<html><body>
A Melbourne real estate agent was ordered to serve 200 hours of community services after illegally claiming a First Home Owner Grant (FHOG) despite already owning a home, according to the State Revenue Office (SRO) of Victoria. 
The man pleaded guilty to the First Home Owner Grant Act 2000 and Tax Administration Act 1997. His legal team told the court that he was unclear about what he was doing and the repercussions of his actions. The magistrate dismissed this claim due to the nature of the man’s occupation.
The man first bought a property in St Kilda in 2005 and received the FHOG. The grant was later reclaimed after the SRO found he did not meet the residency requirements.
In 2009, he purchased a second property in Chadstone and applied unsuccessfully to receive the FHOG. The SRO rejected the application on the basis that he had not repaid the FHOG for his St Kilda property.
After repaying that amount, he once again applied for the FHOG. During this period he acquired another property in Moorabbin. When SRO investigators questioned the purchase of this property, he provided a statutory declaration stating the Moorabbin property was for investment purposes and he had never lived there.
Upon receipt of this declaration, he was then paid a $16,000 FHOG.
The SRO conducted further investigations and found that the man once again did not meet the residency requirements to receive a FHOG.
The court heard that the man was extremely sorry and had learned an important lesson from his actions. He was then sentenced without conviction to a 24-month community correction order that requires him to perform 200 hours of community work, amongst other conditions. He was also ordered to pay an extra $203.60 of out-of-pocket costs to the SRO within a month.
</body></html>

dleow-BGaNPbHWyK

Melbourne real estate agent pleads guilty to First Home Owner Grant offences

<html><body>
Purpose-built student accommodation units are sometimes popular choices for investment properties. Statistics show education is Australia’s fourth-largest export commodity, while international student numbers are growing at around 5% per annum.
According to Jones Lang LaSalle’s director of student accommodation services Conal Newland, Australia is facing a shortage of purpose-built student accommodation blocks. Compared to popular study destinations such as the United Kingdom and the United States, Australia falls behind in supplying such accommodation for students.
However, we recently reported a sale of a one-bedroom unit in Melbourne located in a student accommodation building that sold at a $77,000 loss, but reflects a 10.76% gross yield.
This raises a few questions. What are the borrowing practices for a student accommodation unit? Are student accommodation units good investments? 
Mortgage broker Mortgage Choice spokesperson Jessica Darnborough told Property Observer that most lenders will put restrictions on borrowing for purpose-built student accommodation as they have a “unique resale value”.
“Some (lenders) will lend only up to 80% and some will go lower, some will put it at 0%. The person will need to pay outright or borrow against what they own. The lender will look at whether or not, if the loan goes bad, how easily they can sell the property,” she said.
She notes that student accommodation units are not easy to resell, as they have a very specific target demographic.
For property investors looking to purchase purpose-built student accommodation, she recommends doing your due diligence as lending restrictions often change with market conditions.
“Have all the collateral that you would normally have for an investment property. Have your tax returns on file, ready to go. Make it as easy for them as possible - make sure you have everything you think they need,” she said.
If you are unsure, Darnborough recommends seeing a mortgage broker, who will be able to advise you on which lenders are lending, and which lenders have the biggest loan to valuation ratio (LVR).
Newland shed some light from a developer’s point of view. He asserts that there is a shortage of “quality, purpose-built accommodation out there”. There is an undersupply from universities, and most private sector accommodation for students are conversions from old residential properties.
As a result, developers are coming into the Australian market, building quality student accommodation with professional management.
“They build the accommodation, hold onto the investment, and operate it for the long-term,” Newland said.
He notes that Australia has a “favourable” yield profile. Jones Lang LaSalle was involved in the sale of RMIT Village, which Newland says will net a yield of “between 2.75-8%”.
“Compare that to the traditional aspect, in the residential sector, those returns are pretty good,” he said.
“Melbourne is facing such a chronic undersupply of purpose built accommodation. There’s so much potential growth in terms of developing accommodation. If developers build quality accommodation in the right place and not overpricing, based on supply and demand, that accommodation should sell itself in today's marketplace,” he added.
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
</body></html>

Can student accommodation be a good investment? 

