MARKET SOON TO BREAK 2017 PEAK A rebound in capital gains has experts anticipating the market will soon top its previous peak.

BEYOND THE BRICKS Major real estate brands unite behind a 3-stage bushfire recovery plan.

RECENT SUCCESSES The sales you need to know about.

RENTS RISE, YIELDS COMPRESS Rents were up four tenths of a per cent in February.

AUTUMN RENTAL PROPERTY CHECKLIST Now’s the time to action your checklist to keep your investment property in tip-top shape.

A BETTER CUSTOMER EXPERIENCE Reviews from happy customers

A rebound in the pace of capital gains across the Australian housing market has seen an upward trajectory in every capital city except Darwin, according to CoreLogic. Sydney and Melbourne saw the strongest capital gains, with +1.7% and 1.2% respectively, while ALL other capital cities saw modest rises – the only exception being Darwin, which declined 1.4% in February after posting a +0.3% rise in January. Looking at the annual figures, Sydney & Melbourne have moved back into double digit growth rates, with values up 10.9% and 10.7% respectively over the 12 months to February. This indicator matters because these two cities act as a bellwether for market trends nationally. Monthly change in capital city home values MONTHLY ANNUAL Sydney 1.7 % 10.9% Melbourne 1.2% 10.7% Brisbane 0.6% 1.9% Adelaide 0.1% 0.4% Perth 0.3% 4.0% Hobart 0.8% 5.0% Darwin 1.4% 7.8% Canberra 0.8% 4.1% National 1.2% 7.3% Perth soon to turn the corner? Perth homeowners will be delighted to see that the annual rate of decline in house prices has slowed from 5.6% last month to 4% this month. We anticipate it won’t be long before this market returns to capital gain, as a geographical broadening in the recovery combines with low mortgage rates and better access to housing credit. However, values remain 21% below the peak.

Melbourne the latest to break 2017 peak Melbourne was the most recent city to stage a nominal recovery, with housing values surpassing the September 2017 peak last month. Melbourne has joined with Brisbane, Canberra, Hobart and Adelaide where housing values are also tracking at record highs. Sydney anticipated to reach previous peak by May Despite posting the most rapid recovery trend amongst the capitals, Sydney housing values remain 3.7% below the 2017 peak; based on the rate of growth over the past three months, Sydney housing values could stage a nominal recovery by the end of May this year. Regional markets lag city markets Regional markets are generally lagging behind the capital cities, with housing values only 1.4% higher over the past twelve months compared with a 7.3% rise across the combined capital city markets. The diversity across regional Australia is extreme, with drought affected areas impacting the regional index. Meanwhile, the regional centres adjacent to the largest capitals, as well as coastal lifestyle markets, show a stronger performance. Will Coronavirus concerns dampen recovery? So far, Coronavirus seems to have had little impact on the property market, however, significant impacts on the share market are affecting confidence and economic changes are already being felt. Adverse impacts on export sectors such as tourism, commodities and education will likely weaken consumer sentiment and the economy more generally. Despite a potential cut to official interest rates, any further deterioration could start to slow the market’s recovery momentum.

MARKET SOON TO BREAK 2017 PEAK

BEYOND THE BRICKS Australia’s real estate agents have put their normally fiercely competitive interests aside and united nationally in support of Australian homeowners, communities, wildlife and economies that have been affected by the bushfire crisis. More than 30 major national brands have pledged nearly $1 million in corporate brand donations and offices across the nation are underpinning further fundraising with sausage sizzles, gold coin open home donations, and other local activities. We’re committed to working together to deliver a three-phase recovery plan that will provide cash relief, support rebuilding, and then economic restoration – especially in tourism regions. We have witnessed the tragic loss of property and lives in the communities where we live and work. The cost to our native flora and wildlife is immense. By working together, we intend to restore hope for the future, help people rebuild their lives, and then help local economies get back on their feet. Please give generously.

VISIT www.beyondthebricks.com.au/firstnational?

RECENT SALES SUCCESSES

50 GORDONIA DV REGENTS PARK QLD SOLD $409,000

24 GLENDALE CR BROWNS PLAINS QLD SOLD $320,000

1/31 FURZER BROWNS PLAINS QLD SOLD $242,000

8 ELMWOOD CRT BORONIA HEIGHTS QLD Sold $292,000

3 HOLMES CRT BROWNS PLAINS QLD SOLD $335000,

9 SAMANTHA ST BORONIA HEIGHTS QLD SOLD $310,500

3 JEAN ST LOGANLEA QLD SOLD $225,000

28 BOTTLEBRUSH DR REGENTSPARK QLD SOLD $343 ,000 ,

www.llr.com.au 07 3800-4000

RENTS RISE MARGINALLY WHILE YIELDS COMPRESS

Nationally, rents were up four tenths of a percent in February, taking the annual change in rental rates to 1.4%. Rental growth generally remains weak across most markets, however, the recent trend has been towards a subtle rise in rental appreciation. Twelve months ago, the national rental index was rising at an annual rate of just 0.4%, according to CoreLogic. The improvement in rental rates can be attributed to tightening rental supply. Housing finance data shows investor participation in the housing market is near record lows and new supply additions are tapering. Hobart remains the tightest rental market, with rents up 5.5% over the past twelve months, followed by Adelaide (+2.3%) and Perth (+1.9%), while rents are still trending lower on an annual basis in Darwin (-1.6%) and Sydney (-0.3%). Monthly change in capital city home values MONTHLY ANNUAL Sydney 1.7 % 10.9% Melbourne 1.2% 10.7% Brisbane 0.6% 1.9% Adelaide 0.1% 0.4% Perth 0.3% 4.0% Hobart 0.8% 5.0% Darwin 1.4% 7.8% Canberra 0.8% 4.1% National 1.2% 7.3% Gross rental yields are swiftly compressing With housing values rising more rapidly than rental rates, gross rental yields are swiftly compressing. Across the combined capital cities, the gross yield was tracking at 3.48% in February; the lowest yield reading since February 2018. The current gross rental yield is also only nine basis points away from record lows. Gross rental yields in Sydney are tracking to new record lows each

