2010 Summer

nicolez

Commanding views

PROPERTY REVIEW

Tower & London

www.towerlondon.com

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Tower & London

PROPERTY REVIEW

A quarterly magazine published by

Tower & London

Enquiries regarding this magazine should be made to:

Tower & London

38 Alfred Street,

Milsons Point NSW 2061

Phone: (61) 2 9956 6500 Fax (61) 2 9956 6522

Email: reception@towerlondon.com

Disclaimer:

The information contained in this publication is for general information purposes only. Readers are advised that

while an earnest effort has been taken to ensure the information in this document was obtained from reliable

sources, Tower & London gives no guarantees or warranties, written or implied, over the accuracy of the information

provided. Tower & London Pty Limited disclaims all responsibility for any loss or damage suffered as a result

of the use of the contents of this publication. The views expressed in this publication are those of the writers

and do not necessarily reflect the views of the publisher.

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Table of Contents

Spring 2010

Feature Property

2003/3 Herbert St. St Leonards Front cover

Message from John Tower

New Tenancy Laws 4-5

Current Sales 6-17

Stamp Duties on purchase 18

Tower & London offices 19

Useful Resources

Back Cover

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According to the Department of Fair Trading the

main objectives of the new act are to:

John Tower

M.D. Tower & London

Licensed Real Estate Agent

Registered Property Valuer



Fairly balance the rights and obligations

of tenants and landlords

Modernise and update the law in line

with current practices

The New Tenancies Act is unfair and

imbalanced.


The main changes are:

Reduce the level of disputes, by

providing greater clarity and certainty

in the legislation.

“The NSW Parliament has passed the Residential

Tenancies Act 2010, which includes some of the

most sweeping changes to residential tenancies in

decades. The changes will affect the control and

management of each and every rented residential

property in NSW and will have a profound impact

on property managers, landlords and tenants” Real

Estate Institute of NSW (REINSW)

REINSW has been actively working with the State

Government in an effort to soften the impact of the

new act on landlords and their agents; with some

degree of success. The outcome however is a

much transformed act largely favouring the tenants

rights over the landlords’ rights; however

some of the reforms give more certainty to the

landlords in some situations.

The draft bill was thoroughly contested by

REINSW; as a result of this pressure, the government

has since made extensive changes to the

original draft bill and working paper from 2007.

The Residential Tenancies Act 2010 was passed

by Parliament in June 2010. The Act is not yet law.

It will not come into effect until later in 2010, after

the necessary supporting regulations have been

made. Until this happens the existing laws continue

to apply, according the posting on the Department

of Fair Trading website.





Tenants get more time to move out: under

the current law, tenants get 60 days notice

plus 4 days’ postage and any weekend that

falls in postage period. Under the new law,

tenants will have to be given 90 days’ notice

plus postage and so on. The landlord only

gets three weeks’ notice and of course no

changes there. The one bright light here is

the landlord can now drop a letter in the tenants’

letter box and save nearly a week.

Ending a fixed term agreement: The current

law gives the landlord and tenant the

equally14 day’s notice prior to the end of the

lease to terminate and vacate the property.

This was seen as unfair to the tenant. The

new acts keeps the tenants’ the right’s to

give 14 days’ notice whilst the landlord will

be required to give the tenant 30 days’ notice.

The tenant can make minor alterations to

rented property: Tenants can make minor

alterations to the property, and the landlords

must not unreasonably withhold approval.

Landlords can still say no to painting, thanks

to the efforts of REINSW.

Faster rent arrears eviction process: Currently

landlords have to wait until the end of

the termination notice to apply for a hearing

to the Tenancies Tribunal for orders. The

new laws will allow the landlord to apply for a

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hearing at the same time as issuing the Termination

Notice; therefore saving the landlord

two weeks. Although this is heading in the right

direction, it remains very unfair to the landlord,

as the tenant, by then, is well behind in rent

and is likely to get two more weeks in the property

at the hearing; and the eviction process

can take another week; unwanted furniture and

rubbish is often left behind, it all takes time.

