Wednesday, 31 October 2012

ATO determines that developer of 22 lot subdivision does not have to register for GST

ATO determines that developer of 22 lot subdivision does not have to register for GST

Cooper Grace Ward has recently received a favourable private ruling from the ATO in relation to a substantial land subdivision.
The client owns 52 acres of residential land and intends to subdivide the property into 22 allotments.
The ATO ruled that:
  • the project did not constitute an enterprise; and
  • the client will not have to pay GST on the sale proceeds.
In making its decision, the ATO was clearly influenced by Miscellaneous Taxation Ruling MT2006/1 and cases such as Statham and Anor v Federal Commissioner of Taxation and Casimaty v Federal Commissioner of Taxation in relation to whether the taxpayer’s activities amounted to the carrying on of a profit making undertaking or was only the mere realisation of a capital asset.
In deciding that the subdivision of the property was the mere realisation of a capital asset, the ATO considered it was relevant that:
  • the subdivision was an isolated transaction;
  • there was no business organisation involved; 
  • any interest incurred on funds borrowed to finance the subdivision was not claimed as a business expense;
  • the level of development was limited to access roads and infrastructure required to obtain planning approval; and
  • the property was owned for 30 years prior to the decision to subdivide.
While other taxpayers cannot necessarily rely on this ruling, it does indicate that clients who undertake significant subdivision projects that involve a “mere realisation” may not be required to pay GST on sale proceeds.

If you'd like to discuss this legal alert with a member of our team, please call 07 3231 2444.

Tuesday, 30 October 2012

Australia: GST risks for property and investment syndicates

Check and revise your Terms of Trade

Click to ask the author from Cooper Grace Ward a question

Australia: GST risks for property and investment syndicates

03 October 2012
Article by Greg Cahill
Many property and investment syndicates are described as joint ventures but do not actually qualify as joint ventures for tax or GST purposes because of the narrow scope of the definition of joint venture in the legislation.
For tax purposes, most of these 'joint venture' structures are in fact partnerships or, in cases where a nominee holds the syndicate property, may actually constitute a separate trust estate.
If the parties do not understand what sort of 'tax entity' they have created they may trigger unexpected tax and GST outcomes. These risks have been illustrated by two recent decisions.
In Yacoub v Commissioner of Taxation, Mr and Mrs Yacoub entered into a property development 'syndicate agreement' with a third party. The parties referred to their arrangement as a 'syndicate' and there was an express clause in the document that 'no partnership shall exist between the parties'.
The project was unsuccessful and the third party became insolvent as a result.
The syndicate was registered for GST purposes but incorrectly described as a limited partnership.
The Australian Tax Office (ATO) issued a GST assessment for approximately $610,000 representing input tax credits that the syndicate had incorrectly claimed.
Mr and Mrs Yacoub paid 50% of that assessment and argued that was the limit of their liability under the joint venture arrangement.
However, the court held that, notwithstanding the denial of partnership in the agreement, other terms of the document meant there was in fact a general law partnership and the result was that Mr and Mrs Yacoub, as partners, were 100% liable for the GST assessment.
The decision in Wynnum Holdings No. 1 Pty Ltd v Commissioner of Taxation is even more concerning.
That case involved a common syndicate structure where a group of investors formed a syndicate to develop a retirement village and established a company to hold the real estate as a nominee for the syndicate members.
The nominee entity made a claim for input tax credits in relation to the acquisition and development costs of the retirement village but the ATO argued that the nominee could not claim input tax credits because the syndicate (and not the nominee) was carrying on the enterprise.
The Administrative Appeals Tribunal accepted the ATO arguments that the nominee was not carrying on an enterprise and therefore was not entitled to claim input tax credits. It was the syndicate that was carrying on the enterprise and the parties had failed to register the correct entity for GST purposes.

Implications for advisers

Both cases illustrate that advisers establishing syndicated investment structures need to be very clear about exactly what type of structure they have created and must ensure that the correct entity registers and accounts for GST.
Also, advisers who act for existing syndicates should check that the syndicate is correctly registered for GST.
If there is any doubt as to exactly what entity should be registered for GST, taxpayers should consider applying for a private ruling to avoid the prospect of missing out on input tax credits or incurring penalties because the incorrect entity is registered.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to the author.