<html><body>
Two apartment tenants in Canberra who sued their landlord for faulty airconditioning and a failure to provide Foxtel have been awarded $3788 in compensation.
The tenants, Emilio Broso and Hyeyoung Sun, signed a 12-month rental agreement for the apartment in September 2012.
They filed a case with the Australian Capital Territory Civil and Administrative Tribunal (ACAT) on 15 July 2013, seeking to terminate the residential tenancy agreement, and compensation.
According to ACAT, The tenants contacted their property manager from Ray White Canberra on December 2012, alleging that that the air-conditioning “turned itself off every 20 minutes”, but was not satisfactorily repaired until March 2013.
Due to extreme temperatures above 30°C, the tenants alleged that they were unable to to sleep because of the heat.
In addition, the tenants alleged that the premises was not properly secure, and that despite being told Foxtel was connected in the property, it was not.
The tribunal found the air-conditioning issue was a breach of the landlord’s obligations, and ruled that the tenants be compensated $3048, 65% of the rent paid during the hot months of December 2012, as well as January and February 2013.
In addition, the landlord was ordered to compensate $610 to the tenants, the equivalent of five months’ Foxtel subscription fees.
In relation to the security of the premises, the tribunal was not satisfied with the evidence presented.
Broso told Property Observer that he contacted Ray White Canberra in November 2011 about faulty airconditioning in the apartment, but it was only fixed in March 2012.
“Ray White don’t (sic) really care about us, they sent a few people to fix up the problem, but the problem wasn’t fixed up until after five months,” Broso said.
He said that they changed a number of agents in a year and that nobody knew about the problem. After winning at ACAT, he notes that he is waiting for the payment.
Broso also alleges that he spoke to the landlord recently, and the landlord was unaware of the events that transpired with the exception of a phonecall in November 2012, that informed him of the issue with the air-conditioning. 
Ray White spokesperson Lisa Pennell told Property Observer it was “not ideal” that the repair of the air-conditioning took four months.
Providing an account of the incidecent, she said on December 12 2012 the tenant reported the issue with the air-conditioning via email, and a maintenance work order was issued on the same day. However, that particular company failed to get back to Ray White by January 22 2013. Ray White then issued a separate work order to another company, who only managed to get in touch with the tenant on January 25 this year.
On February 13 this year, the company provided an update to Ray White that they were awaiting information about parts to supply a quote. The next day, on February 14, they provided an estimate that it would be cheaper to replace the air-conditioning unit than repair it.
However, on February 20, the owner responded that the air-conditioning unit was still under warranty, and instructed Ray White to contact the company handling warranty repairs. The company then undertook repair work on the air-conditioning unit, which was completed in April 2013.
Pennell also told Property Observer that there was “extensive communication” between Ray White Canberra and the landlord throughout the tenancy. 
Responding to the tenant’s claims that Ray White Canberra changed six or seven agents during his tenancy, Pennell said, “The tenant would have had contact with a number of different people within the office during the normal course of business, including a leasing agent, receptionist, and property managers. One property manager did leave during the tenancy, otherwise the staff of the office has remained consistent.  It is normal in a modern office for various parts of the property management process to be handled by different staff, and also for staff to be able to substitute for each other in times of illness or leave.” 
She added that “numerous attempts were made to mediate the conflict prior to the tribunal hearing”, but it was unsuccessful.
Pennell also noted that the tribunal’s decision to award 65% of the rent to be paid as compensation to the tenant was “perplexing”, as cooling is not listed as an urgent repair in the ACT. She also felt the decision to award compensation for Foxtel was unusual, as the lease did not stipulate Foxtel as an inclusion.
She also said the owner is “currently considering appealing the decision.”
ACAT registrar Athol Morris told Property Observer that while a 65% compensation for four months' worth of rent is an "unusually high figure", it is "well within discretion". 
"It is clear that the landlord has persistently failed to fix the airconditioning," Morris said. 
With the Foxtel issue, Morris said, " The matter was heard, both parties were represented, the member decided it was what it was worth in this case."
Lisa Indge, managing director of property management firm Let’s Rent, advises that “best practice” for tenants should always be to report all repairs in writing unless urgent.
She says property managers should induct their tenants at the beginning of the tenancy to put all repair requests in writing, and if tenants ring the office, ask for them to send an email.
“Property managers should have systems in place to ensure (cases like this) this does not occur including a requirement that tenants report repairs in writing and a system of following up outstanding work orders,” she said.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
</body></html>

