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Australian Property News

 

Property News from Queensland, Australia

March 2007

The Investment market in 2007 has really taken off. Despite interest rate rises in 2006 a feeling of excitement is being felt everywhere. Enquiries are running hotter than at anytime in the last four years.

Over the past year market analysts have been forecasting expected growth of up to 40 percent over the period 2008 and 2009 all indicators are showing that these forecasts will be accurate. 

The banks gave out $188 billion last year in new housing loans (excluding refinancing) - nine times as much as in the late '80s boom.

Of that, $118 billion, or 63 per cent, was lent to owner-occupiers, five times the $23.4 billion they borrowed during the boom of 1988. And $70 billion or 37 per cent was lent to rental investors - 12 times as much as in 1988. Analysis by the Reserve Bank shows rent rises over the past decade have been disproportionate when compared to increases in house prices.

While house prices have increased 175 per cent since the mid-1990s, rents have increased by 60 per cent.

Vacancy rates are low at 1.7% in Brisbane and rents have risen strongly in the past year. The median rent for three-bedroom houses rose 17% while the typical rent for two-bedroom units rose 18%, with newspaper reports of tenants forced to out bid each other for vacant properties.

The year of “Me”

The New Year’s resolution survey by Wizard Home Loans – Australia, said almost two in three people ranked getting ahead financially at the top of their list.

Wizard chairman Mark Bouris said the survey showed that this year would be the year of "me".

"People are looking at themselves first," he said. 

"Spending more time helping others (7 per cent) and becoming more environmentally friendly (6 per cent) ranked surprisingly low on the priority list."

Mr Bouris said 2006 had hit consumers in the pocket, with interest rates, petrol and even the cost of bananas soaring, following the Queensland cyclone.

Sixty per cent of respondents said this year they would get serious about saving.

"The new year is the perfect opportunity to get your finances in order," Mr Bouris said.

Of those surveyed, 37 per cent said saving money was the way to get ahead; 23 per cent said buying a property was.

Half of those questioned said they were comfortable with their debt.

"Interest rate rises or not, it's obvious Australians aren't getting bogged down by external influences such as interest rate movements and are instead intent on getting their finances in order in 2007," Mr Bouris said.

The survey, of 300 Australians, was conducted for Wizard Home Loans by Pureprofile between December 18 and 19.

 Queensland and New South Wales long suffering motorists see light at the end of the tunnel 

The much-anticipated Tugun bypass is expected to open six months earlier than expected.

The $543 million road, designed to end a chronic bottleneck at the intersection of the M1 and Gold Coast Highway at Tugun, will be completed mid 2008, instead of the end of 2008.

The most complex stage of the bypass, a 335m tunnel under the Gold Coast Airport runway, is more than half finished and the first bitumen is expected to be laid later this year.

The Tugun bypass is the most expensive four-lane freeway road built in Australia, costing an average of $72,800 a metre.

 SUN, surf and cheap beer – it is no wonder 209 people migrate to Queensland each day.

According to new figures released by the Australian Bureau of Statistics, Brisbane residents pay less for the average trolley of grocery staples than shoppers in any other capital city across the country. Add beer to the list as well - PLUS by far the cheapest petrol.

The average Brisbane petrol price of $1.08 a litre was more than 18¢ cheaper than the average price to fill up at a Darwin bowser and an average of 7¢ a litre less than what most Sydneysiders are forced to fork out.

 Impressive figures always a feature on Queensland’s Gold Coast 

Notwithstanding Beach Babes who loll around on our 52 kilometres of beautiful beaches, check these figures out:

Throughout the Gold Coast there are 2194 Council parks covering more than 30,000 hectares, 110 playing fields, 492 barbecues and 2250 pieces of play equipment for the children!

 Foreign buyers spent almost $1billion buying Queensland property in the last year.

Buyers from Britain own the largest share, together with people from 126 countries

 Peace of mind insurance

Only 10 per cent of the two million investment properties in Australia have some form of rental insurance product.

For less than a week’s rent Landlord Protection covers disappearance of a tenant, losses caused by vacancy, damage by tenants, repair of same and rent replacement payable to the owner while said damage is repaired.

Easy to arrange- a well worthwhile investment towards a good night’s sleep!

Saving Tax

Got your attention? Good. Don’t leave it till the last minute. As an investor, now is a good time to work out your expenses and tax deductions prior to June 30th.

You can reduce the amount of your personal tax payable this year by offsetting expenses against your properties. Here are some tips:

Attend to maintenance issues before 30th June each financial year

Prepay insurance

Prepay interest on your investment loan

Purchase another investment property (Great thinking!)

Maximize your borrowings on rental properties and minimize your family home borrowings

Ensure that you claim all deductions possible;

Management fees

Advertising expenses

Body Corporate levies

Insurance premiums

Rates

Bank charges

Borrowing costs

Depreciation (building, goods, chattels and fittings – CHECK have you got a depreciation schedule in place prepared by a quantity surveyor? If needing assistance, give us a call)

Interest

Legal expenses

Accounting fees

Maintenance

Postage and faxes

Travel expenses to inspect property/ies

 Also check www.depreciator.com.au for some more tips.

 Bulldozers clearing new Town Centre at Coomera

One of the fastest growing areas in all of Queensland, Coomera, is to finally have it’s town centre. After much discussion and delay by Council, major developers and the State Government etc we noticed bulldozers were starting to clear the sites last week.

The $200 million centre will have major retail, commercial and residential areas along with a Technical and Further Education College, Library, Town Pool and a bus depot.

It will be located adjacent to Dreamworld- one of the Gold Coast’s theme parks

 New investors capitalizing on rental property shortage

 New research by mortgage lender Wizard Home Loans shows a tightening in the rental market has spurred a record increase in the number of people planning to invest in the residential property market.

The latest survey in Wizard's Tomorrow's Property Investors series found the number of Australians planning to buy a residential investment property in the next 12 months has jumped by 35 per cent, and most are first – time investors.

About 779,000 in the December quarter signaled an intention to buy, as opposed to 577,000 in the September quarter.

"Our research indicates that borrowers are responding to, and attempting to capitalize on, increasing reports of limited supply of rental accommodation and predictions of sharp increases in rental yields," Mr Bouris said.

The average household income of aspiring buyers grew to $109,500 from $104,700, according to the results.

About 6,000 people took part in the study in the three months to December, 2006.

Happy Investing

IAN BEGAUD
realisticproperty.com.au

Investing in property should be treated as just that, an investment - it is not an emotional decision and it needs to be based on many criteria – tax and depreciation, demographics, infrastructure planning, changes in Government planning, availability of schools, Universities, medical facilities, leisure and sporting facilities among them. To be assisted with those aspects of your investment, you can be assured of receiving the correct information from our organization and partners.

 

Disclaimer: The author has collected and collated the information contained herein from third party sources and does not warrant that it has been checked for accuracy. Accordingly, the author takes no responsibility for the consequences of any person relying upon any information contained herein. Anyone considering taking action is directed to discuss any proposed actions with a professional financial consultant.

 

 
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