Come to the dog side
The key to making money is spotting a gap in the market. And there’s a large pet-shaped hole in Australia’s rental market.
More than 60 per cent of Australian households have a pet these days, yet it’s reported only about 10 per cent of rental properties allow them.
It’s become more of an issue recently, with lockdowns highlighting the important emotional support role pets play. In the past two years, several Australian States have introduced new pet-friendly rental laws restricting the ability of landlords to exclude tenants with fur babies.
But financially, it’s not a smart move to lock out the pet market either, because surveys have shown people who keep pets:
- Earn more money, on average, than those without.
- Are willing to pay 7-14 per cent more than standard renters.
- Often lock in longer leases, so can make more stable, responsible tenants.
To maximise rental yields, landlords should think about not just accepting pets, but actively chasing the fur dollar by making sure their property has a bit of animal magnetism.
Choose wisely
If you’re thinking about buying an investment property but haven’t taken the plunge, consider outdoor space and access to dog parks. These will make your home more attractive and valuable to the pet market.
Pull the rug out from under them
Carpeting is not easy to maintain in any rental property, but particularly one with pets.
Laminate ticks plenty of boxes as an alternative. It’s inexpensive, but can be stylish. It is also hard-wearing, easy to clean and non-porous, so it’s not going to let any accidental spills seep down to the floorboards.
Show them the door
Installing a dog or cat flap can help seal the deal for pet lovers and may help limit potential damage from animals scratching at doors to be let in or out. An outlay of a few hundred dollars can add the wow factor of a smart pet door. These pair with a collar-worn sensor to lock and unlock the door flap as pets approach.
Fence it
A secure, fully fenced garden is a huge selling point for people with pets (and toddlers).
While you’re at it, it may also be worthwhile checking your yard for common plants that may be toxic to animals. Many types of lilies, the popular purple and white flowering tree yesterday, today and tomorrow (Brunfelsia pauciflora) and agave can all cause illness if ingested.
Be open to suggestions
Let your tenants know you are open to them installing pet-friendly additions, provided they get permission. Done correctly, these may add value for future tenants.
Target the market
There are specific websites for pet-friendly rentals. Ensure you advertise on these to maximise your market and rental income potential.
Keep it simple
Supplying useful equipment can make a big difference, particularly to maintaining your property. If you have a lawn you’d like looked after, make it simple by providing scoopers and even a doggy compost system. There are several types of compost bins designed specifically to break down pet poo. Here’s a fun fact – in the US pet droppings in common outdoor areas of rental properties are such an issue that companies (including one called PooPrints) actually make money linking stray poos to pets via DNA analysis. The system is used to police large apartment complexes, where all pets must submit to a cheek swab for reference when they move in.
Cover your assets
Lastly, check whether your landlord’s insurance covers you for any damage caused by pets. With more States passing pet-friendly rental laws, coverage for pet-related incidents is being offered as standard on some policies. Do your homework to make sure you don’t end up holding the doggy bag. Thinking of investing? Call to run through a range of options for getting into the rental market.
What’s the state of the State’s rental laws?
ACT: In 2019 pet-friendly tenancy laws were enacted, which meant landlords could not refuse tenants the right to keep pets unless they applied to a State tribunal and demonstrated reasonable grounds, such as undue risk of injury or damage.
Victoria: In March 2020 new laws came into effect allowing tenants to keep pets, unless the Victorian Civil and Administrative Tribunal upholds that the landlord has reasonable grounds for prohibiting them.
NT: In January this year the Territory adopted a similar system to Victoria and the ACT, with landlords needing to argue their case before a State tribunal to refuse tenants the right to keep a pet.
NSW: In August 2021 the Government moved to prevent blanket bans on pets in apartment buildings. Instead, there are limited grounds – such as damage to common property, menacing behaviour, persistent noise and odour – under which an individual apartment owner may be prevented from keeping pets. However, renters in both apartments and houses still face the obstacle of landlords. While existing laws don’t prevent pets, or require tenants to ask permission to keep them, landlords can, and often do, include a no-pets clause in lease agreements.
