Talking Apartments

Airbnb is the biggest thing to happen to accomodation around the world. And not just hotel accomodation (although that is a massive part of it) all accomodation including the long term rental market both directly and indirectly.

There are some great stories and some hate stories from lots of perspectives. These range from people making easy cash, to cheap and great travel experiences, to tragic stories of homes being trashed and innocent next door neighbours who just what the simple quiet life.

Outside the US Australia has the biggest short stay market in the world. We know Australia follows the US in many things so if you want to know what is going to happen here over the next few years just take a peak over the pond and see what is happening in the US.

Andrew Keene lives in USA and while his day job trades the stock market -Alpha Shark Trading - he has invested in property for the sole purpose to cash in on the burgeoning airbnb market. He has studied it in intimate detail, experienced it first hand, learnt what works and what doesn't and how to work the system to maximise his return. He knows so much about it he has written a book - The Airbnb Profit Blueprint which tells you how to make money with airbnb, increase your ranking, and reduce the amount of time you spend working on your listing.

Andrew explains how airbnb is not for everyone, nor every property, but if you can bring all the pieces together there is definitely money to be made.

Join me with Andrew Keene to chat about airbnb US style.

If you love a good road trip then strap in for a Quick Lap of the Australian Apartment Market with JLL's Head of Residential Research - Leigh Warner.

Leigh and I stop off at the 5 mainland state capitals to dissect his recent research papers which he has kindly shared here as follows...

Brisbane Apartment Market

Sydney Apartment Market

Melbourne Apartment Market

Adelaide Apartment Market

Perth Apartment Market

We discuss the local economics, supply, demand, pricing and rental markets to posture a view on where each market is at.

It's a roller coaster ride with most markets experiencing a degree of cooling with Brisbane looking like the place to buy after suffering recent falls.

We start off with some national and general issues then start in the sunshine state before turning right at Melbourne and then crossing the Nullarbor.

You can jump to the market of interest here.

9:40 Brisbane market

14:20 Sydney market

16:48 Melbourne market

21:57 Adelaide market

24:02 Perth market

When it comes to sorting out the tax issues for investment property we are all pretty good and capturing the main components, That is the income of rent less all the costs like rates, insurance, owners corp fees, agents service fees, and interest on the loan. But there are non cash items that are also deductible from your taxable income which can keep dollars in your pocket which is a whole lot better than paying it to the ATO.

Here are three quick trigger questions to decided if you should get a depreciation schedule prepared.

The main one is depreciation which is the notional allowance for the deterioration in monetary value of the buildings and all the associated fixtures, fittings, plant and equipment. Their are rules about how much money you can claim for each component of the property and a quantity surveyor can work out exactly how much you can reduce from your tax bill. They prepare for you a depreciation schedule which tells you (actually your accountant) how much you can claim each year for many years to come. So you really only need to get it done once and then unless you do a major reno you are all set.

Mike Mortlock is the Managing Director of MCG Quality Surveyors. Mike and his team know all the little nooks and crannys where deductions hide and specialise in preparing depreciation schedules for investment apartments. It is tax time so I was very grateful for Mike's time during the busiest time of the year for him.

Contact Mike and his team directly

MCG Quantity Surveyors

Phone 1300 795 170

Email [email protected]

www.mcgqs.com.au

I dropped in recently to the marketing launch of Linden House at 33 Park St South Melbourne and had a glass of bubbles while checking out the marketing suite.

It is sometimes hard to find a small or boutique apartment building especially close to the city and with great natural light. This new project is so close to Melbournes Bontanic Gardens and the Domain Interchange on St Kilda Road which when completed will provide a amazing transport hub.

Buying an apartment off the plan can be a tricky process and there is lots of things to look out for and questions to ask. (See earlier blog here)

Linden House has only 33 apartments and on the upper floors there is only 2 apartment per floor which is nice and exclusive. Or you can buy the Penthouse for $2.7 million.

The Linden House web site gives you more detail and let me know if you would like to buy one and we can help you out. Just email me - [email protected]

Cheers...