The Queensland Government has announced rental reforms which have caused some consternation within the industry.
That is primarily because some of the proposed changes include:

• Owners no longer being able to end a tenancy without a valid reason;
• Requiring an owner to have reasonable grounds for refusing a tenant’s request to keep a pet;
• Establishing a list of proposed minor modifications that would not need approval from the property owner or would allow fast-tracked approval.

Now, when written like that, these reforms do seem somewhat in a tenant’s favour rather than a landlord.
However, our rental population is growing so there is a need to regulate the sector.
At the end of the day, more renters are good news for investors.
Over recent times, there have been similar rental forms in Victoria and New South Wales, which have proved to be mostly benign once they’ve been implemented.
In practice, these reforms haven’t caused much of a dilemma for landlords, because most investors, for example, are focused on having long-term tenants that look after their properties.
With any changes to residential tenancy legislation, the two most important aspects when it comes to managing leases are tenant and property manager selection.
If you get that right, you will have no problem with current or proposed tenancy regulations.
Good tenants rarely cause problems, which means landlords are keen for them to stay.
Good property managers will also do their job by selecting the best tenant for your property, as well as keeping a close eye on your investment to prevent any major issues arising.
More information needed
However, the industry campaign about the Queensland rental reforms is necessary, in my opinion.
That’s because the government hasn’t released enough information to explain how some of the reforms would work in practice, as well as how they would protect the fundamental ownership rights of landlords.
There are always pros and cons to such proposals if we consider that the government has already said that the reforms are likely to increase rents by about 10 per cent.
That is a negative for tenants but a positive for landlords, especially in Queensland, where rents have been a bit soft for a while now.
A tenant’s right to have a pet will also positively impact the rent that can be charged, but landlord insurers may decide to increase premiums.
That said, I know that a human being is much more likely to cause significant damage than a pet!
One reform that is not on the table, thankfully, is where the minimum lease term is 12 months, as it is in South Australia.
That policy is terrible in my opinion because an investor must retain the right to instigate a probational period of sorts for tenants who might not work out for a variety of reasons.
So, we definitely need to look at both sides of the coin.
Without question, I support the industry campaign, because we need more clarity on some of the proposed reforms.
As a property investor with multiple properties, though, I don’t believe these reforms are anything to fear.
Rather, once the government has consulted with the industry, the combined discussions will eventually help to create legislation that will support the property investment sector in the years ahead.

Its true that people are finding it harder to buy their first home. It is also true that those who have a mortgage are paying way more on interest by doing it the traditional way.

With the changes in the lending sector, it has been harder for everyone to buy property,  not only only for first time buyers. but for investors as well  For investors though, it is a seen more as a hurdle along their way which they can overcome by analysing their portfolio and moving on though at a slower pace.

For first time buyer, it feels like to giving up hope before even starting as buying your home is becoming more and more unreachable. Well it is time to change the way to look at things. Why should your first property be your home? 

First home buyers can build a portfolio first and then buy their home when they have greater equity and cashflow from the portfolio to support that purchase  A well built and properly managed  portfolio allows you to buy the house of your your dreams.... just like I did. In my case though I already had bought my first home before I started investing back in 1998. Even though back then I could afford to borrow more,  I did however choose a house in the lower price bracket knowing that it would be a place to live in temporarily. This allowed me to start investing as I still had the borrowing capacity to do so.  Given that in today’s market house prices are way above peoples affordability. There are houses in the lower price range which most first time home buyers don’t consider since they want something "better" for themselves to live in and ....right now.

Purchasing a home will get even harder and this is where we have to start thinking outside the square. What if you built your portfolio first and then bought the home you desire? By building a portfolio using the lower priced yet good houses you are allowing yourself a better chance of getting the home that you want to live in and not finding yourself out of market again.
Not only that, building a portfolio correctly also allows you to pay off your home sooner and also save on the extra interest you would have paid if taken the conventional route.

Today’s market is tough, with smart thinking, people can become creative and still be in control of their finances.  With proper planning and using the right strategies a lot can be acheived.  
This is where you can have your cake and eat it too. Should you wish to discuss your scenario, feel free to drop me a line.
Reshmi Kumar

​If I were to describe the types of investors I have seen over the years, it would be something like describing a scale with two extremes.  There are some investors staying within their comfort zone and not taking any chances, on the other hand some constantly on the hunt and jumping into any opportunity without thinking too much about the consequences.  Being either too risky or too conservative.
Both these behaviours are based  on fear, one has the fear of the unknown whilst the other, the fear of missing out.  None of these types of investors are allowing their portfolio to growth to its full potential.
The most successful investor however is the person who can balance themselves between these two extremes.  They are then able to maintain a measured and a much more balanced approach to investing and give themselves the best opportunity to grow their portfolio.
The only way you can achieve that is by having a wealth of knowledge and experience behind you.  You can gain knowledge by reading book, attending seminars, listening to podcast etc but how do you gain the experience.  This is something you get by networking and using experts.
These are some of the habits of a successful investor.  

They start with the right foundation
They have a clear defined goal. They ensure their financial foundation is sound. They diversify their portfolio using a mixture of strategies in a wide range of locations. Successful investors allow for a buffer of emergency funds during the investing journey knowing that the buffer will still be there when they purchase the next property.  Successful investors define long-term goals and ensure their path will allow plenty of buffers so that their first and second investments set them up for the future

They understand the importance of experts.
They create a safe baseline portfolio before getting into the more dynamic stuff. Before getting into a new location, they spend the time in doing the groundwork and they do dry runs to see if it will be a sound investment. They learn from others who’ve blazed the path before them. Often, that means relying on talented professionals in their field of expertise.

They understand the importance of being liquid.
Being liquid allows you to manage risk better. Being liquid allows you to take advantage of any new opportunities without risking everything. It means you can transition smoothly into new markets because you have the security of buffers. 

They understand the importance of diversification
Diversification is a risk minimisation tool.  Diversify the types of properties, the financial institutions, the strategies.  Know the fundamentals so you know when to move in and out of a market.  

Staying abreast with industry/market knowledge.
Tracking the number of construction approvals, keeping an eye on yields, looking out for auction clearance rates and staying abreast of finance movements.
Watching these fundamental metrics on markets of interest will tell you when it’s time to switch your attention from one to the other.  Avoid leap-frogging too quickly into the unknown.
It’s important to gain knowledge gradually – becoming an increasingly sophisticated investor in a measured and organic way rather than rushing ahead just like I did.  Buying the wrong types of properties in my early years of investing set me back quite a few years.
For example, I would not recommend taking on a small development project or a subdivision as your first purchase – regardless of how good it looks. Instead, start with a home or unit and perhaps move into a small renovation or extension after that. Build some experience first.
When you do make it to the small development stage, try an easy project such as a land split before you take on a construction deal.
Successful investor stays between the flags of good sense.
 
If you’re looking for help to become more successful while being flexible, we’re here to assist.

Celebrating International Womens Day at Blairmount Homestead

What a great turn out.  Its nice to see a switched on group of people.  Lots of great questions and thank you all for the feedback.....it was awesome.
Investing in property is a simple process.  Now you know why so many of our clients are achieving their financial goals.  They simply follow the steps we suggest.  It wasn't easy for us when we first started investing and now with our help, its just focused and simple that anyone could this this if they put their mind to it.

Make sure you are there for the follow on from this for part 2 on the 20th of November