Case Study – Renovations for Profit

BEFORE-AFTER RENOVATIONS - INFINITY PROPERTY AGENTSOver the past 4 years, Infinity Property Agents have managed a two bedroom apartment in Virginia Street, Rosehill. The average price of a two bedroom apartment in Rosehill was $425,000 (see list below).

The property was generating a rental income of $350 per week, with an estimated sale value of $390,000 to $400,000 in its current condition. The owner advised that they wanted to sell the property “as is” without any renovations.

The Director of Infinity Property Agents, Michael Kurosawa advised the client that the best option to achieve a premium sales result was for the property to be vacated, renovated and sold. We estimated that we could achieve a sale price of $500,000 based on a $30,000 renovation spend.

Renovation to Sale Service:
A common error for property owners is to overspent on renovations. Having Infinity Property manage the renovations resulted in total renovation costs of $30,500. We made changes to the kitchen and bathroom. The property was painted and new carpets and blinds were installed. The property was listed for Auction and within three weeks the owner accepted a pre-auction offer of $510,000. Although the new owner wishes to live in the renovated home, a new rental value has been estimated at $420 per week.

Good advice and selected renovations carried out by Infinity Property Agents resulted in a net benefit to the owner of an additional $80,000. Not only did we come in on budget for the renovations, but we also achieved above our best sales estimate.

SALE: $510,000 – August 2015
http://www.infinityproperty.com.au/selling/NSW/Parramatta/Rosehill/Apartment/1P1918

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Agents Results:

13/77 Virginia Street Rosehill NSW 2142
http://www.realestate.com.au/property-house-nsw-rosehill-116495035
Sold for $425,000 in April 2014

2/44 Virginia Street, Rosehill NSW 2142
http://www.domain.com.au/property-profile/2-44-virginia-street-rosehill-nsw-2142
Sold for $425,000 in February 2015

To find out how we can achieve a similar result for your property, contact Michael Kurosawa on 0411 641 662 or our sales team on 9699 9179.

Author: Bernie Tynes

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A Real Estate Guide to The Bachelor 2015

The Bachelor 2015 hit the soundwaves (thanks Sandra) last night. “Bachelor 3.0” or as we at Infinity Property Agents can all collectively call him “Woodie” or for the select few minion lovers “Samantha” is being played by 34 year old Sam Wood, a true blue Tasmanian “Dude aka hipster” living in Melbourne.

The Bachelor Australia 2015

Clifton Mansion – Home to The Bachelor 2015

The Third season of the Bachelor will once again see the spotlight turned to the magnificent 120+ year old Clifton mansion at #7 Woolwich Road, Hunters Hill for the second time. Not that the local residents are all too pleased about the string of black limo’s and film crews turning up each day.

The romantic setting of this sandstone residence in which the 19 contestants vie for the attention of Sam Wood is reportedly rented out to the network for $25,000 per week. Situated along a 5100 metre frontage of the Parramatta River the home also shares National trust heritage status. Owned by gynaecologist and obstetrician Dr Simon McCaffrey and his wife Felicity, the home was built back in the 1890’s by former Stock Exchange Chairman John Ryder Jones and previous owners include the Grace Bros Retail family. The home features a swimming pool, tennis court, boathouse, arts studio and basement garage for 10 cars.

This stunning residence offers plenty of room for “Woodie” and his mate Osher Gü (we prefer “Andrew G” but each to their own) to romp around in their Sunday best whilst enjoying the company of the highly offensive school teacher Sandra, the Anal gland loving vet Laura or his white rose choice Heather and the 16, make that 14 other female companions.

bach1

Regardless of your choice, we’ll keep you up to date with the latest romps at Clifton Mansion and it’s provincial décor.

Hunters Hill
House price medium: $1,950,000 – $2,300,000 for 4 bedroom
Average rent (4 bedroom): $1,350 pw
19.9% are older couples and families

Author: Bernie Tynes

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NSW Business Chamber Awards 2015

Michael Kurosawa, Infinity Property Agents - City of Sydney Business Awards Nominees 2015

Michael Kurosawa, Infinity Property Agents – City of Sydney Business Awards Nominees 2015

It’s nice to be recognized and particularly when you’re in an industry that is as competitive as the real estate industry. This year, Infinity Property Agents  was nominated as a finalist in two categories – Business Leader (Michael Kurosawa) and Excellence in Small Business.Winners will be announced on Thursday, 23rd July at the Sydney Town Hall.

  1. Excellence in Small BusinessThe Award recognises:
  • Business growth over the past 24 months
  • Strategies and plans to achieve business growth
  • How these strategies were implemented
  • Measurable results – both financial and non-financial

The awards focused on our property management division which has witnessed 74% increase in the number of new properties under our management and revenue increase of around 43% over the past 24 months.

The organisation developed a strategic marketing plan which focused on creating new business whilst developing stronger relationships with our existing client base. Our marketing efforts targeted specific regions and developments within those regions. We analysed the business practices of our competitors to benchmark a premium service offering to our customers and researched our client base to determine the level of satisfaction from both landlord and tenant perspectives, acknowledging and addressing areas of weakness.

