Some say that buying a house is a lifelong commitment, just like marriage. It is also considered as a rite of passage for wedded couples. But renters, regardless of social or relationship status, become lodged to the rental market for one good reason: they can walk away from it without a hitch. This begs us to the question, “Do renters lack commitment?”

Articles about tenants are very common in housing or rental property websites. You can see a renter’s engagement to his/her responsibility to the rental property after he/she leaves the premises. It is quite disheartening for a landlord or the owner to see that their unit is disrespected by their former tenants. Instances like these make property owners to be more careful in choosing prospective renters from their roster of applicants.

Tenants and Their Commitment Issues

Commitment issues are normally associated with romantic relationships. A person who has a fear of commitment can also experience such trepidation in other areas of life. For instance, renting his/her own place.

According to statistics, around 30 percent of tenants of house rentals, condo units and apartments are divorcees. More often than not, these rental properties are their go-to places during and after the divorce. Separate data show that they rent the place from three to six months on average, and then move to another house listing.

Tenants also get in and out of rental properties because of work. When their fear of commitment strikes, they tend to evade or turn down long-term projects. More often than not, this attitude greatly affects their job performance and efficiency at work.

Students who dreaded commitments don’t invest time and effort in re/decorating their units. When at school, they also don’t put much time and effort in achieving their desired academic or career paths. Usually, they think about the responsibilities or the burden prior to doing the things that will help advance their studies.

Moreover, long-term partners or couples in the dating stage don’t just decide to leave their units and settle under one roof. May it be because of commitment issues or not, this undertaking marks the first step of a more serious relationship.

According to psychologists, the primary reason why tenants, and other people in general, have problems committing to something is because of their attachment issues. Sometimes, this is caused by abuse, abandonment or parents’ marital problems.

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commercial real estate BrisbaneWhat is a mortgage? It is the loan taken in order to purchase a properly, and this is paid for in a specified amount of time. It’s completely normal to take a mortgage from the bank, especially when it’s for commercial real estate Brisbane. A lot of real estate properties need financing prior to purchase, and thankfully, getting a mortgage has never been this easy. However, there are many guidelines and things to consider before getting a loan to buy a property. Although it’s easy to get, it’s not that easy to pay off. This is quite a major thing to deal with, and knowing how to handle it is very important. Here are some insights regarding the matter.

How you can prepare yourself for the mortgage

Before getting a mortgage for commercial real estate in Brisbane, make sure that you have the means to pay for it in the long run. As mentioned, paying off can be a problem if not done on schedule. The mortgage application will require a good amount of proof that they will be able to pay off the loan. Some mortgages can run for up to 25 years, and this is why there are a lot of residential mortgage holders that struggle to pay it off. If you have pending debt, then the likelihood of getting a mortgage from the bank is slim. You must have good credit and a good background when it comes to dealing with your finances.

Consult with someone who knows

It is also best to consult with a finance expert before getting a mortgage for commercial real estate in Brisbane. Their advice would be of great value since you will know more about what you’ll be getting into if you decide to avail of the loan. Financial advisers would probably ask about the size of your business, and the specifics of your plans. It is best to relay as much information as you can, since they will have clearer idea of how the mortgage will benefit you. More importantly, they can create a plan for your payment terms. Financial advisers can also discuss with you what will happen when you decide to get the mortgage.

The amount that you will mortgage will matter also when it comes to commercial real estate in Brisbane. A bigger amount doesn’t necessarily mean better, and if you loan more than what is needed, then paying it off will be a pain. Additionally, the interest rate will vary at this point. The bigger the amount, the higher the interest rate will be – and that isn’t exactly something you would want. When it comes to payment, banks offer flexible terms so that paying it off will be smooth and hassle-free as possible. Banks and other lenders will also duly notify all those who have availed of loans when it comes to paying time.

Important things to know and consider

There are many things that one must know and understand before getting a mortgage for commercial real estate in Brisbane. Knowing the best mortgage for your property is one of the most important things to do since this isn’t something that’s done on a whim. With this said, there are many financial advisers out there who would be more than willing to provide assistance. Before anything, you must learn the risks of not getting enough information regarding your mortgage. There are a lot of technicalities involved when it comes to finances, and it is beneficial to get guidance regarding this. Overall, getting a mortgage is a major move. You must be 100% ready and able when you get one since this a great responsibility from a personal and business standpoint.

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Brisbane is a huge market full of opportunities for those considering investing in property as it poses all the right factors to suggest decent to strong capital growth over the next couple of years. Actually, capital growth can be even noticed over the few months. Where you invest in Brisbane definitely depends on your budget, economics knowledge and your investment strategy, but in every market there are always suburbs that achieve much stronger capital growth. When it comes to investing in a property, no one has a crystal ball. However, through understanding the fundamentals of demand and supply and what pushes the property market forward, we can make a far more sound decision. By making sound decisions, you can lead your Brisbane business properly.

Supply and demand

That said, supply and demand is probably the most important factor when assessing where to invest as this primary economics law decides both capital growth and rental growth. Keep in mind that property prices move in response to changes in supply and demand. That said, if the supply is low and demand is high, prices will go up – this is a most important law of economics.