You can still write off two

months’ rent.

Rental Bonds Limited: The

maximum amount of rental

bond that can be charged will

be 4 weeks rent, regardless of

whether or not the place is

furnished, currently, six

weeks’ rent is usually kept for

furnished. Also, landlords will

not be allowed to request or

receive any bond ‘top–

ups’ during the course of a tenancy. The time

period for landlords and agents to lodge bonds

has been extended.

Optional lease ‘break fee’: Landlords will have

the option of including a fixed penalty in the

lease (a break fee), in the event that a tenant

breaks a lease before the end of the fixed term

period. Where there is no such penalty in the

lease, the tenant will still be liable to compensate

the landlord for any loss. Currently, tenants

pay a letting fee and rent until the property

is leased, if the tenant has no ability to pay,

the Tenancies Tribunal will probably let the

tenant off the lease.

Residential property investment has been improving

lately: rents have solidified, property values are stabilising

and interest rate rises are slowing; there is

more certainty and confidence within the residential

property investor segment. These new tenancy laws

run counter to this: by reducing the landlords rights

over their properties is certain to drive this fragile

segment into other investments.

Therefore, the fewer property investors the fewer

properties for rent. Rents will rise when the demand

exceeds supply, this is not favourable to property

investors because many tenants end up breaking

leases due to affordability problems, resulting in major

loss of income to the landlord; it’s certainly not

good for tenants as high rents are a real concern for

those with family commitments. So where is the

sense in these laws, are they purely driven by ideological

factors or are they in fact achieving the three

main objectives listed above, which they were designed

to meet.

The first point refers to balancing

the rights of tenants and landlords;

it is my view that the balance

has been tipped further towards

the tenant in many aspects

of this reform. The second

point is about modernising the

laws to current practices: One

area that has been completely

overlooked is notices by email;

as the majority of communication

between landlord and tenant is

by email, why not notices. To some degree these

reforms do clarify some vague situations; and that is

welcomed by the industry. Still the power and discretion

of the Tenancies Tribunal remains unreasonably

high.

The task of the property managers will be much

harder when these laws come to effect, as tenants’

rights increase, landlords become less satisfied with

their investments, this also usually reflects their satisfaction

with their property manager. The key will be

dependant on how the professional property manager

deals with landlords’ and tenants’ expectations

and motivations.

REINSW has been conducting many seminars and

courses, educating property managers with all aspects

of these reforms and equipping them to face

the many challenges ahead. These laws will come

into effect before the end of the year.

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Current Sales

2003/3 Herbert St, St Leonards

For Sale $750,000

SOLD

Space, light and views forever

Enjoy spectacular district views from every window of this 2 bedroom apartment,

perched at the northern end of the 20th floor in Forum West, the North Shore’s most

attractive development. Built above St Leonards plaza and railway station with modern

and efficient bathrooms, semi-open fully equipped kitchen, internal laundry, built-in

wardrobes, superb finishes and immaculately maintained. Secure parking and balcony.

Details and Viewing:

Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

607/48 Atchison St. St Leonards

For Sale $680,000

SOLD

Delightful 2br + Study

Arden is one of the best buildings in St Leonards village centre; on a quiet leafy street

front close to the station, but not so close one hears the trains. This corner apartment on

the sixth floor meets all the needs of an executive tenant or the owner occupier: featuring

a separate study which can be fully enclosed if need be; two bedrooms with built-ins, two

modern bathrooms; a fully equipped kitchen with stone bench tops and a useful balcony.

A total of 95 square meters plus a secure parking space on level 2.

Details and Viewing:

Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

1605/2 Dind Street, Milsons Point

For Sale $2,375,000

SOLD

Spectacular Harbour views

These main harbour view apartments are rarely offered in this most luxurious building

in Milsons point. The Pinnacle has a spectacular foyer, 24 hour concierge and resort

style pool and gym facilities. Perched on the 16th floor is this rambling apartment, situated

on the south eastern side of the building capturing uninterrupted main harbour,

bridge and city views. Modern and efficient fit-out throughout, comprising three double

bedrooms, two bathrooms, a massive lounge; and distinctive dining area. Double lock

up garage.