In addition to traditional marketing efforts, a stronger focus was placed on digital marketing with in-house development of weekly e-newsletters, seo, online reviews, company blogs, ad-words campaigns, extensive social media focus and digital formats of presentation kits.

 

  1. Business LeaderThe Award recognises:
  • Scope of responsibilities
  • Achievements over the past five years
  • Key challenges faced and how these were overcome
  • Community focus

The owner of Infinity Property Agents, Michael Kurosawa came from humble beginnings as a Japanese immigrant 28 years ago. Having worked for some of Australia’s best known estate agencies, he currently leads a team of 13 staff and manages 550 properties valued at in excess of $3.7 billion, assisting 480 investors to develop their property portfolio.

Five year goals focus on expansion to at least 1,000 properties under management, new, larger office location, and double the staff structure, expansion of our cleaning services, sales and commercial divisions and potentially branching out to regional areas. The company is also focused on its community offering, assisting Sydney community groups and the Sydney Children’s Hospital Foundation along with closer ties with our South East Asian communities.

As an independent agency, the key challenges faced are that you don’t have the support of a larger network and franchised brand. This requires you to work harder, building stronger relationships with your existing client base and provide a higher level of service, exceeding benchmarks of that of the larger agencies. You also need a team of staff that share the central goal and vision for excellence in customer service. Staff are provided with regular training, specific KPI’s and frequent rewards.

As a business leader, Michael is also a member of the Malaysian-Singapore Association which builds business networks between Australian and South East Asia, providing regular talks on the Sydney property market and educating members on investment opportunities.

 

July 2015
Michael Kurosawa – Managing Director
0411 641 662

@nswbc @cityofsydney @realestate_ipa

Author: Bernie Tynes

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When is the best time to sell my property?

497297531_640It’s no secret that the property market in Sydney is piping hot right now. With auction clearance rates sitting above 80%, the chances of selling your property are extremely high.

Understanding what’s fuelling this growth:

This week we learnt that the RBA have decided to leave the cash rate on hold at 2% due to a weaker currency, declining commodities and bouyant property sector. The property market will be monitored closely before any further decisions are made at the August RBA meeting.

Lower interest rates, combined with less available stock and large consumer buying demand has resulted in a boom period for property owners. With unemployment falling to 6%, improvements in retail spending and caution over the European markets, interest rates should remain on hold in the short term.

So when do you sell your property?

1.       Economic Drivers – Demand Vs Supply: One theory is to strike while the iron is hot. The demand is here now so sell into the demand. It makes perfect sense to capitalise on a booming property market. As soon as interest rates start to creep up again, the demand will fall and potentially the opportunity to capitalise. Low rates can also assist you to buy your next property, so there’s a good reason why economic drivers is number one on our list!

2.       Seasonal Trends: Autumn and Spring periods stimulate both buyers and sellers, so the results are quite tempered. The general mood in the post winter months is buoyant, gardens bloom, look manicured and people tend to “Spring Clean” their properties.  Most people will generally research the market in the summer months and prepare the property for an Autumn sale. The summer holiday periods also mean less properties on the market and subsequently interest is focused on fewer properties.

3.       Lifestyle Changes: Often personal circumstances are a major influence in when to sell. Births, Death, Marriages, Divorce, relocations, downsizing all influence the timing of selling your home.

4.       Locational Factors: If you home is located near parks, rivers, beach, resorts, school, you should consider the attraction of the area. Clearly the beach plays into spring and summer months whilst the school year aligns with the school terms.

To start planning the right time to sell your property, it’s helpful to speak to an experienced real estate agent who knows your local market well and Infinity Property Agents is the perfect choice to consider in Sydney.

We offer free no obligation appraisals of your property and can advise you on the best time to sell your property. Call Michael Kurosawa on 9699 9179.

Author: Bernie Tynes

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Professional Property Management Vs Self-Management

property-manager-stressIf you’ve recently purchased a property for investment purposes or you’re looking to buy a property, one of the issues you might consider is “Do I need a property manager or can I manage the property myself?”

The role of the Property Manager is to lease and manage residential, commercial, industrial and retail property on behalf of the Landlord. Yet the actual activities within the role are rarely understood. Generally speaking, it is assumed that a property manager will simply find a tenant and collect the rent, take their fee and provide the remainder to the Landlord. The reality is that the role is far more complex that this basic principle.  So, let’s break down the primary functions of the Property Manager, examine why it’s better to have an agent manage your property and the general costs associated with professional property management.

KEY ROLES OF THE PROPERTY MANAGER

The property manager’s duties include:

· Selecting tenants – There is a bit of a science here. Firstly, at least for Infinity Property Agents we subscribe to a system that allows us to look up the previous history of a prospective tenant. We also call personal references, discuss the tenant’s circumstances (family, pets, job) with the prospective tenant, speak with previous estate agents who have a rental history of the tenant and develop a proposal for the property owner who has the ultimate say.

