November 09
Hi All,
Welcome to the November BPS newsletter.
Yesterday the RBA lifted interest rates by .25% and all the banks followed suit. Predictions are it will be the last one for the year but if high property demand and prices keep rising there may be more next year.
TWO NEW SERVICES
____________________________________________________________
Leasehold on MOs.
It has been talked about for many years and always hit a wall. But Byron Property Search and 123 Loans have finally managed to secure bank finance against Multiple Occupancies. This is big news for for the Rainbow Region as there are somewhere between 250 - 300 Multiple Occupancy Rural Land Sharing Communities spread around Byron, Tweed, Lismore and Kyogle shires.
It does require changing the constitution of most communities and Company Title structures are a lot easier to do than Tenants in Common. If you want to find out more about this new finance option go to this link.
Private Finance
BPS has had some success in completing some out of the box finance deals. We have been able to put together private investors with clients requiring short term finance. If you would like to find out more about either side of this offer - please let us know.
COUNCIL'S WAR ON EVERYTHING!
____________________________________________________________
If nothing else Byron Council deserves some credit for holding firm on the challenging battle lines. Both the Planned Retreat at Belongil and Holiday Letting Zones in Byron town are divisive and complex issues. Both issues have strong arguments on both sides. Unfortunately they will both probably go to the Land and Environment Court or some other legal option. The team with the most money (not council) will win out and the ratepayers will be the ones footing the bill.
We only have ourselves to blame. This shire has been adversarial for so long the only way of getting things done is lawyers at 10 paces. I don't see why protecting the environment comes at the cost of sacrificing community cohesion. There must be a better way of doing things!
BITS AND PIECES
____________________________________________________________
Tallowood Estate
I have had a second look at the Tallowood Estate in Mullumbimby. This green field development has had its fair share of controversy and many people don't think its going to go ahead. I don't agree and I think it will be ready to settle and build before the end of next year. I also did not think it would be a good investment but have changed my mind on that as well. The release of the next stage will be some time off and their will be a price increase in stage 2.
I think they are a good investment and have bought one myself and also good for anyone wanting build buy and hold. The developer is giving $10,000 off the list price (between $240K - $310K) and you can go direct to the developer through BPS.
COMRADES - YOU ARE NOT REVOLTING ENOUGH!
Last months call to arms to help the rental crisis by building Granny Flats created a lot of discussion but not much action. I only got two people who took advantage of a free consultation to inspect their house for Granny Flat options. A lot of people where very keen to support the concept and agreed with the sentiment. I am happy to repeat the offer for another month and happy to talk to anyone wishing to consider the granny flat option.
FHOG CHANGES
The First Home Owners Grant scheme is going to go through some changes next year. "The Rudd Government is announcing today that after December 31, the Commonwealth will allow States and Territories to set a price-cap for recipients of the First Home Owners Grant." It is rumoured to be set at $750,000 for NSW and $1M for Qld. People buying property above that price will not get the FHOG.
I will be back next month with more news and gossip. Don't let the silly season make you goo too silly and don't forget to breathe.
Take care,
Michael Murray