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Ph (03) 9600 1111
Fax (03) 9278 8830
Level 9, 365 Queen St
Melbourne, Vic 3000
Australia
Southbank Central
Inspect at
191 CityRoad Southbank
Melway: 1D M6
Mon - Sat, 10am to 5pm
Sundays 12 to 5pm |
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News & Editorials
Every week Central Equity writes a number
of news editorials which appear in Melbourne newspapers. This weeks article is posted below.
Click here
to access our archive of news editorials
11/11/00
MANAGING
YOUR INVESTMENT APARTMENT
It
is very important when buying an apartment to consider factors such
as its location and price.
Location will always bring the greatest potential for capital gain.
A well located residential property, correctly priced, will assist
in ongoing rental.
The question of who will rent my investment apartment and how will
it be managed should also be considered at the same time as making
the decision to purchase.
In Melbourne, as a general rule, properties around $215,000 to $300,000
obtain approximately gross 6% return. Therefore, on a $215,000 one
bedroom apartment, a gross weekly return of approximately $258 can
be expected. These are affordable rentals and should attract quality
tenants.
When seeking to rent your property you should employ a licensed real
estate agent. The choice of agent is of course a critical decision.
The agent should be familiar with the location, the type of tenants
seeking to rent in the area and most importantly, the agent must be
familiar with the workings of the property.
For these reasons, Central Equity has formed a licensed real estate
arm, its sister company, Melbourne Inner City Management.
Melbourne Inner City Management was established specifically to look
after Central Equity properties, to provide expert advice and service
to Central Equity clients - to provide a "one-stop-shop".
Melbourne Inner City Management attends to the body corporate management,
letting and rentals as well as the resale of Central Equity properties.
As the company only attends to Central Equity properties, it forms
part of the team at the initial design stage and observes construction
of the project. It then undertakes a leasing campaign to introduce
the property to the market, achieving the most appropriate rental
level, a good quality tenant within the shortest possible time.
This one stop service of buying a property, having it managed by the
same group, has proven to be very successful and many Central Equity
clients have taken advantage of this expert and exclusive service.
Here are a number of questions which should be asked by all landlords.
How does the body corporate operate?
A body corporate regulates the operations of a development. It arranges
cleaning, maintenance (for common areas) and insurance on behalf of
the owners.
The owners meet annually with the body corporate manager to discuss
budgetary measures, including fees. In practice, the body corporate
manager is responsible for ensuring the running of the body corporate
in the interests of all owners and represent them at such meetings.Usually
a committee is nominated to deal with any items between meetings.
How are tenants selected?
Melbourne Inner City Management carries out extensive advertising.
All applicants are carefully screened, personally interviewed and
references checked. Suitable tenants are recommended for owners¹ approval.
What is the term of the lease?
The standard lease term is one year. Most tenants renew their lease
for another 2 or 3 years.
What are the outgoings?
The owners are responsible for payment of local government charges,
such as council rates, water rates (excluding water consumption, if
separately metered), body corporate and management fees. Tenants are
responsible for electricity, gas and phone.
Is insurance necessary?
If your property is in a complex with a body corporate, property insurance
and public liability is taken out by the body corporate. As an owner
you should take out insurance for internal carpets, blinds and light
fittings, including personal effects. Melbourne Inner City Management
will arrange a landlord¹s insurance providing cover for these items
at special economical rates.
Insurances can be paid on your behalf by the manager from rentals
received.
Property Upkeep
Upon occupancy by a tenant, a "condition report" is completed detailing
the condition of the property.
The tenant must return the premises to a similar condition at the
end of the lease and must pay for any damage caused. A security deposit
is held throughout the term of the lease which is returned upon a
satisfactory inspection by the body corporate manager.
A six monthly inspection of the property is undertaken to check on
its maintenance.
Melbourne Inner City Management operates a fully computerised property
management system and employs experienced staff with specialised skills
for the tasks required.
Central Equity is the only developer who looks after your property
on a "one stop shop" basis. Upon completion of construction, Melbourne
Inner City Management is available to manage your property. This makes
for a smooth transition - someone is available to solve any concerns.
This is definitely gives peace of mind for investors of Central Equity
apartments.
Click
here
for the archive of Central Equity editorials
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4/11/00
28/10/00
13/10/00
13/10/00
6/10/00
7/07/00
23/06/00
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 for other articles please visit our archive.
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About
Central Equity