· Collecting rent – it’s not just a matter of collecting the rent. We are also required to manage the arrears, prepare monthly statements of rental income and issue financial year statements for tax purposes. However, this is a key element. We need to ensure the correct rent is paid and it’s paid on time in advance.

· Maintenance – Having a preventative maintenance program for your property plays an integral part of your asset appreciation and ultimately saves you money. It also results in happier tenants who are more willing to treat your property as their own and this in turn results in lower vacancy rates and increased rental income upon lease renewal. An additional benefit of professional property management is the associations we have with our trade suppliers. They provide a more cost effective method of managing your maintenance and due to their loyalty to us, they provide a better, faster service with ongoing support and as an indirect result, limited tenant interruption. It’s important to also look after and respect your tenants.

· Marketing the property – Many assume that an ad on Gumtree will do the job. The reality is you want to find the right tenant at the right price and to do this you need to know where to advertise and for the best possible cost. Infinity Property Agents pays a sizeable monthly subscription to Australia’s top 6 property portals and currently your total advertising cost is limited to only $88. If you can get the same coverage cheaper yourself, let us know how you did it! We also market your property every Friday to a database of 3,700 prospective tenants and executive relocation agents for the Saturday Home Open.

– Home Open – In addition to marketing your property, we also speak, email and text prospective tenants to encourage them to attend the home open. We host the home open throughout the week and on the weekend and follow up with potential tenants and manage the screening process and completion of the Tenancy Agreement. We also report back to the property owner the results of the Home Open. That in itself is a major component of the rental process.

· Negotiating leases, bond and rent reviews – getting the right tenant is only one element of the mix. You also need to know how to negotiate the best rental income, at the right market rate for the appropriate period of time. You don’t want your lease to expire at the wrong time of the year, such as Christmas, which could result in a longer than normal vacancy periods. Infinity Property Agents will also ensure that your property remains under lease at all times whereas a number of other agencies will run an expired lease on a month to month basis. This jeopardises your financial position as your bank will require your mortgage payment regardless of whether your property is vacant or leased. We also review your property rent according to the market every five (5) months which even at industry standards is well above the average period. We also lodge the tenants bond with the Fair Trading Rental Bond Board, an independent authority that ensures the tenants bond is protected by a third party.

· Property Inspections – So, you’ve found a tenant. How do you know they’ll treat your property as you would expect? At Infinity Property Agents we visit our tenants once every five (5) months to inspect the property and review any maintenance issues with the tenant. It provides an ideal opportunity to take photos and produce a photographic inspection report which we pass on to our Landlords. It also limits maintenance costs on issues that have resulted over the period. We do this free of charge as a valued service to our customers.

· Financial Statements – At Infinity Property Agents, we employ a qualified, certified and registered CPA to manage your properties financial affairs, Landlord Insurance, costs of management, maintenance costs, reporting and distribution of your monthly and annual statements etc… We also provide 24/7 online access to your account statements.

· Manage strata related issues – for those that own a property under strata governance, the role of the Property Manager is to liaise with the Strata to ensure the property common and any specific Landlord unit interests are being managed appropriately. In some instances, Infinity Property Agents will attend strata meetings; deal with master key and fob management and levies (including special levies).

· Represent owners at Tribunal – Every now and again, things don’t always go to plan. Tenants cause damage, fail to pay rent on time (although we manage a tight rental arrears schedule). You simply can’t get it right 100% of the time. When issues relating to the Tenancy Agreement require tribunal intervention, the role of the property agent is to raise the issue with the tenant and the tribunal, set a hearing date, represent the landlord and provide the relevant documentation to support our case. This may result in termination of the lease or changes to the Tenancy Agreement or payment for damage and access the bond to make good the owners position. It literally is a case of treating your property as if we owned it ourselves.

Let’s now look at the costs associated with professional Property Management. In most cases, Property Managers will have their own fee schedule. This generally includes:

– A weekly “Management Fee” based on rent.
– A “Letting Fee” which is essentially the cost of a week’s rent – some agents will charge you more
– An “Advertising Fee” – a contribution to the cost of marketing your property. Some Agents charge a substantial fee for this service. You really need to balance the cost against the reach you receive. Doing it yourself can be very costly!
– “Lease Renewal Fee” – only applies upon renewal of a lease
–  “Administration Fee” – a cost associate with the paperwork, mailing, photocopying, monthly statements, 24/7 online access

You can always call Infinity Property Agents on 9699 9179 to discuss the fee structure. We try to accommodate owners based on their circumstances and the number of properties they own.

Hopefully, if you have read through most of this article, you’ll now appreciate just a little more about why it’s better to have a professional estate agency manage your investment property. There are also tax benefits associated with the cost of management but best to talk to your Accountant in regards to this issue, as everyone’s circumstances are different.

Finally there are stress and time benefits. You simply have more time to focus on what YOU do best and you don’t have to deal with the stress associated with management issues.

If you are based in Sydney and you require a premium property management service at an affordable rate, call us on 9699 9179. We’d love to assist you with the management of your property.

Author: Bernie Tynes

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