Last week, we reported on the booming property sales market in the inner west.

It also follows that the inner west is a rental hotspot. Basically, you can’t go wrong.

Property vacancy rates in the inner west are currently less than 1% – which is great news for inner west property investors.

Why the inner west wins on location

The inner west’s location is one of its biggest selling points. It’s close to Sydney’s universities, close to the CBD, close to Central Station and not far from Sydney’s famous beaches.

With its wide range of suburbs, each with its own individual character, rental property in the inner west comes under demand from all kinds of people.

Students look to rent in the area thanks to its proximity to the University of Sydney, UTS, University of NSW, University of Notre Dame and the Australian Catholic University.

Young professionals and families alike want to rent in the inner west for its affordability, proximity to the city, great transport links and community lifestyle.

Newtown, for example, offers a bohemian lifestyle, filled with cafes, bars, restaurants and cinemas. Marrickville and Leichhardt both boast a variety of multicultural delis, grocers and restaurants. And Annandale and Balmain are perfect for the trendy young professional and young family, with their boutique shops and village-like atmospheres.

Inner west suburbs: something for everyone

There are international cultural influences aplenty all around the inner west. There are the Italian influences in Leichhardt – THE place to go if you’re looking for a decent pizza or some amazing gelato. Haberfield is also known as one of Australia’s true Italian hotspots.

Greek and Vietnamese restaurants are abundant in Marrickville, while Ashfield is famed for its Chinese and Polish influences. Add to this the Korean influences in Stratham and the Portuguese influences in Petersham, and that’s a fair chunk of cultures covered.

Finally, there are strong Aboriginal influences in Glebe and Redfern, and strong British expatriate links in the village-like suburbs of Annandale and Balmain.

Inner west property management

If you’re a landlord looking for help with renting out your property, Exchange can do all the work for you.

For starters, download our free Investment Property Management Guide.

To keep abreast of property news for Sydney’s inner west, and to follow our regular hints and tips for selling or renting your property, sign up to the free monthly Exchange newsletter.

Real estate in the suburbs of Annandale, Petersham, Alexandria, Newtown and Camperdown are continually outperforming other regions when it comes to auction clearance rates.

The inner west is proving itself as the place to invest. Its proximity to the city, good transport links, and affordability in comparison to Sydney’s other suburbs are paying off.

And the proof is in recent stats from RP Data: the rate of property turnover in in inner west is high, and the average clearance rates are impressive – at 76%.

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Inner west auction clearance rates

Auction clearance rates are so high that the inner west is recording more weekly auctions than in entire states elsewhere.

In one week last month, there were 214 property auctions in the inner western suburbs of Annandale, Petersham, Alexandria, Newtown and Camperdown.

That’s more than there were in Western Australia, the ACT, Tasmania or the Northern Territory.

At the end of April, auction clearance rates in the inner west reached their highest level so far this year, at 76%.

Biggest auction day since 2010

The inner west also performed the best on the biggest auction day for Sydney since 2010.

On one Saturday last month, more than 730 auctions were scheduled across Sydney – but many properties sold beforehand.

There were 110 auctions reported in the inner west, with 84 selling – that’s a high sales rate of 76.4%.

Michael Glynn, an agent for McGrath’s, told the Sydney Morning Herald that the inner west is selling so well because of sellers being “a little more realistic on their expectations” and buyers recognising that the inner western suburbs continue to represent good value.

Sign up for more news and tips

To keep on top of property news for the inner west – and to get tips for selling or renting your property – sign up for the free Exchange monthly newsletter.

And, if you’re selling your property, Exchange’s Home Selling Guide can help.

Whether it’s your home or an empty rental investment you’re trying to sell, there are some simple things you can do to help – without spending a fortune.

In this latest podcast, Exchange licensee and director Ian Comyns shares some helpful tips on where to invest your time – and how to get the most bang for your buck.

1. For home buyers, first impressions count!

The selling starts as soon as the potential buyer pulls up outside your property, so you want to ensure it’s clean and tidy outside, and your house or unit number is clearly shown.

Trish Sandling, owner of T Design in Sydney, has been styling homes to help them sell for 20 years.

She explains: “From the moment prospective buyers pull up outside a property, they’re making decisions. When you own a property, you become complacent. But things like not having a number on the front of a house are a real turn-off.”

Cleaning up the front of the property, tidying up the garden and pruning trees are also important. Take a look at our recent podcast on why trees can be a property owner’s enemy.

2. De-cluttering adds serious value

Get rid of any clutter in your home and you will not only make your property appear larger – you will make it easier for potential buyers to see how they could make it their own.