Canberra tenants sue landlord for faulty air-conditioning

<html><body>
Tasmania’s public housing waiting list has fallen to its lowest level in a decade as a result of strong investment and reform, according to the Minister for Human Services Cassy O’Connor. 
The waiting list fell by 5.4% in the three months to September 30 2013, with almost 300 Tasmanians moving into public housing. These figures come from the latest Health and Human Services progress chart.
Since 2009, the Tasmanian Government has invested about $220 million to build around 1,500 new affordable housing properties, in partnership with the former Federal Government.
Another $17 million is being invested this financial year, with another 1,360 homes that will be completed in 2016.
“A comfortable and affordable place to live is a fundamental human right,” Ms O’Connor said.
“As a progressive Government, we’re determined to help low-income Tasmanians put a roof over their head - with the security, opportunity and dignity that brings.
“The Government has an active role to play in sharing wealth and levelling the economic playing field. That’s why we’re increasing the supply of affordable housing, and reforming the sector to prioritise Tasmanians most in need,” she said.
There are some 2,000 Tasmanians still on the waiting list for public housing.
Ms O’Connor also noted that low-income families in private rental properties are also benefitting, with 1,125 Tasmanians receiving rental assistance in the September quarter, up slightly on the previous year.
At the same time, one of Tasmania’s largest affordable housing projects – named Queens Walk Apartments – officially opened last month. The first tenant, Phillip Turnbull has signed a lease, and was welcomed by Ms O’Connor.
The Queens Walk redevelopment is part of the State Government’s broader affordable and social housing strategy to support for Tasmanians on low incomes.
Stage One of the $8.5 million redevelopment is complete, which includes 16 one-bedroom units, 26 two-bedroom units, and a community room.
Formerly known as Stainforth Court, the site will ultimately provide 84 high-quality units and aims to create a welcome community for a diverse range of Tasmanians.
“It’s fantastic to be welcoming people to their impressive new homes – just in time for Christmas,” Ms O’Connor said. “Queens Walk apartments is a powerful symbol of what we can achieve if we’re brave enough to look beyond the past reputation and stigma of a place, and work towards a bright, dynamic and sustainable future. “This formerly troubled site has been completely reinvented into a fantastic home and strong community for Tasmanians who need affordable housing. “As a progressive Government devoted to supporting Tasmanians in need, projects like this are what government all about. “It should also be a great source of pride for our whole community,” she said.
Stage one, which involved two housing towers, was completed on time and on budget. Stage two, involving another two towers, is on track to be completed in April.
All units are energy-efficient and four one-bedroom units in Stage One are Platinum-standard disability units.
The project has supported 125 construction jobs for Tasmanians so far, including apprentices.
</body></html>