Monday, 29 October 2012

Government has introduced the Superannuation Legislation Amendment

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Click to ask the author from Hall & Wilcox a question

Australia: Super nest egg - maybe not in one basket!
Taxation & Superannuation Update

30 September 2012
Article by Andrew O'Bryan and Mark Payne
The Government has introduced the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012, which sets out covenants to be included in the governing rules of self managed superannuation funds from 1 July 2013. Section 52B of the Superannuation Industry (Supervision) Act 1993 (SIS Act) largely mirrors the existing covenants in section 52 of the SIS Act. The key addition clarifies the expectation that trustees will regularly review the investment strategy of the fund and the maintenance of reserves (if any).
New section 52C of the SIS Act will insert provisions relating to directors to be included in the governing rules of self managed superannuation funds. This section provides that the covenants applying to trustees in section 52B of the SIS Act also apply to each director of a corporate trustee. These provisions are novel in that obligations are imposed on directors personally, thus piercing the corporate veil and with it, the risk that disgruntled members could bring an action against directors for a breach of the section 52C covenants.
In our view, given each member is a director and required to be active in the management and operation of a self managed superannuation fund, the better approach is not to rely on the trustee-director covenants but to take steps to avoid any potential issues from the outset.
While the members are also the directors, it is not uncommon for family disputes on divorce or death to spill over into the management and operation of the self managed superannuation fund. These provisions are likely to give rise to disagreements without any mechanism for dispute resolution in the self managed superannuation fund context. The outcome is that section 52C will be largely inappropriate and unnecessary for family operated self managed superannuation funds.
It is crucial that members consider how they structure the fund and in particular, whether the next generation should be added to the existing fund or a separate superannuation fund established. While multiple funds will increase administrative expenses, the benefit is avoiding a costly dispute down the track. Disgruntled beneficiaries of self managed superannuation funds do not have the option of bringing a complaint regarding superannuation death benefits to the Superannuation Complaints Tribunal, but instead must bring an often costly and time consuming action in the Supreme Court.
This could be important in a blended family context for example, where Dad would like to leave his superannuation death benefits in the form of an income stream to his second wife for her life and any remaining capital is to be distributed to his children. However, the benefits vest in the second spouse who is generally not bound to receive an income stream, but can elect to take a lump sum payment of the total benefit. In addition, the second spouse is not obliged to leave the remaining capital to the step children or may not be able to as the step-children will no longer be eligible dependants of the second spouse for superannuation purposes on the death of the father.
Another potential issue arises where the step-children are members of the fund and outnumber the second spouse, effectively controlling the operation and management of the fund.
These situations are likely to provide ample ammunition for claims against directors of the corporate trustee. In this instance, maintaining separate funds, preparing binding death benefit nominations and ensuring control of the fund passes to the right person will be important in avoiding disputes.
Directors should consider how they hold their assets, who will control the fund on the death of one or more members and their estate planning more broadly.
The concept of a trustee-director was recommended by the Government's review into the governance, efficiency, structure and operation of Australia's superannuation system headed up by Jeremy Cooper (Cooper Review). In particular, the Cooper Review recommended that the:
SIS Act should be amended to create a distinct new office of 'trustee-director' with all statutory duties (including those which would otherwise be in the Corporations Act) to be fully set out in the SIS Act, along with re-focused duties for trustees.
In the Cooper Review 'Super System Review: Final Report' (Final Report), the Cooper Review panel noted the:
value in creating a distinct new office under statute, that of 'trustee-director'. The duties, powers and standards required of this office would be recorded clearly in the SIS Act and nowhere else. These statutory duties would enhance, expand and clarify the duties set out in section 52(2) of the SIS Act as well as appropriately adapt the chapter 2D directors' duties from the Corporations Act. The identification and management of conflicts of interest and of duties are a particular priority. Though conflicts are covered under the general law pertaining to trustees, it is clear from the Review's analysis that there is a need for greater clarity of what is required of superannuation fund trustees and trustee-directors in this regard.1
In light of the new obligations imposed on the directors of corporate trustees, it is an opportune time for members to consider the structure of their fund and how the fund is being operated and maintained. For example, have the members recently reviewed the fund deed and the investment strategy? Does the investment strategy deal with risk and return, liquidity, diversity and the cash flow requirements of the fund, including paying benefits to members?
Have members considered who will receive their superannuation death benefits, are enduring powers of attorney are in place if members lose capacity and have mechanisms been put in place to pass control of the fund? Are the decisions of the trustee being recorded and are the resolutions kept in a secure location with the fund deed and any binding death benefit nominations?
Putting in place strategies to address these questions will go a long way in preventing disputes and potential claims against directors from disgruntled members.