month, falling to just 2.99% in February. This is occurring as housing values surge higher against a backdrop of falling rents. Darwin and Hobart shine Despite overall weak housing market conditions, Darwin gross rental yields are the highest of any capital city at 5.9%. However, this is a reflection of housing values falling faster than rental rates, rather than growth in rental values. The strongest yield dynamic is in Hobart where overall tight housing conditions have pushed gross rental yields to 5.0%, providing a total return (gross yield plus annual capital gain) of 10.5%. Although gross rental yields are trending lower, so too are mortgage rates. At the end of January, the average three-year fixed rate for an investor mortgage was 3.48%. This is only marginally lower than capital city gross rental yields, implying investors will be finding it hard to locate a cash flow positive investment property in low yielding markets like Sydney and Melbourne. Capital gains rebound A rebound in the pace of capital gains across the Australian housing market has seen an upward trajectory in every capital city except Darwin, according to CoreLogic. Sydney and Melbourne saw the strongest capital gains, with +1.7% and 1.2% respectively, while ALL other capital cities saw modest rises – the only exception being Darwin, which declined 1.4% in February after posting a +0.3% rise in January. Looking at the annual figures, Sydney & Melbourne have moved back into double digit growth rates, with values up 10.9% and 10.7% respectively over the 12 months to February. This indicator matters because these two cities act as a bellwether for market trends nationally.

As summer winds down and the air gets a bit crisper, there’s no excuse for overlooking your investment property’s management. You always want your investment property to attract as much interest as possible and the change of season offers a good opportunity to make this happen. If you're in between tenancies or just looking to make some improvements, here are some things to think about. Gutter time - Make sure all the guttering, pipes and downspouts on your property are up to scratch. Faulty pipes can cause water damage to your property's exterior, so check for rust and corrosion, and clear out any built-up debris. Cooler weather brings rain, so inspect the roof for any weak spots or leaks that could create problems in the long-run. You want to avoid any issues that could discourage tenants. Ask us for a condition report and specifically ask that the condition of your guttering is checked. Seal it up - A warm, dry and healthy house will appeal to all tenants. Mould and dampness are not easy to get rid of, once established, and they’re one of the most common causes of problems between tenants and landlords. So, prevent these problems before they start. Ask us to check external doors and windows for gaps, cracks or faulty locks. Safety check - Heaters and fireplaces are fire hazards during the cold months, so inspections are important. Property managers typically check smoke detectors as part of their condition reporting regimes as well, but if you’re self-managing, you need to make sure your property’s smoke detectors are working and properly positioned. Clean - Why wait until spring to clean up your rental property? Gardens can become tatty during the cooler seasons, so prepare the greenery by weeding and replenishing the garden beds. A property with a lovingly tended garden will almost certainly attract a tenant that appreciates your efforts and will follow your example. Tax Tips - As we head into autumn, the end of financial year isn’t far off either. That means it’s time to think about the other things you could be doing to maximise your rental property’s yield before you lodge this year’s tax return. Tax experts recommend that rental property owners obtain a Tax Depreciation Report before end of financial year. For an investment of a few hundred dollars, you can potentially add thousands of dollars to your annual return. We recommend BMT Tax Depreciation.

A BETTER CUSTOMER EXPERIENCE

YOUR INVESTMENT PROPERTY AUTUMN CHECKLIST

We strive to consistently deliver the best possible customer experience by

putting your interests first, at all times.

I have been dealing with Robyn Houston for near on 4 years , throughout the time of Robyn Managing my investment property’s Robyn has always been very thorough & made sure that my property’s have been kept in tip top shape , Cannot fault Robyns Communication & Professionalism, Highly recommend to anyone looking for a great

property manager.

Shane – Landlord

This is my first experience of renting through an agent and I couldn’t have asked for nicer people. Sandra replied to my initial query and as she was going to be away Sandii took over. Sandii has been prompt answering my queries, on time for appointments, always professionally presented and extremely friendly and helpful. My tenant arrives this week, I could not have picked a better group of people to handle my rental. Thank you Sandii and Sandra. Landlord

Friendly, very helpful and knowledgeable staff. Our Property Manager, Coco was particularly thorough, professional and a pleasure to deal with. It's obvious that she cares and tries her best; what more could you ask for in a service, not to mention a human being. Amazing! Steve Oh – Landlord

I am extremely satisfied with Mark's service, being able to obtain the desired price within a couple of weeks after being placed on the market and having the sale totally completed within 2 months was very good. During this time I was kept informed of all progress which was reassuring as I have never had to do this before. Seller

I have had a long period of professional and positive interactions with the staff here, for some years in fact, and would not hesitate to recommend them, particularly Sandra Reynolds: but all have proven to be trustworthy and dedicated to fulfilling the needs of their clients Donna J - Landlord