Tasmania's public housing waiting list falls to lowest figure in a decade

<html><body>
Ivanhoe resident Karen Zapulla’s home has been a regular fixture during the Ivanhoe Christmas Light-up. Through the years, she has loved putting up Christmas lights to spread the joy.
A mainstay on the Zapullas’ lawn is a giant blow-up Santa. Children seem to know to look out for it – many wanted to enter the Zapullas’ front porch just to have a photo with Santa.
Karen warns against giving out lollies if you don’t want a barrage of people on your front lawn.
“You can’t have a thousand people coming to your property. If you say ‘yes’ to one, there will be another ten outside the gate,” she says. 
What is the secret to her private magical winter wonderland?
“Put as many things that will make the children go, ‘Look at that!’” she said enthusiastically.
Personally, Karen puts up strings of fairy lights, a mechanical moving reindeer that lights up at night, as well as a hand-painted nativity set in the garden. 
“That’s what Christmas is all about, you know,” she said.
Karen’s husband, Sam, does most of the heavy lifting during the run-up to the Christmas season. He climbs up to the roof to install the lights and decorations each year.
Karen notes that while Sam is still able to do it, they bring in professional help when it comes to the electrical wiring around the house, as well as the outdoor areas.
“Be very careful,” she warns.
“This is quite an established area, so there are quite a few older people who can’t do it anymore,” she said.
As for safeguarding your Christmas decorations, Karen notes that there’s no guarantee even if your front lawn is off-limits to the public. She has had a few decorations taken without her permission. 
She recalls one particular memorable incident where a beloved Father Christmas gnome was stolen.
“I was disappointed that someone had come onto our property. Funny enough, after Christmas we began getting postcards from this gnome in different places from all over New Zealand,” she reminisces.
Despite hoping that the gnome would turn up the following Christmas, the Zapulla family was disappointed.
“He never turned up again. Oh well,” Karen said.
Ultimately, Karen says the Zapullas put up Christmas decorations not just to join in the festivities in Ivanhoe. While it adds to the Christmas cheer, she believes it is a reminder to spread the joy and be thankful for what she has.
“I can still remember going out to the garden at night, and a little girl of about six or seven comes up to me and says, ‘Lady, you’re so lucky to live in such a beautiful house,’” she said.
“And you know what, I am!”
“It’s to see the magic in the children’s eyes when they look at it all. It’s a lot of work, but it was worth it,” she said.
</body></html>

Christmas in Ivanhoe: Properties you must see

<html><body>
An Australian family has reclaimed a Guinness World Record title by stringing more than 500,000 Christmas lights around their home, as reported by CNN.
The Richards family, who is based in Canberra, set the record for most number of Christmas lights on a residential property with 502,165 bulbs.
They previously set the record in 2001 with 331,038 lights, but the title went to the Gay family in New York last year with a display of 346,283 lights.
This year, the Richards family decided to rise to the challenge and break the record by a long shot, so it will not be defeated for awhile. 
Their efforts paid off as Guinness World Record officials authenticated the record last month. The Richards’ property also happens to be the former Japanese embassy, with a wide driveway right in front.
Richards built a canopy over the driveway and overlaid it with lights.
As thousands of people flock to their home to view the magnificent display, the Richards family collects donations that will go towards various causes.
Two years ago, they raised $78,000 for Sudden Infant Death Syndrome (SIDS) and Kids ACT, which went towards hiring two counselors for families who lost a child to SIDS.
David Richards and his wife Janean lost a child to SIDS a decade ago, and hopes to raise $100,000 this year.
They started the project in October and spent time after work and on weekends ensuring the display would come to fruition.
“I got the last bulb up… just before Guinness arrived,” Richards said.
The lights display is expected to increase the family’s electricity bill by about $2500 a month, with the local electricity company absorbing the cost by using renewable energy.
</body></html>

