Ballina and property price developments
April 2007 - Interest rates, Ballina, Casino, non-property option, property prices
May 2007 - New loan option, NSW country and Brisbane prices
June 2007 - Loans, Navra, Property Residex
July 2007 - Hot properties, Sub prime mortgaging, Housing affordability
August 2007 - Property vs Shares, Local market, Citibank offer
September 2007 - Overview, Loans, rates and the whole d... thing!, Properties
October 2007 - Overview, Byron Bay, Ocean Shores, October Property Hot List
November 2007 - Gazumping, The Rate Dance, MO & CT, Navra, Property
December 2007 - Property valuations, Replacement value, Equity finance mortgage
Last newsletter 2007 - Byron Bay market graph, beach front & other properties
January 2008 - Mood of Moment, post crash summary, Gossip
March 2008 - March Musings, New Developments
April1 2008 - War Stories, Property Punting, Interest Rates
May 2008 - Only in Byron, Lo Docs and Tax
June 2008 - Debt Consolodation, signs of weakness
July 2008 - Property Punting, Byron Bay Holiday Rental, Housing Affordability
August 2008 - The Wash Up, Signs of Weakness, Growth area, Debt consolidation
September 2008 - Take stock and share the pain, Property, Elections and Finance
Welcome to BPS Newsletter # 9 - May 2007
I have been busy for the last few weeks with clients looking to start a health retreat/fasting centre. I spent time revisiting the various LEP's (Local Environment Plans) and the maze of zoning regulations required to do anything in this shire. Even something low key and suitable to this shire like a small B&B that offers cleansing, massage, etc is a very complex process. Unfortunately it seems the only people who succeed with any development here are the bigger developers with deep pockets. Many people are looking closely at anything just over our borders where the process is simpler. As in a previous newsletter I highlight the area around Burringbar, Moobal, Yurong as worthy of close investigation. In a future newsletter I will look at the outcomes around what to expect with the state based LEP that the shire council needs to come on line with in March 2009. Word on the street is that our council will not be ready to implement these changes.
NEW LOAN OPTION
A new mortgage loan option has been launched that I am happy to offer to existing or new clients. Its the "TIME OUT" home loan. It allows you to pay only 3.99% (almost half of the variable rate of 7.49%) for up to 2 years. This shortfall is then capitalised onto the loan amount at the end of the two years. It is ideal for:
* new owner occupiers that have stretched for the deposit and need some breathing space
* people with an existing loan who are having trouble meeting their existing payments for various reasons
* investors or renovators wanting to minimise their holding costs (there is exit fees on this loan however)
Give me a call and I can give you more details.
RESIDEX BEST RENT REPORT
I have a copy of the most recent Residex Rental Report released in April. I like Residex information as they are one of the more thorough reliable market reporters.
This report gives the Australian post codes that are predicted to have at least a 5% capital gain as well as achieving at least a 5% rental return. It looks at areas that will return at least 10% annually over the next 5 years. I will only supply a few of those suburbs that are within our region, including South East Queensland are:
NSW Country:
The only NSW area north of Sydney and the Tweed border was:
LIGHTNING RIDGE 2834
Expected Growth - 5%
Average Rental - 6.84%
Median House price - $126,500
Lightning Ridge is an outback mining town famous for its opals. It is supported by a strong and growing tourism market. This was the only post code that made the hit list north of Sydney and south of the border.
Brisbane:
CANNON HILL 4170
Expected Growth - 8%
Average Rental - 5.02%
Median House price - $380,500
While it did give some reasons why it singled out Cannon Hill, which is 10 klms east of Brisbane CBD, and not other Brisbane suburbs is a mystery to me. Wynum, Manly and other bay side suburbs are also interesting.
Brisbane fringe:
RUSSEL ISLAND 4184
Expected Growth - 11%
Average Rental - 5.41%
Median House price - $187,000
LAMB ISLAND 4184
Expected Growth - 12%
Average Rental - 4.95%
Median House price - $216,000
I used to go sailing around these islands in Moreton Bay when I was a kid. They were sleepy little beach shack places then. Development only started in the 80's and I think there were some shady Queensland style deals done - properties sold off the plan that were under water during king tides, etc. But it may have turned around by now.
There has been talk of a bridge from the mainland for some time. If it does happen, and I believe it will, these properties will increase in value substantially.
JACOBS WELL 4208
Expected Growth - 6%
Average Rental - 4.85%
Median House price - $328,000
ARUNDEL 4214
Expected Growth - 10%
Average Rental - 5.43%
Median House price - $413,000
These are two post codes in the rapidly expanding growth belt between Brisbane and the Gold Coast which will soon be joined. There is a satellite city planned for Coomera on the highway and these small towns will benefit from this spill over.
ROTHWELL 4022
Expected Growth - 11%
Average Rental - 5.26%
Median House price - $328,000
MANGO HILL 4509
Expected Growth - 7%
Average Rental - 4.83%
Median House price - $302,000
DECEPTION BAY 4508
Expected Growth - 8%
Average Rental - 5.18%
Median House price - $302,000
MURUMBA DOWNS 4503
Expected Growth - 13%
Average Rental - 4.69%
Median House price - $344,500
All of these are fringe suburbs about 25 klms north of Brisbane near Redcliffe. They are quite open suburbs near the coast of Deception Bay and can expect strong growth from retirees.
CABOOLTURE 4510
Expected Growth - 6%
Average Rental - 5.53%
Median House price - $251,000
Caboolture is 46 Klms north of Brisbane and tipped to be a regional hub.
Other regional Qld country towns picked for high growth are Regency Downs near Ipswich; Glenvale, a suburb of Toowoomba; Moranbah a mining town 200 klms west of Mackay and Mount Sheridan, a suburb south of Cairns.
I have also been hearing high hopes for Maryborough - a town in Queensland between Harvey Bay and Rockhampton. Harvey Bay has been overdeveloped and is now experiencing negligible growth while Rockhampton is still powering ahead apparently. I will take the time to visit Maryborough soon and will report back. I remember it as a sad little town with not much going for it. For those who have been longer term residents of Byron you may remember our old mayor - Tom Wilson, who is now a byron bay real estate agent.
Finally, I did take some people to the managed fund presentation in Brisbane the other week. They liked what they heard and will doing a follow up with the Brisbane Manager of Navra Financial Services (www.navra.com.au). He is planning to come down for a day and I will host him do a small presentation here in my office. Let me know if you are interested in attending.
That’s all for now - its a great day and I am going surfin'!!!
All the best - talk soon
Michael M Murray
Buyers Agent/Mortgage