Queensland: State Parliament this month passed amendments that require landlords to give “reasonable grounds” for refusing to allow a tenant to keep a pet. Landlords would be able to impose reasonable conditions on pet leases, including that a pet be kept outside and the property fumigated and carpets cleaned at the end of tenancy.
WA: Landlords can refuse pets without a reason. WA is the only State with a pet bond of $260 to cover fumigation costs.
SA: Tenants must ask permission and landlords can refuse pets without giving a reason.
Green Loans – kind to the planet and your wallet
Eco-friendly and budget-friendly are phrases that are rarely used together when it comes to real estate.
But that’s changing fast with an enormous push to bring green homes to the masses.
Cheaper technology and building designs are delivering affordable eco homes that can slash and even eliminate power bills. Some solar-powered properties are actually earning their owners thousands selling electricity back to the grid.
Weigh that against those of us who’ve spent a fortune to warm and cool our houses while working from home, and you can see why energy efficiency is shaping up as one of the must-haves for new properties.
And now finance – the final piece of the puzzle – is falling into place, with the launch of discounted rate green home loans to reward buyers who buy, build or renovate to prioritise sustainability.
What is a green home loan?
It’s finance that aims to encourage borrowers to build or buy environmentally-friendly homes, usually through discounted interest rates. There are cashback offers available too for refinancing a limited range of eligible properties – contact me for details.
Green loans can also be used to retrofit existing homes with more energy efficient upgrades such as better insulation, solar panels, double-glazing or a battery to store solar power.
To qualify for green finance, houses must meet specific eco-friendly benchmarks – generally at least 7 stars out of a possible 10 on the Nationwide House Energy Rating Scheme (NatHERS). The scheme ranks the thermal performance of properties, with the maximum score of 10 stars indicating a house will not require any heating or cooling to maintain a comfortable indoor temperature year-round. Most States require new homes to reach a minimum 6-star rating, which is fair but not outstanding.
As a guide, one study by Sustainability Victoria found houses built before 1990 averaged only 1.6 stars, while those constructed from 1990-2005 were 3.1.
Why offer incentives?
The property sector accounts for about 23 per cent of Australia’s greenhouse gas emissions, according to the Australian Sustainable Built Environment Council (ASBEC). And about half of those emissions come from residential properties, mainly through electricity used for heating, cooling and powering hot water systems.
Australia’s Clean Energy Finance Corporation (CEFC) has provided funding for the lending and construction industry to encourage investment in more energy efficient housing. Developers around the country are getting on board, offering high-spec sustainable house-and-land packages at comparable prices to standard builds.
How do the costs of an eco-home stack up?
Apart from feeling good about doing your part, sustainable homes can now offer price advantages in three areas:
- Lower mortgage rates: Discounted interest rates – some limited to an initial five-year period – can shave a significant amount from monthly repayments.
- Lower running costs: In the past 18 months many of us have spent a lot of time at home and gained a pretty good idea of just how thermally efficient (or inefficient!) our homes are. A study led by Curtin University1 found average savings on electricity bills of around $1,750 a year for families in energy-efficient housing.
- Higher and faster resale: We all look at star ratings before buying appliances. Homes should be no different. High star-rated homes can fetch a 10 per cent premium and sell about two weeks faster than standard homes, according to a 2018 study by PRDNationwide.
The real equation is how do the additional costs associated with building sustainably compare to the savings? Again, according to research from Curtin Uni, a net zero home – one that produces more electricity than it uses – only need cost $20,000 (or 6-11 per cent) more than a standard comparable home. It’s a price difference researchers estimated annual energy savings should claw back within ten years.
Want to find out how going green could stack up for you? Get in touch to discuss the range of green loans on the market.
CASE STUDY
Retired Brisbane mathematician David says the stars aligned when, within the space of a few weeks last year, he heard about new green loans, saw his dream block of land up for sale and inherited some money.