Details and Viewing:

Phone: 9956 6500

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Email: reception@towerlondon.com

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Current Sales

2/2 Banksia Road, Bellevue Hill

For Sale $1,100,000

SOLD

3 Bedroom Townhouse filled with light

Centrally located in Bellevue Hill near the Royal Sydney Golf Course; and in a small

block of four, townhouse 2 is perfectly positioned to escape the street noise and capture

light; the massive living room opens to a peaceful and private timber courtyard. Three

well sized bedrooms, all with built-ins and opening to a balcony, the main is delightful with

a walk-in wardrobe and a superb ensuite, another bathroom upstairs and a powder room

off the kitchen; and double lock-up garage securely below.

Details and Viewing:

Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

1602/55 Lavender Street, Milsons Point

For Sale $3,950,000

3 Bedrooms, 2 Bathrooms, 2 Parking spaces and

one spectacular view

The last building to the North of Milsons Point and to the east of Clark Park ,“Latitude”,

Winner of the 2008 UDIA National Awards for Excellence, Mirvac’s finest building in Milsons

Point features this superb apartment perfectly perched on the 16th floor and capturing

the ultimate harbour view. All rooms wrapped in glass, opening onto balconies with

shutters, enjoy harbour views spanning across to the Blue Mountains.

Details and Viewing:

Phone: 9956 6500

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Email: reception@towerlondon.com

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Current Sales

1603/2 Dind Street, Milsons Point

For Sale $1,230,000

3 Bedrooms, 2 Bathrooms, Parking and

North Easterly Aspect

“The Pinnacle” is a superbly appointed and secure building commanding a grand position

on the harbour. Apartment 1603 is situated on the northern and eastern side of the building

capturing warm winter sun and glimpses of Neutral Bay. Three good bedrooms, all

with built-in wardrobes, two with own balconies. Large open living space with timber floor

boards and ample light.

Details and Viewing:

Phone: 9956 6500

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Email: reception@towerlondon.com

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Current Sales

2102/ 2 Dind Street, Milsons Point

For Sale $2,180,000

Breathtaking views from wide open spaces

The Pinnacle is the finest apartment building in Milsons Point; this could possibly

be the best value apartment offered. Spectacular harbour views from every

room of this rambling property, perched on the 21st floor watch the sun set

with a magical array of colours. The main bedroom and the second bedroom

are almost identical in size with a smaller 3rd bedroom. The living room is

massive and features a separate dining nook. Modern kitchen, two bathrooms

and a powder room are lined with marble tiles. Double lock-up garage, 24

hour concierge, three fast lifts, indoor swimming pool, a gym and a beautiful

lobby.

Details and Viewing: Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

4/36 Milner Crescent, Wollstonecraft

SOLD at auction

Townhouse with light and space

In the midst of gum trees near Wollstonecraft Station, and nearly hidden from the

street level, lies a collection of distinctive townhouses; this one, just like a house,

with a double front door of its own. The three bedrooms on the top floor are delightful,

all looking out over trees; the main with an ensuite. Downstairs the spaces are

expansive, surrounded by sliding doors with timber shutters, separating the wraparound

courtyard and garden from the internal spaces. In winter the midday sun creates

a spectacle of light and colour, slightly shaded by the trees and shaped by the

shutters. Lock-up garage in secure parking area; total lot area is 226 sqm.

Details and Viewing: Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

3/110 Alfred Street, Milsons Point

For Sale $495,000

SOLD

Massive One Bedroom Unit

Situated on the North end of Milsons Point is one of the suburbs most prominent

buildings, unit 3 is positioned on the south eastern corner of the building with

east/northeast aspect, measuring 84 square meters; this has to be one of the

largest one bedroom units in the area. Nicely presented with a fully equipped

kitchen and a modern and efficient bathroom, bedroom and lounge room open to

a sunny balcony. Just a short stroll to the station.