“Spend a lot of time de-cluttering,” advises Sandling. “It’s advisable to pack up a lot of your belongings and put them into storage as soon as your house is on the market. What you don’t pack up now, you’re only going to have to pack up in six weeks’ time when you move anyway.”

Putting away personal photos is also a top tip. You want people to be able to see themselves in the property – not you.

3. Why property stylists help sell

If it’s a rental property you want to sell, chances are it’s empty – so getting a stylist in can work wonders. Stylists will not only suggest what should go where, they will rent furniture to make a property look like a home.

“Place furniture so it maximises the use of rooms and reflects how many people can live in the home,” advises Sandling.

For example, don’t place just one sofa and one TV in the lounge of a three-bedroom house. People will expect to see enough seating for at least four people.

4. Ultimate selling tip: no TV!

A final tip: plugging in the TV and fitting the furniture in around it is a big no-no.

“One thing a lot of people do wrong is to style the entire living room around the TV point,” says Sandling.

“I ignore the TV point and style the room, then put the TV where it fits best. But ideally you should go without the TV altogether.”

5. Do your research: Home Selling Guide

Find out how Exchange Property Management would achieve a great price for your home by downloading a copy of our Home Selling Guide.

The Sydney suburb was officially the fastest-selling suburb in New South Wales over the past 12 months.

According to figures released by RP Data property data analysts, homes in Chippendale took an average of just 18 days to sell over the last year. This was seven days faster than the next suburb on the list, southern Sydney’s Beverley Park, where homes took an average of 25 days to sell.

Small suburb ripe for investment

Chippendale is a relatively small suburb. In the 2006 census, the population of Chippendale was recorded as 4,066.

But it is its proximity to the city – it is right on the border with the southern end of the CBD – plus its closeness to Sydney University, that makes it a winner.

Although only 17 homes sold in Chippendale in the last year, the fact that each sale took, on average, two-and-a-half weeks to happen is a clear indicator that houses there are sought-after.

Inner west continues to deliver value

Sydney’s inner western suburbs are a great place to think about investing in property.

The likes of Newtown, Camperdown, Glebe, Stanmore, Leichhardt, Petersham and of course Chippendale are close to the city, but don’t price out most people in the way that Sydney’s eastern suburbs do.

In an early April property sales rush, the inner west fared best. Of 110 properties up for auction, 84 sold – a sale rate of 76.4%. To compare, the sale rate in the city and east was 56.3% and on the lower north shore was 61.3%.

Australian Property Monitors’ chief economist Andrew Wilson said the high rate of sale in the inner west was “no real surprise”.

“The inner west is close to the CBD and relatively affordable,” wrote Wilson in a column in The Sydney Morning Herald.

“The strengthening economy is generating job opportunities in the CBD so, naturally, people want to live close by.

“The inner west still represents some of the best value given its proximity to the city and the quality of its facilities and amenities including the light rail, private and government schools, shopping, cafes and restaurants, hospitals, universities, parkland and foreshore recreation.”

Selling tips in the inner west

For tips on the steps you should take to get the best deal when selling your property, download the Exchange Home Selling Guide.

Noisy neighbours, barking dogs, damage to property and collapsed fences. Living in a strata property has the potential to throw up all kinds of problems that get in the way of peaceful and harmonious living.

Last week, Exchange director Ian Comyns shared his tips on how to deal with unfair strata fees. This week, we’re addressing the myriad of other legal issues that can arise in strata properties – and how to deal with them.

To discuss the issue, Exchange spoke to one of
 Australia’s leading strata law 
firms, J.S. Mueller & Co, in Sydney.

Common strata complaints

J.S. Mueller associate solicitor Adrian Mueller helps both owners’ corporations and individual owners resolve legal issues in strata properties.

Everyday problems such as noisy neighbours, barking dogs, miaowing cats, noisy floor coverings, smoking neighbours and loud TVs or music are regular battles for Mueller.

And with owners’ corporations, he helps resolve contract disputes between corporations and building managers, and issues with collapsed retaining walls or dividing fences. He also does general litigation, such as compensation claims for damage to property.

“It’s very diverse,” explained Mueller. “But the most common issue is neighbour disputes, which are usually caused by noise complaints.”

Best strata advice: choose your home carefully

Prevention is always better than cure. So taking the time to choose where you’re going to live – and what kind of strata set-up it involves – is important.

“Choose your home very carefully – think about not just the conveyancing aspect but who you will be living next door to,” advised Mueller.

“The cases I deal with are often protracted and can be very emotional.”

