Professionals Armidale 
The Professionals Armidale property management team leased 47 properties for the month of February. Our team also had 14 new investors engage our agency to utilise our asset management services.
The vacancy rate across our portfolio has reduced from 2.4% to 1.6% over the course of the month, however, we have also noticed a recent change in the market. On Monday 27th February, there were 113 properties in Armidale for lease, as opposed to the middle of 2022 when there were 70 properties for lease. This represents a 50% increase in the supply of rental housing over the past 6-8 months. In regards to demand, the average attendance to our inspections has reduced over the same time period. With an increase in supply and a decrease in demand, I expect to see a softening of rental prices whilst this trend continues.
“Our property management philosophy is simple –
to minimise arrears, vacancies, and expenses, and to maximise your return”
The RBA raised interest rates for the ninth time in a row and has signalled more interest rate pain ahead. Within minutes of this announcement, traders adjusted their prices to a peak in the cash rate of 3.9%, up from 3.7%. The most recent 0.25% rise adds $90 a month to a $600,000 variable mortgage.
Late last year, Second Commissioner Jeremy Hirschhorn, revealed that nine in ten sampled tax returns reporting net rental income required adjustment. He described separate data from the Tax Office random enquiry program, suggesting few of these adjustments are in the taxpayers’ favour.
The behaviour has included:
•Not declaring rental income.
•Not declaring capital gain on the sale of a rental property.
•Claiming the main residence exemption under the capital gains tax for the profit on the sale of a rental property.
•Claiming interest deductions when a property is not truly available for rent – eg. being used as a holiday home.
•Wrongly claiming capital expenditure as an immediate deduction.
•Assigning all rental income deductions to one spouse when the loss-making property is co-owned.
•Claiming deductions for the full cost of travel to a property when the travel was partly for other purposes such as holidays.
Professional Armidale Landlords Newsletter – February 2023
By Jamie Williams
Director
Head, Property Management / Investment Specialist
Professionals Armidale
M: 0481 173 322
P: 02 6772 4549