Flat rental return

For investors who are seeking constant cash flow, commercial property can be an excellent investment. For example, an investor who owns a residential property in Brisbane would consider himself lucky if he could get a rental return of 5% p.a. on a house and 6% p.a. on a flat or townhouse. On the other side, commercial property can provide for much higher rental returns.

Commercial investment returns

In the real estate business, it’s not uncommon for a retail property to earn 7% and in some cases, industrial properties can provide the investor with a return of over 10% p.a. However, the rental can greatly vary depending on a number of factors and conditions, such as location and age of the building.

Infrastructure Investment

Ongoing infrastructure projects within an area is an important factor to positive capital growth and will ensure the much needed growth for many years to come. By investing in a property in an area where is a major infrastructure investment, you can count on that particular area increasing in value. This definitely increases the value of property through making that particular area much more interesting and desirable to live. Since the Brisbane economy is growing, you need to find a growing area that attracts many investors.

Greater return, greater risk

As far as investment is concerned, a greater capital growth and greater return is always associated with a greater risk. Probably the main risk with renting a property is vacancy. For example, if you lose a tenant from your flat, it will probably take a month to find a new tenant. On the other side, if you lose a tenant from your industrial or commercial property, it may take months, or even years, to find a tenant. You may even need to ask your Brisbane chauffeur to help you find a new tenant. That’s why it’s a good idea to buy commercial properties only in Brisbane industrial zones and areas. That way, the risk is slightly less. That said, residential property has a better capital growth, but commercial or industrial property has a better cash flow.

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Sydney, like the great big cities of the world, is becoming unaffordable for many lower socioeconomic groups and individuals. To live somewhere nice in Sydney, by the harbour or in the affluent eastern suburbs, you need to be worth, or earning, a packet or two. The poorer are being pushed out to the fringes of the city and must make do with second or third class amenities. There are more struggle streets in Sydney due to rental rises, as landlords maximise their profits; extracting every last penny from the pockets of the poor.

Property price spirals are a vicious circle, as vendors and agents hold out for record prices in the market, investors are then forced to pass on these increased costs to renters. The cost of living and doing business, generally, rises and everything in Sydney becomes more expensive. I lived in Sydney for much of my adult life and returning for a working holiday visit recently, I was shocked at the basic costs of living. Rents are ridiculously high for what space they afford and the price of doing business in the Harbour City is prohibitively expensive.

The average weekly rental in Sydney is now five hundred and thirty dollars; people are running to stand still. How much of the average weekly earnings are going on rent, I wonder? Half for some and may be more for those struggling to get enough casual employment. Many people need debt help to cope with this situation, as they depend on credit cards and personal loans to get them through the month. Why do they remain in Sydney and why do they not head for greener pastures? Lack of mobility is another curse of poverty; the poor cannot just pick up sticks and move out. Many of them are stuck in unenviable positions.

The young enjoy the stimulation offered by big cities and put up with dire living standards to party. When those same people begin to marry and start families, the trend is to move out to areas that are cheaper and offer more space. Eventually the lure of success in the big city may wear off and these people may relocate to smaller capital cities in other states or regional areas within NSW. There are reports of the gentrification process currently happening in New York, where the creative inhabitants of that city can no longer afford to live and work there, and are being replaced by wealthy denizens from other parts of America. Will Sydney suffer the same fate in years to come?

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The reality of renting, of being a tenant, is that you are, somewhat, at the mercy of fate when it comes to who your neighbours are and how they may behave. You may, for instance, discover, only upon moving into an apartment, that your next door neighbours are pest-attracting hoarders, have a hundred cats, or even run a brothel from their apartment. In circumstances, such as these, you may complain to authorities, like local government agencies and, even, the police, but this will not guarantee that your landlord, or landlady, will allow you to cancel a tenancy, which has time to run.

At least, not in the short-term, that is, repeated complaints to relevant authorities, which are well documented, may, eventually, result in a sympathetic hearing from property managers and owners, but there is no guarantee. Tenancy laws in Australia are under the jurisdiction of the states; in NSW the only relevant breach by the owner of the property, which possibly could be used to get a lease cancelled is that the premises is unliveable. Tenants would need to prove that the property has become unliveable due to the behaviour of the neighbours; this would not be easy.

Vermin would have to be a major issue in the case of unhygienic practices by neighbours. In the case of a brothel running next door, safety and security could be mounted as an issue, but well documented evidence would need to be provided, backed up by Council and police. In the instance of a variety of high-class escorts going to and from the apartment all day, this may not justify enough of a real and present danger. It would more likely be successful if there were a lot of men hanging around the building, and that the tenants complaining had children.

In Australia, property owners are kings and queens, the humble tenant has few rights when compared to renters in parts of Europe; where home ownership is rarer. Home ownership in Australia is a holy grail and real estate investors are protected by laws, which encourage more investing at the expense of tenant’s rights. Recently, a friend of mine who had lived in the same building as a tenant for twenty years was given a few weeks’ notice to vacate his home; I use the term home to reflect his emotional attachment to his apartment. This would not happen in France, where long term renters have rights, protecting their attachment to their homes; despite the fact that they do not own the property. My friend, committed suicide shortly after his evacuation of his long term abode, I am not saying that there were no other issues involved but it certainly didn’t help.

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