Solving strata property issues

If you do come up against neighbour problems, Mueller’s main piece of advice is to “act quickly and be as polite as possible”.

Mueller’s recommended plan of action is as follows:

• Approach the neighbour in a friendly way and explain the problem.
• If that doesn’t work, follow up with a letter.
• Failing that, approach the owners’ corporation or strata management.
• The next step is to consult with a lawyer or apply to the Office of Fair Trading to have the dispute mediated.
• The last resort is to take the case to the Consumer, Trader and Tenancy Tribunal and apply for an order to be taken out against the neighbour.

NSW strata laws review

The New South Wales Government will be starting a comprehensive review of the state’s strata laws within the next few months.

An initial public consultation revealed illegal parking, elevator contracts, smoking, overdue levies and voting are all issues that strata property owners want to see addressed.

You can read the current legislation and register to be kept informed of the review’s progress on the NSW Government’s website.

But how easy is it? And where on earth (literally) do you start?

John Jones* is what you could call a “property investment junkie”. Initially investing in a small commercial property eight years ago, he now part-owns four residential and two commercial properties, valued from $350,000 to $750,000.

With a wealth of investment experience, John has some top tips for anyone thinking of joining his ranks.

Financial flexibility

“Property investment is a way to get financial freedom and flexibility,” he says. “It’s a passive form of investment, as it doesn’t require much input once the buying’s done. But remember it’s no quick moneymaker, it takes commitment – you must be prepared to have your money tied up for a while.”

Sydneysider John, who has a full-time job unrelated to property, part-owns properties in Sydney and Brisbane.

“I don’t look for anything in particular, but they must be places I would live in myself,” he says. “My properties are close to CBDs and low-risk – none have been vacant for more than a fortnight.”

Keep your eyes open

John doesn’t limit himself to any one suburb – and he always has his eyes open.

“I keep a lookout when I have savings,” he says. “I look for a place that has something different, maybe extra space or a good location. And I’d consider buying further afield in future. The more property you own in one state, the more land tax you pay.”

Investment advice

John has plenty of top tips:

• Save up a good deposit – about 20% – so you don’t have to pay mortgage insurance and you have a buffer if circumstances change.
• Don’t underestimate the costs involved – you’re looking at $30,000.
• Get a conveyancer.
• Set up an offset account. This is tied to your loan account and its balance is used to reduce the amount owed on your loan.
• If you’re looking at buying a strata property, get hold of minutes from owner corporation meetings to see how the property is managed.
• Understand what you’re buying and how you’re financing it. If you don’t understand it, don’t do it.

Then when you’ve bought your investment property, get it professionally managed.

If you’ve bought an investment property anywhere in Sydney’s inner west and east, we’d love to help you manage it properly.

Find out more about how we’d manage your investment property at www.exchange-property.com.au/renting-out

*Not his real name

In this latest video, Exchange director Ian Comyns shares his advice on how to make sure you get a fair deal.

Strata from Talking Brand on Vimeo

What is a strata levy?

Strata levies cover the day-to-day running of the building, as well as an emergency fund for unforseen expenses.

Strata fees will pay for work that needs to be done to shared areas or fees for shared responsibilities. That’s everything from minor repairs to common property, grounds maintenance and building/public liability insurance through to major maintenance or upgrades that need to be done to the building.

Calculating strata levies

Most property owners don’t know how the strata levies are determined and there are lots of misconceptions surrounding the issue.

The building’s owners corporation determines the levies annually, working to a budget that must be presented at the Annual General Meeting. The levy amount set is payable by every owner based on their unit entitlement. Generally, the bigger the unit entitlement, the more levy is paid.

Comyns explains: “Put simply, the valuation at the time the strata plan was registered is the sole basis upon which the unit entitlement can be determined.”

How can you challenge your strata levy?

In order to get your strata levy changed, you’ll need to take your case to the Consumer, Trader and Tenancy Tribunal. Applications can be made by individuals, or by groups of neighbours with the same owners corporation.

“Obviously, if you can gain the agreement of all your neighbours then your application is going to have a very strong chance of success,” adds Comyns. “So don’t despair – it can be done.”

You can find out more details about strata arrangements and legalities at the Strataman website.

Investing in a property remotely can leave you with more questions than answers

Listed at number six in The Economist’s World’s Most Livable Cities, it doesn’t take a genius to figure out that Sydney is a sought-after, reliable – and competitive – place to invest in.

But which suburb, and when?

A safe bet

While some areas of Sydney are basically reserved for the millionaires, the inner west is more affordable, rapidly growing and, therefore, a great place to think about purchasing property.