It all came to fruition in April this year when he moved into his newly-completed, 8.7 star-rated energy efficient home in the Brisbane suburb of Sherwood, where he is living the green dream. Not only has David not had a power bill since he moved in, but he has also been earning about $200 a month selling electricity back into the grid from an enormous 20 kW rooftop solar system.
“It’s a lovely house and it’s performing very well,” David says of the net-zero three-bedroom home. “I went through all of winter and I didn’t use any heating.” And last month, when Brisbane had a record-breaking 36.6-degree day, he didn’t even turn on a fan, with his house remaining a warm but comfortable 26 degrees.
A life-long environmentalist, David says he was motivated by sustainability rather than savings when he approached several banks last year looking for a discounted green loan to construct an architect-designed eco-house. Although he considers his build expensive at well over $600,000, this could have been substantially reduced by using generic design plans and reducing some technology specs, he says.
“I hope a lot of people read this and think, hey that would suit me, because the more people that build energy efficient houses, the less we’ll need to make electricity and the more we can make it on our own roofs,” he says.
David’s tip: Do your research on green loan criteria before purchasing land, as he had eligibility issues with one bank over the block he had already purchased.
Go guilt free this christmas
We’ve had sober October, now try low-spender November. It may not seem like it, but the lead in to Christmas is the perfect time for a financial detox. Not only will it stop you losing control of festive spending, it’ll set you up to start the new year on the right track.
Rein in your streaming
There’s only so much time in the day. And now lockdown threats are easing, it’s time to prune those streaming services. Cutting just one can save hundreds a year. Set aside five minutes to go to the App Store or Play Store and rationalise your subscriptions.
Many mobile carriers offer free or discounted access to streaming platforms, so consider using your phone plan to offset your streaming. You might also be surprised what free-to-air channels like SBS and ABC have on offer on their platforms.
A Canstar Blue survey conducted this year found Aussies spend an average of $42 a month on streaming, with 28 per cent admitting they share login details with friends to save money.
Try a two-week spending cleanse
No kale involved. Just an iron will. Cut all non-essential spending to kick start your detox.
And be ruthless about what is essential. It will highlight just how much cash is leaking to discretionary spending on coffee, clothes, magazines, take-away and transport.
Before you start, stock up on essential groceries and fill your tank. That way you’re stocked up on snacks and have fewer reasons to duck to the shop for emergency supplies. If you can, extend it to four weeks and direct your savings to pay off Christmas gifts – they’re essential, right?
Sic a tracker on yourself
The boom in tap-and-go, along with automated payment systems, has made it hard to keep track of where your money is going. And that’s exactly how it’s been designed. Try Googling “pain of paying” to understand how going cashless has tricked us into thinking we’re not really paying at all.
Be aware of psychological spending traps and wise up with a money tracker. These popular apps link to your bank and online payment systems to categorise all your spending – even automated subscriptions – under headings such as entertainment, food and clothing. It’s an easy way to keep an oversight of your outgoings.
Organise Christmas online
Christmas is expensive – there’s no way around it. But it doesn’t need to feel overwhelming or out of control. Panic buying and impulse purchases are the natural enemies of festive financial plans, so make a strict list and a budget for your gift buying.
Don’t go to a shopping centre without a clear idea of what you need – there’s too much temptation. Research and/or shop online, so you can look for only what you want at the best prices.
Don’t click on temptation
When scrolling through social media, resist the temptation to click on ads. If you haven’t actively searched for it, you don’t need it. And you’re only going to be bombarded with more ads for things you may find hard to resist. Unsubscribe from promotional catalogues and try to let go of sale FOMO. There will always be another one.
Change your outlook
Shifting your mindset will make you feel more positive about spending less. It can also lead to long-term behaviour change, which is what a financial detox is all about. Try not to think of saving money as missing out; it’s about choosing to live and consume more thoughtfully.