Investment strategy and insurance

The Government has introduced the Superannuation Industry (Supervision) Amendment Regulation 2012 (No 2), which amends the Superannuation Industry (Supervision) Regulations 1994 in three key respects:
  1. a trustee is required to consider whether the trustee should hold a contract of insurance that provides insurance cover on one or more members as part of the fund's investment strategy. This is particularly important where a substantial proportion of the fund's assets are illiquid, such as the business premises;
  2. a trustee is required to keep the fund assets separate from any assets held by the trustee personally or from any assets of an employer-sponsor or an associate of an employer-sponsor; and
  3. for the 2013 income year and onwards, the trustee must value assets at market value when preparing the fund's accounts and statements.
These requirements are now operating requirements for trustees and can be enforced by the Commissioner of Taxation.
The amendments are a direct response to the recommendations of the Cooper Review into superannuation and the Government's Stronger Super reforms.
The Explanatory Memorandum to the amending act explains that the valuation methods used by trustees, such as historical valuations, impact on members' ability to ascertain their current superannuation benefits.
'Market value' is defined in section 10(1) of the SIS Act as the amount a willing buyer could reasonably be expected to pay to acquire the asset from a willing seller if the following assumptions were made:
  1. the buyer and seller dealt with each other at arm's length in relation to the sale;
  2. the sale occurred after the proper marketing of the asset; and
  3. the buyer and seller acted knowledgeably and prudently in relation to the sale.
  4. The valuation should be based on objective and supportable data.
A valuation will be required from a qualified independent valuer where the trustee invests in collectibles and personal use assets and is selling the asset to a related party. A valuation from a qualified independent valuer is also recommended where the asset comprises a significant proportion of the fund's value.
In other circumstances, the valuation should be based on objective and quantifiable data, such as an appraisal from a licensed real estate agent for property. Listed securities should generally be valued as at the closing price to determine their market value.
The requirement that assets be transferred on market where an underlying market exists is currently not law, but is expected to apply from 1 July 2013 subject to the Commissioner of Taxation ensuring that the provisions do not contravene the prohibition on 'wash sales' in the Corporations Act 2001. We will keep you updated on the progress of this proposed amendment.
1 The Cooper Review 'Super System Review: Final Report – Part One: Overview and Recommendations', Chapter 2 at 5.2: Trustee Governance at page 2
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to the author.

Sunday, 28 October 2012

QLD Buying property in Queensland?: Some important recent changes to be aware of

Click to ask the author from Barry.Nilsson. Lawyers a question

Australia: Buying property in Queensland?: Some important recent changes to be aware of

03 October 2012
Article by Tenniele Horton
The Fiscal Repair Amendment Act 2012 was passed by the Queensland Government on 21 September 2012. It amends the Duties Act 2001 and the First Home Owner Grant Act 2000.

Changes to the First Home Owner Grant Act

Significant changes have been made to the first home owner's grant. For contracts dated on or after 12 September 2012, the grant has increased to $15,000, but is now only available for new homes. A new home is a home that has not been previously occupied or sold as a place of residence or is a substantially renovated home (in certain circumstances). The current eligibility requirements continue to apply.
First home buyers purchasing an existing home will be eligible for the $7,000 first home owner's grant if the contract is signed and dated before 11 October 2012.

Changes to the Duties Act

The rate of transfer duty payable on dutiable transactions has changed. The transfer duty rate for values up to $1,000,000 remains at 4.5%. For values over $1,000,000, the transfer duty rate has increased to 5.75%. This change is effective from 21 September 2012.

How will the amendments affect property buyers?

If you are purchasing your first home, unless it is a new home or (in the case of an existing home) the contract is signed before 11 October 2012, you will not be eligible to receive the first home owner's grant. You may still be eligible for transfer duty concessions.
If you are involved in a dutiable transaction with a document date of 21 September 2012 or later and for a consideration of more than $1,000,000, the applicable transfer duty rate is 5.75%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to the author.

Saturday, 27 October 2012

QLD Repeal of sustainability declarations reduces red tape for property sales

QLD Repeal of sustainability declarations reduces red tape for property sales

04 July 2012
Article by Kim Teague

The recent passing of the Treasury (Cost of Living) and other Legislation Amendment Act 2012 (Qld) spells the end of mandatory sustainability declarations for sellers of residential property.
While the Bill was introduced to Parliament in May 2012, the provisions came into effect on Wednesday 27 June 2012.
The Act amends the Building Act 1975 (Qld) and the Property Agents and Motor Dealers Act 2000 (Qld) by removing most provisions relating to sustainability declarations.
The Act removes all requirements for both sellers and real estate agents to provide sustainability declarations to potential buyers of residential property.