What’s more, it’s got great transport links to the city. And, if there’s one thing that makes a Sydney home attractive, it’s its proximity to the city.

Andrew Wilson, chief economist at Australian Property Monitors, said of the inner west: “I think the struggle to get closer to the CBD, to commute, is becoming more profound for Sydneysiders and any areas that still remain within a reasonably affordable band are a good opportunity for investors.”

12 months of popularity

Reports of the inner west suburbs being a popular and sensible place to buy are not new – they were strong 12 months ago and are still coming through thick and fast.

This time last year, the inner west had an auction clearance rate of 70% – showing a very strong property market. Also last year, nexthotspot.com.au dubbed Western Sydney “the most solid bet in 2011”.

The property market for the inner west defied the odds and stayed strong throughout 2011.

For 2012, it remains a safe bet: more affordable than its eastern suburbs counterparts, accessible and growing.

The inner west is set to become even more desirable in the future, as the planned light rail extension from late this year will take in Leichhardt North, Hawthorne, Marion, Taverners Hill, Lewisham West, Waratah Mills, Arlington, Dulwich Grove and Dulwich Hill.

Negotiating price is a notoriously tricky process. Go in too high and there’s a chance you’ll be parting with unnecessary dollars, but go in too low and you risk being laughed out of the process.

Here’s a checklist you should follow to make sure you pitch your offer just right.

CMA report

The first – and crucial – thing you’ll need is a Comparative Market Appraisal report. It will tell you how much homes of a certain size, within a set radius, have sold for, helping you check up on the agency’s price guide.

You should also get a property valuation done by an independent and certified valuer.

Question the vendor

Finding out as much as you can about the vendor could clinch it for you.

“Details about the vendor can be vital when negotiating,” says inner west real estate expert Ian Comyns. “At the end of the day, vendors are people and selling has an emotional side – you want to be able to appeal to that. You also want to know if there are things you can offer that can be traded off for price, such as short settlement terms.”

Key questions:

• Why is the vendor selling?
• How long have they owned it?
• What are their preferred settlement terms?
• Is the property owner-occupied, an investment and/or tenanted?
• How long has it been on the market?

Setting your price

Neil Jenman, author of Real Estate Mistakes, says the worst thing you can do is bluff. “If the property is exactly what you want, declare your maximum price in writing at the beginning – and be prepared to walk away,” he says.

Ask your agent: “why are they asking this price?” and “how much will they take?”. Adding in a query like “is there anything else I should know?” can also uncover extra tidbits of information.

Be objective

Buying and selling homes gets emotional. The more objective you can be, the better.

“I recommend buyers work out a price based on objective evidence,” adds Comyns. “Then, and only then, work out what it’s worth to them.”

Be warned

Finally, one quick word of warning: just because you’ve negotiated your price and paid an initial deposit, you don’t own that property – and you can still be gazumped. Only after you’ve signed, exchanged contracts and paid the minimum deposit required under contract are you the homeowner.

If you’d like even more information on the 6 steps you need to take from getting the finance to sealing your property investment deal – with some bonus tips on negotiating the best price – then download our Property Investor Handbook.

Property renovations of this kind are different from traditional property investment strategies, which usually rely on building a property portfolio and waiting for long term capital growth.

Renovating for profit is more about yielding high returns quickly by sticking to a proven formula, as opposed to buying a property and waiting for its value to increase over time.

They’re typically carried out quickly and within a set budget so that the house or unit can eventually be put back on the rental or real estate market.

Buyer’s market

With home loan interest rates now at low levels of under 6%, HIA chief economist, Harley Dale, is encouraging investors to buy property now because it’s a real “buyer’s market” at the moment.

“If you have the funds to make a financially responsible decision to buy property, then now is definitely a good time to buy,” the HIA chief economist said.

Dale also recommends that investors entering the property market should bide their time before selling.

Renovating for profit? We’ll manage it

If you’re pushed for time, inexperienced or worried about dodgy builders then of course Exchange Property Sales and Management can manage your investment property’s mini-makeover. We’ll also give you feedback about how much to spend.

For example on an investment property left in a ‘rancid’ state by the previous tenants, the owner proposed a renovation that would include a variety of things including an all new kitchen.

“That just would have been over capitalizing,” says inner west real estate expert Ian Comyns. “In the end, we managed the job so that the property got fresh paint, new carpet, a new vanity and a couple of new fittings such as light fittings. We then selected an excellent tenant.”

To learn more about property investment and how you can get started, watch our latest video by Exchange property management expert, Ian Comyns, on how to build an investment portfolio, or keep an eye out for Part 2 of our Renovating for profit series coming up next week.