At Great Ocean Road Real Estate we regularly assist landlords, buyers and sellers in relation to rates of return (yields) for residential real estate across all sectors of the markets in Torquay, Jan Juc and districts.

Yields are generally uniformed though can vary subject to location in particular. Other factors affecting returns include age and presentation, proximity to services and facilities and naturally, house size and format.

As a general guide, local returns average around 4 % gross of current property value for permanently let residential homes. Permanently let furnished houses attract a higher rate depending on the quality and extent of the furnishings and appliances installed. As a guide, the cost of the fit out would normally be amortised over a ten year period (average useful life) and the commencing rental would be increased by such an amount. This figure would then be included in the calculations for future rental reviews. Example: Fit out cost $ 30,000.00 divided by 10 years = $ 3,000.00 divided by 52 weeks = an additional $ 57.00 per week to be added to the market rental at commencement.

Current indicators are that rentals will continue to increase in the face of unprecedented demand. Increases in property value are driven in part by returns, and vice versa – rising property prices increase rentals, as returns required to service investment loans keep pace in a normal market. It also follows that rising interest rates put pressure on rental levels.
Current local vacancy rates are at all time lows with demand by far outweighing supply. All sectors of the market are attracting multiple applications of good quality, and in some cases potential tenants are offering rentals above listed market price or advance payments to secure a property.

Conclusion … if you are considering investing in a rental property or selling one, please give me a call. If you are seeking a tenant for your property …please call me now!

This weekends Open Houses:
Torquay
Saturday 21st November 2009
11:00am – 11:30am 7 Highlander Street, Torquay
11:00am – 11:30am 22 Conside Drive, Torquay
12:00pm – 12:30pm 30 Highlander Street, Torquay
1:00pm – 1:30pm 19 Headland Drive, Torquay
2:00pm – 2:30pm 7 Royston Lane, Jan Juc
3:00pm – 3:30pm 3/20-22 Surf Coast Highway, Torquay
3:00pm – 3:30pm 4/20-22 Surf Coast Highway, Torquay
Sunday 22nd November 2009
12:00pm – 12:30pm 6 Charles Lane, Torquay
1:00pm – 1:30pm 2/15 Koomeela Drive, Torquay
2:00pm – 2:30pm 3/20-22 Surf Coast Highway, Torquay
2:00pm – 2:30pm 4/20-22 Surf Coast Highway, Torquay
3:00pm – 3:30pm 40 Bells Boulevard, Jan Juc

If you are in town this w-end, please feel free to come to a viewing.

See you on our beautiful Coast.

Kind regards

Geoff Bennett
geoff@greatoceanroadrealestate.com.au
0458 513 860

Steve Ryan Photgraphy

A year ago today we were marketing 79 listings across Torquay, Jan Juc and districts excluding land subdivisions. A year ago this week the RBA dropped the standard variable rate by 75 basis points – the largest in years. A year ago today buyers and investors were sitting on their hands and we were calling the market ‘the wait and see’ arena in the face of some of the worst outlooks in decades. Sales locally were down by as much as 59% in some sectors of our market against 07-08 results. Yet ……a year ago today well located, well positioned and well presented properties still sold in this great place.

Today – Despite Great Ocean Road Real Estate, Torquay establishing itself among the market leaders locally, we are currently marketing 59 exclusive listings and enquiry is not only buoyant, it’s genuine and for the most part well qualified and ready to buy. The market has changed dramatically for the better since May of this year and with the exception of October; July was a record month for us in terms of volume and prices achieved. Notably, 22 of our sales since June were for properties that have been on the market for periods in excess of seven months and five of these had been on the market over 11 months – thank you to those sellers for their patience and trust in our abilities and marketing net!

Current selling times have come back dramatically and are nearing late 07 campaigns and our recent auction sales have exceeded reserves i.e. Competition has returned. Availabilities across the towns are falling as we move into the traditionally ‘ hot ‘ summer selling season and that means that if you are looking to buy ,it would be prudent to act now.

If you are thinking of selling……please call me!! We are selling more than we can replace and the buyers are banking up out front – fugitively speaking! See you on the Coast. Kind regards -Geoff Bennett – 0458 513 860.

Steve Ryan Photography