Welcome to the February 2007 issue of our newsletter and I unashamedly, yet politely, commence with an “ask” of you. Put bluntly, we want your advice and input on how we are doing and what we need to do to improve our service standards. To implement this, over the coming weeks both I and my fellow director, Damien Parker, will be speaking to all of our landlords to seek your views and to also mention a number of exciting initiatives we have planned for our rental division. Most notably, we can use technology far better to get you information faster, plus also give you a portal whereby you can obtain past documentation on your property portfolio at any time of the day or night 365 days of the year.

6th February, 2007	Waitangi Day
9th February, 2007	Ash Wednesday
14th February, 2007	Valentines
19th, 20th & 21st February 2007	Chinese Lunar New Year
February Birth Flower	Violet
February Birth Stone	Amethyst

ABIX Summary
The Queensland Legal Practice Tribunal has suspended the practising certificate of a Gold Coast lawyer for four months. The solicitor was involved in an illegal conveyancing company that participated in a predatory real estate investment scheme. The estate agent that referred "marketeered" investors to the solicitor via the conveyancing firm was charged with several violations of consumer protection legislation. The agent also lost a defamation case against the "Courier Mail", which had described him as a "rip-off merchant".

Our Comment: We remind all clients that the selection of an agent should not be made hastily. At the very least ensure that they are members of the Real Estate Institute Of Queensland and abide by their code of ethics. For the record, we are very active members and supporters of the REIQ and our position on ethics is well known and can be found on our website. We make no bones about it…we work 110% for our landlords and also our clients who entrust their properties to us to sell.

The Consensus Is No Interest Rate Rise
Following the release of the inflation figures for the December quarter, the Reserve Bank of Australia (RBA) is unlikely to raise rates any time soon, economists say.

Price pressures eased significantly, according to the consumer price index (CPI) report that showed a drop in inflation for the first time in more than eight years.

According to all 17 economists that AAP surveyed recently, the cash rate will remain on hold at 6.25 per cent when the RBA board reconvenes in Sydney for its first meeting of 2007 on February 6.

Some economists are also giving us a reprieve for some time; like AMP Capital chief economist Shane Oliver who believes rates were on hold not only in February, but for at least the next six months.

What’s more, some economists are now predicting a rate cut at the end of the year.

However, be ye warned; economists are not always right.

“I’d Rather Rent & Marry My Girlfriend Than Marry The Bank!”

Is this the prevailing view of the emerging Generation X’s?

It might well be according to recent statistical reports from the Australian Bureau of Statistics (ABS) on social trends in the 20 years from 1981 which shows the proportion of home owners aged between 25 and 34 dropped seven percentage points.

As would be expected, couples with families are still the biggest group of mortgage holders. However, Generation X, who are marrying later, have started looking at other ways to spend their money and mostly on their pleasure pursuits.

They no longer see rent as dead money – merely a cost of establishing a residence and preferably a residence that is close to the facilities they need and want.

Proximity is a big issue for them.

Now, this train of thinking makes rental properties in and around the Robina and Varsity Lakes area highly desirable and we believe that eventually demand will see an increase in rents obtained. For all of our investors, you can be assured that we are abreast of the market trends and, as part of our procedures, always look at the possibilities of rental increases when leases are up for renewal…but as we have pointed out on a number of occasions, there are a number of important issues to weigh up before proceeding; not the least of which is the hassle-free tenant who looks after the property as if it were his/her own.

And now for a review of recent media articles related to property

Rents tipped to climb 40 per cent
Australian Property Investor Magazine - Page: 8 : December 2006
No author supplied for original article

ABIX Summary
Australian rents are forecast to rise over the five years from 2006. BIS Shrapnel predicts that housing starts will fall, while underlying demand will remain strong because of higher net overseas migration. Rental markets were already tight and rents would be lifted higher by the imbalance in supply and demand. Average rentals are expected to rise by five per cent in 2006 and up to 40 per cent in Sydney over five years.

Our Comment: The laws of supply and demand also apply to the Gold Coast where demand outstrips supply.

REIQ Journal - Page 10 : January 2007-02-06 Compiled by The Real Estate Institute Of Queensland State Parliament has passed legislation making the installation of smoke alarms in residential properties compulsory. Emergency Services Minister Pat Purcell said the successful passage of the Fire and Rescue Service Amendment Bill 2006 was an important step forward for fire safety in Queensland. In rental properties, landlords will be required to install smoke alarms, replace them when needed, and test and clean them 30 days before a new tenancy starts. It will be the responsibility of tenants to annually clean and test the smoke alarm and check the battery.

ABIX Summary
The strong property market has allowed the Queensland Government to revise revenue for 2006-07 upwards. The property sector has remained stronger than expected. In June 2006, the Government estimated that stamp duty would bring in revenue of $A2.12 billion. This estimate has been increased by 10 per cent to $A2.31 billion. Land tax has been revised from $A500 million to $A528 million, while duties from mortgages has been revised from $A310 million to $A315 million. However, the property industry feels that the strong position should allow tax and economic reform.

Our Comment: Qld stamp duty on properties is outrageous with the actual cost of tending a transaction where the stamp duty is $20,000 being estimated at a mere $179!

Missing property deductions
Intax - Page: 19 : November 2006
No author supplied for original article

ABIX Summary
Property investors and their advisors frequently omit deductions from tax returns in error. As at the end of 2006, there are three deductions which are commonly missed. Contract adjustments upon the sale of property, such as council rates and land tax, are claimable under s8-1 of ITAA 1997. Depreciation of a strata title's common property is also often missed, and may include communally owned items such as elevators, fire extinguishers, pool filters and security intercoms. Finally, the cost of structural improvements is also subject to depreciation.

Our Comment: Make sure you are claiming every deduction to which you are entitled. Double check with your tax advisor.

Natural Light - Important For Our Health
Bringing more natural light into our daily lives may be more important for our health than we realise. Seasonal Affective Disorder (SAD) is known to be related to how much sunlight we receive. Individuals with SAD may experience emotional depression, a drop in physical energy, increased appetite, and increased need for sleep.

According to WebMD Medical News, our mood is influenced by a complex web of relationships between sunlight, melatonin (the sleep hormone) and serotonin (the hormone associated with wakefulness and elevated mood). As darkness falls, our melatonin levels naturally increase and as the morning light emerges, melatonin levels decrease.

Serotonin levels increase when we are exposed to bright light – a major reason why moods tend to be more elevated during the summer. It is known that bright-light therapy can bring benefits to people with SAD because light affects the melatonin-serotonin system and elevates mood. In fact, some researchers are concluding that light therapy may help to alleviate SAD symptoms faster than antidepressant drugs. In a review of clinical trials of light therapy, Dr. Daniel Kripke at the University of California, San Diego reported that light therapy benefits not only SAD patients but also people suffering from other forms of depression.

Okay, if you want to boost the natural light flows of your property, think skylights, an easy and cost effective way to add more light - reputedly 30 percent more light than vertical windows.