Aussies set world record for Christmas lights

<html><body>
Unit owners should continue to be vigilant and monitor contractors closely during the holiday season to avoid being left in the lurch, Archers Body Corporate Management advises.
Archers notes that property owners often go away during the busy holiday season. With no presence in the building, it can be difficult to ensure contractors are completing their jobs, which can lead to unnecessary conflict and stress.
Archers Body Corporate Management managing director Colin Archer advised that bodies corporate need to carefully select licensed contractors and project managers over the festive season, and follow up on the work that they do.
“If you’re not going to be present, it’s important to have a dedicated project manager on site that is responsible for keeping track of when work should be completed,” Archer said.
“Ideally this will be someone who has a good working relationship with the complex and can monitor the actions of contractors, keep records of project goals, day-to-day activities and agreed timeframes,” he added.
For peace of mind for both contractors and homeowners, Archer recommends ensuring there is always someone to take over when contractors and employees require time off. Additionally, project estimates should take public holidays into account, to make the transition into the festive season an easy one.
Archer has listed seven tips for managing contractors during the festive period:
1. Book in early and ensure works are scheduled in early-mid December or a time when you aren’t going away, so you can be around to supervise
2. If you aren’t going to be around, ensure a trusted contact is available to monitor progress
3. Obtain emergency contact details for contractors in case you need to get in touch
4. Make sure you get a schedule of the times contractors shut down
5. Always ask what the call out rates are during the holiday season and on public holidays to avoid any nasty surprises
6. Avoid calling contractors out during holiday periods unless it’s an emergency to avoid paying excess fees
7. In case of an emergency, ensure your building has an up-to-date emergency plan so tenants know where to turn.
</body></html>

Unit owners, manage contractors closely this festive season

<html><body>
Looking to get away for the Christmas period but have yet to book your accommodation? We look at the five amazing holiday rentals from around the world – so even if you’re staying put for this year, you can dream about next year’s vacation.
<img alt="hallen" src="/images/stories/diane/hallen.jpeg" height="352" width="470">
Hallen, Norway
If you’re dreaming of a white Christmas, this cottage in Norway is sure to catch your eye. Located by the lake, there are plenty of ski adventures waiting for its renters in the winter. Built in 1948, the house was restored in 2008 and includes an outdoor grill, television, DVD player, and running water, of course.
This three-bedroom cottage does not have internet connection, and is the perfect place for someone looking to truly get away from the hustle and bustle of city life.
Oslo is a 90-minute drive away, while the nearest grocer is 8km from the cottage. There’s a ski resort 17km away, too.
A six-night stay at the cottage will set you back about AUD1100.
<img alt="blencowehall" src="/images/stories/diane/blencowehall.jpg" height="220" width="470">
Blencowe Hall, Cumbria, UK
An award-winning Grade 1 listed fortified manor, Blencowe Hall brings some old-world charm to the holiday season. It has recently undergone extensive renovations, bringing two embattled peele towers back into use for the first time in over three centuries. 
Located in Blencowe, this holiday rental property is self-catering and is slightly over a mile from the village of Greystoke. Greystoke is home to a pub and a village shop for all your grocery needs. It is also pet-friendly – so if your pooch would like to enjoy this beautiful property as well, it is more than welcome to run around the extensive gardens and grounds.
<img alt="edelweiss-outside" src="/images/stories/diane/edelweiss-outside.jpg" height="313" width="470">
Chalet Edelweiss
Holidaymakers wanting to splurge would be happy with Chalet Edelweiss in France, a seven-floor, eight-bedroom property that is a two-minute walk from the famous Courchevel 1850 ski resort.
With a private cinema, a 130 square metre nightclub complete with a DJ booth, dance floor and bar, a large fitness room, a double massage room and an unrivalled pool area, it is the perfect property for a getaway.
The super luxurious chalet even includes a reception area on the third level featuring beautiful views of the surrounding mountains, and a master suite which includes two dressing rooms and a private lounge, which is accessible via lift or stairs.
An eight-night stay over Christmas Eve and Christmas Day will set you back about AUD 500,000. The cost includes staff services and an in-resort driver, but food and other services will be additional costs.
<img alt="underground-motel" src="/images/stories/diane/underground-motel.jpg" height="352" width="470">
White Cliffs Underground Motel
For those staying in Australia over Christmas and New Year’s but want to escape the heat – the White Cliffs Underground Motel may be an option. Located about 1200km from Sydney, the owners suggest breaking up the journey at Dubbo or Nyngan.
The motel is on Smith Hill – and the view includes what was once an underground sea, sunsets and sunrises, as well as a brilliant night sky that’s perfect for sungazing – guided by a local expert.
Three-course dinners are served in the dining room most nights, except on Saturday where wood-fired pizza is served, and Sundays are reserved for BBQ nights.
Best of all, the resort remains a cool 22-23 degrees celsius all year round, perfect for those who want to escape the 40 degree summer days!
<img alt="alilauluwatu" src="/images/stories/diane/alilauluwatu.jpg" height="306" width="470">
Alila Uluwatu, Bali
If you've been dreaming of a slice of paradise that could be yours all year round, Alila Villas Uluwatu could just be the answer to your wishes.
Perched atop the world-famous Uluwatu cliffs in Bali, Indonesia, the Alila Uluwatu resort offers eco-friendly accommodation in five-star comfort. Choose from one-bedroom or three-bedroom villas overlooking rolling green hills or roaring waves, complete with an infinity pool and a butler to boot.
If a week or two in “paradise” is not long enough, you may choose to purchase your own villa. Make it an exclusive holiday sanctuary, release it into the rental pool managed by Alila Hotels and Resorts, or do a combination of both.
Villa owners benefit from unrestricted access to all the resort’s facilities and management services, so you can be rest assured your dream home is taken care of round the clock.
Rates during the Christmas period start from AUD745 a night.
<a target="_blank" href="mailto:dleow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
</body></html>

