greenhouse gases. The Federal and State governments will work with industry to ensure that, by 2012, all electrical appliances are regulated to meet a `one watt target. Currently some appliances use up to 25 watts for their standby mode. This will save greenhouse gas emissions and have significant economic benefits. Around ten per cent of all energy used by Australian households is made up of standby power. More information about standby power is available on the Energy Rating web site at www.energyrating.gov.au/standby.html, which lists the following facts: • A computer and monitor left on for a year generate the same amount of CO2 as a car traveling from Sydney to Perth. • Monitors account for around 80 per cent of the energy consumption of a typical computer and monitor combination. • Printers spend approximately 95 per cent of their time sitting idle. • Home electronics products currently use anywhere between 1 watt and 20 watts on standby, and can be in this mode for between 16 and 22 hours per day. Quartile Research Nov 06

Spring is in the air and by all accounts the market is “steady as she goes”. Having two rate increases this year has had a negative impact for first home buyers and low income families, coupled with the rising cost of petrol. These costs are impacting on the lower priced properties as some buyers are priced out of the market. Rising interest rates often provide the reason not to invest. If rising interest rates put a cap on property prices, the tenancy pool will start to swell as fewer people move from renting to owning a home. It follows then that rental prices increase as demand is higher. Prioritise saving for a deposit now and you’ll be able to invest sooner than you think. If sound money management is what you are looking for, then check out www.understandingmoney.gov.au, an easy website to follow with some great tips! We are expecting a busy spring! Preparing your house for sale can be a daunting task. To put your home’s best face forward is crucial if you want to get close to your asking price and sell quickly. A few tips for a successfull sale: - Presentation, tidy the garden, mow the lawn - Clean the windows - Be sure the doorbell works - Bathrooms and kitchen need to be spotless - Make sure the house smells good - Fresh flowers. If you are not sure, give one of our agents at Bell a call and they will assist you where they can!