Details and Viewing:

Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

54/7-17 Sinclair Street, Crows Nest

For Sale $385,000

SOLD

New York Style Loft

This classic Art Deco building was transformed into various style apartments in the

late 1990s; apartment 54 is loft style with living on the lower level and the bedroom

and bathroom on top. Well served with a good kitchen and internal laundry; two long

windows reveal distant city views. Solid building with secure parking in prime location.

Excellent investment property with a long-term tenant in place.

Details and Viewing:

Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

327/38-46 Albany Street, St Leonards

For Sale $400,000

1 Bedroom Apartment in the Aria

In the heart of St Leonards Village Centre is this medium sized colourful and efficient

building; on the third floor opposite the wonderful tree lined street we offer this nice

one bedroom unit, comprising an enclosed balcony, which doubles up as a large dining

area or study, and an internal laundry. Modern, tidy and ready to move in or have

it leased for $400 per week.

Details and Viewing: Phone: 9956 6500

Email: reception@towerlondon.com

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Current Sales

707/9 William Street, North Sydney

For Sale $525,000

SOLD

One Bedroom, balcony and views

In the Heart of North Sydney this modern building with gym and outdoor pool offers

a great one bedroom apartment with city and harbour views; the lounge and

bedroom open to a large balcony with massive views. Good size apartment with

light and character; lock-up garage in the heart of North Sydney.

Details and Viewing:

Phone: 9956 6500

Email: recepotion@towerlondon.com

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Stamp Duty on Purchase in NSW

Dutiable value of the dutiable property subject

to the dutiable transaction

Rate of duty

$0 - $14,000

$1.25 for every $100 or part of the dutiable

value

$175 plus $1.50 for every $100 or part ,

$14,001 - $30,000

by which the dutiable value exceeds

$14,000

$30,001 - $80,000

$415 plus $1.75 for every $100 or part, by

which the dutiable value exceeds $30,000

$1,290 plus $3.50 for every $100 or part,

$80,001 - $300,000

by which the dutiable value exceeds

$80,000

$8,990 plus $4.50 for every $100 or part,

$300,001 - $1m

by which the dutiable value exceeds

$300,000

$40,490 plus $5.50 for every $100 or part,

over $1m

by which the dutiable value exceeds

$1,000,000





A sale or transfer of land (including improvements) or a business in NSW is liable to duty. It is immaterial

whether or not the transaction is effected by a written instrument or by other means, including electronic

means.

A liability for duty arises when the sale or transfer occurs. However, if the sale or transfer is effected by a

written instrument, liability for duty arises when the instrument is first executed.

Duty is payable within 3 months of the date liability arises. The purchaser or transferee is liable to pay the

duty.

Purchasers of Newly-constructed dwellings worth up to $600,000 will receive 50% discount on stamp duty if

they purchase before 30 June 2010.

(source: NSW office State Revenue website)

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Sydney

38 Alfred Street, Milsons Point, NSW 2061

Phone: (612) 9956 6500 Fax: (612) 9956 6522

Hong Kong

6/F Luk Kwok Centre, 72 Gloucester Rd, Wan Chai

Phone: (852) 2918 8788 Fax: (852) 2918 9808

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Useful Resources

Tower & London

http://www.towerlondon.com

Department of Fair Trading

http://www.fairtrading.nsw.gov.au/

P: 9895 0111 F: 9895 0222

Consumer, Trader & Tenancy Tribunal

http://www.fairtrading.nsw.gov.au/cttt.html

P: 1300 135 399 F: 1300 135 247

Real Estate Institute of NSW

http://www.reinsw.com.au/

P: 9264 2343 F: 9267 9190

NSW Department of Lands

http://www.lands.nsw.gov.au/

P: 9228 6666

Office of State Revenue

http://www.osr.nsw.gov.au/

P: 1300 139 816 F: 1300 363 806

Reserve Bank of Australia

http://www.rba.gov.au

Real Estate.com.au

http://www.realestate.com.au/

Domain.com.au

http://www.domain.com.au/

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