Five amazing holiday rentals

<html><body>
A Capital Gains Tax (CGT) has been introduced in the United Kingdom by Chancellor George Osborne for foreigners who own property but do not reside there.
The CGT tax of 28% will be introduced from April 2015. It will be imposed on the profit made by overseas investors when they sell their properties in the UK, if it is not their principal place of residence.
At the moment, CGT is only payable by UK residents. Foreigners who do not live in the UK do not pay CGT.
Conversely, foreigners who live in the UK are exempt from CGT if only one property is acquired and that is the sole residence in the UK, under the “principal private residence exemption”.
Harwood Hutton tax advisor Cormac Marum told The Independent that the new CGT could be a boon for property valuers.
“But we have to see yet whether these people will be able to make their UK property their main residence and get around the new tax. That way they would not have to pay the CGT,” he said.
<a target="_blank" href="mailto:Dleow@propertyobserver.com.au">Dleow@propertyobserver.com.au</a>
</body></html>

New Capital Gains Tax introduced in the UK for overseas investors

<html><body>
A one-bedroom unit in Springvale was Melbourne’s most affordable auction sale last weekend, according to Australian Property Monitors.
Located at 4/49 Heather Grove, the unit sold for $160,000 through Barry Plant Noble Park.
Prior to this sale, the unit last sold in 2007 for $120,000. It also sold in 1991 for $47,000, in 1988 for $43,000, and in 1986 for $34,000, according to RP Data records.
It was listed for sale on 28 November this year with a price guide of “$130,000+”, according to RP Data records.
Listing agent Nalaka Weerakoon told Property Observer the auction saw four bidders, and it was a bank mortgagee sale.
The reserve was set at $165,000, but was adjusted to $160,000 on the day.
He revealed that the current tenants had been evicted as it was a mortgagee sale, and the successful bidder was an investor.
Weerakoon also said that the property market in Springvale is doing very well at the moment.
“It’s a really good market. Compared with the last six months, I think it’s gone up by about five to ten per cent. For next year, I think it has to continually go up. The way it’s gone up now, I don’t think it’s going to stop immediately. This growth will continue,” he said. 
According to Barry Plant Noble Park’s estimated asking rent of $180 per week, the price reflects a 5.85% gross yield.
According to the latest RP Data report, the median sale price for units is $339,000, down 5.2% on last year. The average discount required to sell a unit is 4.7%, while private treaty sales average 79 days on market.
The median asking rent for a unit in Springvale is $298 per week, while gross rental yield currently stands at 4.6%.
<a href="mailto:dleow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
</body></html>

Diane Leow

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News