The rise of conscious consumerism means being frugal is the new Marie Kondo, without all the weird T-shirt folding.
Make it a challenge to borrow from friends (and vice versa) or buy second-hand when you can. Take pleasure in generating less waste through a more minimalist lifestyle.
Discover things like your local tool library or library of things to avoid buying expensive but infrequently used items.
Cash in clutter
Pre-Christmas is the perfect time to sell anything you no longer need to put extra cash in your pocket. Cull your wardrobe and clear out things like toys, books and sporting equipment. Online marketplaces are a simple place to buy and sell.
Let yourself fail
No one can be good all the time, so allow yourself a cheat day occasionally, when you can splurge on a night out or something you just can’t resist. Most diets fail because they’re too unrelenting. It’s the same with changing spending habits. One slip doesn’t mean you need to give up, in fact it may make you more determined to succeed. So good luck and be kind to yourself.
Did you know the world has a global doomsday seed vault?
Plunging deep inside a mountain on a remote island in the Svalbard archipelago, halfway between Norway and the North Pole, lies a global insurance policy seed vault. Every type of the world’s crop seeds – the largest collection of crop diversity on the planet – is stored here. The millions of seeds have been contributed by almost every country in the world – including Australia. It’s a collective planet pantry of important grain and pasture crop varieties such as rice, maize, wheat, eggplant, barley, lettuce and potato. The bunker is built to stand the test of time and the challenge of natural or man-made disasters. In case of any eventuality, the vault means that we would be able to restore the world’s food crops.
Containing a series of underground chambers, the vault penetrates more than 100 metres into the mountain, with just the entrance visible. Thanks to permafrost and the thick rock it sits deep within, the precious cargo of seeds will remain frozen even without power. The vault is also located far above sea level, protected from flooding if sea levels rise.
The Norwegian Government funded construction of the vault, which now operates on donations from foundations, governments, the private sector and individuals.
Why are nearly 60 per cent of Australian mortgages written through a mortgage broker like me?
- I give you access to multiple loans from multiple lenders, providing you with the benefits of competition and choice.
- I do the hard yards on your behalf when it comes to researching for a home loan that suits you. Buying a home is exciting, but it can be stressful – I can help ease any pain points by dealing with the lender and managing your application all the way to approval.
- Because I work for my customers, and not the banks, my sole focus is finding a loan that is the right fit for you. Together we’ll look at your unique circumstances, your financial situation and goals, before I recommend a loan that makes financial sense for you.
- It’s my job to stay up to date with what is happening in the market so I make the right recommendations for my customer. I stay across industry, economic and regulatory shifts so you don’t have to worry about any unexpected roadblocks.
Festive Fish Feast
While a glazed ham and roast turkey might be the traditional heroes of a festive table, let’s face it – a sunny Aussie Christmas lends itself to a table laden with a sensational seafood spread. Be it prawns, oysters, crayfish or smoked salmon, thrown on the barbecue or prepared the day before and served chilled. Let’s step through a few ideas for a festive seafood feast.
Don’t come the raw prawn with me: serve fresh prawns simply cooked and chilled on a big platter with wedges of lemon and a citrusy dipping sauce. Or throw them on the barbie – marinating and grilling seafood is a match made in heaven. Perhaps lightly dress fresh cooked and chopped prawns with sour cream, parsley and a squeezed and zested lemon before heaping it onto toasted slices of baguette for a jaunty canape-style starter. Prawns always please a peckish pack.
The world is your oyster: fresh oysters that taste of the sea are perfection au natural, but they also sing when topped with an Asian-inspired sweet and sour dressing. Or go retro and bring back oysters Kilpatrick – bacon makes everything better!
Go the whole hog: a whole salmon looks so impressive as the centerpiece of a festive table, and take your pick of cooking methods: it can be poached, baked (with capers and fresh herbs), barbecued or cured gravlax style. Or visit the fishmonger for a whole snapper and bake it en papillote with heaps of fresh herbs, lemon and olive oil.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.