Byron Property Search Newsletter
December 09
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Hi All,
Welcome to the December BPS newsletter.
I have some Byron Bay property news this month. But please read to the bottom of this issue as I have come across a swathe of interesting investment options that is sure to interest many of you.
NEWS ON THE STREET
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The property market in the Byron area remains very strong. September and October were actually stronger than November, which is strange, as November is usually a strong selling month. Quality and correct pricing is not lasting long. The latest interest rate rise and the dropping of the FHOG booster is not fazing local buyers.
PROPERTY HIGHLIGHTS
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MULLUMBIMBY
Mullum is still running hot. This is highlighted by the arrival of new For Sale signs from Byron based agencies coming to town and the rumour that more than one is wanting to open an office there. Many think that Mullum is overpriced already and that may be true. I still like the larger blocks that have rear lane access and may get dual occupancy zoning after the Sewerage Treatment Plant is finished in 2 - 3 years. I know of a couple that are fairly priced.
NIMBIN
Nimbin is a place that I have long been promoting and is finally getting a run in the sun. Notice the one page advert in this weeks Echo. It has had its problems over the years but its idiosyncrasies and quirkiness is something that will become more valuable in the years to come as the rest of the world becomes more suburban and bland. I have direct access to some vacant blocks at good prices. House and land packages are available with good rental return.
COORABELL
Somebody got a bargain at an auction the other weekend. $280,000 for an acre at Coorabell. This development has been slow in taking off. Which I was surprised about. There are other small acreages there for as low $300Ks.
MULLUM #2
I notice with interest that the vacant blocks at Tallowood Ridge (http://www.tallowoodridge.com) are now moving very fast indeed. Could it be the power of this newsletter? There are a few blocks left if anyone would like me to show them around.
BLOWING MY OWN TRUMPET
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I was pleased to see that two recent predictions in this newsletter have proved prescient. In the August 09 issue I said that unit prices were set to rise in relation to freehold houses. This has now proved to be true with a recent report from RPData stating that for the first time in history the median price of units are now on par with house prices in the same market. The reason for this is the popularity of less garden and more property and that rental return is just as good with a unit or a house.
Just a couple of months ago I suggested that Top End was offering excellent buying opportunities as that was the sector most savaged by the GFC. It looks like that $2M plus properties are now all go and steady rises happening. A few big sales are pending and the bigger fish are jumping back in the water.
A BUNDLE OF BUSINESS OPTIONS
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During the last month I have come across quite a few investment options that I thought were interesting and worthy of passing on to my readers. I have done enough research to consider them as viable and credible, however I am not a financial planner or an accountant so please take your own council. If you are interested in any of them - contact me and I will put you in touch with the promoters and principals.
1. DUPLEX DEVELOPMENTS
A builder I have worked with in the past and who does good work has presented me with a plan. He is looking for smaller investors interested in joining in a syndicate through a trust fund to do duplex and small unit development. I believe this is a good way for smaller investors to be involved in this type of investment, which can pay good dividends.
2. SOLAR POWER
If you have a business or a farm, you may be interested in a commercial solar investment opportunity. It has the potential to yield over 16% PA for an investment of approx $26K for the 5KW system or $54K for the 10KW system. To take advantage of the present Small Business Depreciation Allowance tax benefit the contract needs to be signed before the end of this month.
It still stacks up without the tax write off but will cost another $5K or 10 K respectively. With rising energy prices and a proposed NSW gross feed-in-tariff of $0.60KWH this may not only be a sound and attractive investment, but will also help to offset energy costs and reduce your environmental footprint.
3. SHARE MARKET CAPITAL RAISING
This one is for sophisticated investors only and requires $10,000 PA minimum per individual investment and an ongoing membership fee. An experienced broker and financial planner is opening a book to supply small cap Australian miners with quality capital raisings. Involvement will give you access to hot floats, IPOs and placements at a steep discount to market. You maintain control over your own funds and invest only after you give designated authority. A PDF info sheet and some track record history (very impressive) is available. First in first serve and will close after the book is filled.
4. USA PROPERTIES
An adventurous opportunity is available to local investors ready to jump into the US housing market. With the Oz dollar at such a high against the greenback and the US property market so massively discounted - it could be a good bet. The properties are already held and can be transferred to you through your own trust with all costs and rental taken care of by the US company. Properties start around $100K AUD and cannot be mortgaged there.
Have a great Xmas season everyone and look forward to staying in touch in the New Year.
Take care,
Michael Murray