A ‘sustainability declaration’ is a compulsory checklist that the seller must currently complete identifying to potential buyers the property’s environmental and social sustainability features in key areas – energy, water, and access/safety. For example, the sustainability declaration form asks the seller to provide information, to the best of his or her knowledge and ability, about the presence of solar hot water, photovoltaic solar panels and ceiling insulation. Failing to provide a sustainability declaration attracts a fine. 

It is important to note that there are transitional provisions that ensure that buyers who incur loss through a false or misleading sustainability declaration prepared prior to the amendments coming into force will still be able to seek compensation from a seller.

The amendments make it clear that the buyer still has no right to terminate a contract for the publishing or giving of sustainability declarations by a seller that are false or misleading or incomplete.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to the author. 

Friday, 26 October 2012


A good friend of mine started working with this company and she was really impressed.
I looked into what they do and was also very impressed with what looks like a leader in this industry.
I also found the video below an excellent account of 


Don't forget that being an active investor that demands good deals allows me to share this information with you and so I included an email from Bec with an investor deal for reader too...

If you can't see Video Below then click the TITLE link the text is at top of page in Blue and you will go to the website and be able to watch it direct!!

Hi guys, its Rebecca here from Positive Renovations!
Please watch our webinar to learn how to make money from a Granny Flat property.
We can help you turn your property into a high yielding investment, with our investors regularly achieving yields of 9% - 15%. 
Ask Jason how to find you a suitable Granny Flat property!

Please contact me on 02 8014 6113, if you are interested in this positive cash flow investment strategy.
Mention you have seen this here on Jason's blog and receive a special offer with the purchase of a granny flat package. 


Thursday, 25 October 2012

Subdivision can make you money, but there is a lot of potential for costly mistakes

Subdivision can make you money, but there is a lot of potential for costly mistakes

By Jo Chivers

Jo Chivers is director of Property Bloom, which manages property development.
Leading Property Developer in the Hunter Region

Thursday, 22 March 2012

I met with Danielle this week for a coffee.
 Danielle is a part-time town planner and mum to three kids.  I’d met Danielle when she’d asked me about helping her with a medium-density development.
Then, through some unfortunate circumstances Danielle found herself a single mum.  She couldn’t finance a larger development.  But she used her experience and prowess in understanding the planning process to make herself a cool $70,000 profit from a simple two lot subdivision.

Danielle purchased a large lot in a new release of a big, well-known development in the Hunter region of NSW.  My first reaction was, “You can’t buy a lot in a new release and then subdivide it, as there are restrictions under the 88B Instrument in the contract”.  A Section 88B Instrument is the part of a deposited plan that upon registration can put certain restrictions on the land.

You would assume a large developer would protect the right for someone to come in and then subdivide its lots, especially in a new, upmarket release.  But Danielle went through the massive contract with a fine-tooth comb, and with her ability to read the local environment plan and development control play and understand what the council would allow, and what she was legally permitted to do, she went for it.

There was one hiccup when the town planner managing her development application started to question it.  But as she’d had no opposition from the vendor, the original developer or her neighbours, she was able to talk her way around this.  Once approved, she paid for the necessary works and then soon sold off both smaller lots and made her profit.  Go girl!  So I thought I’d explain to you more detail about subdivision. Because although it worked out well for Danielle, it can be costly and not so rewarding if not managed the right way.

Subdivision is one of the many strategies you can use to develop property.  It involves converting one piece of land or existing dwellings into several.

Raw land subdivision entails legally and physically converting raw, undeveloped land into developed land so that one or more buildings – residential, commercial or industrial – can be constructed.  As you will be changing the land’s usage and appearance, for example perhaps from a rural rezoned paddock into a residential land subdivision, you’ll also be building the infrastructure required such as roads, paths, drainage systems, water, sewerage and perhaps even public utilities such as a park.

You can also subdivide developed land (much more easily) by simply splitting a block in half.
Subdivision of existing buildings is the conversion of a single title to multiple titles. For instance, a block of 10 units on a single title –often referred to as units “in one line” – can be converted into individual titles such a strata title. This is a great way to add value to the properties and allows you to sell them off individually.

Subdivision is a great development strategy for the current market conditions.  It gives you flexibility to play is safe and sell off a newly created piece of land to reduce your loan, or to hold and add value to the property by registering the new lots and holding or further developing them.
The objective here is to have a creative outlook while searching for potential subdivision sites, as it is this creativity that can determine the success of the development.

So when would you subdivide?
An investor might buy a dwelling that is on a large piece of land, where he or she can renovate a house and then subdivide, or perhaps a home owner living on a potential development site where subdivision may be permissible. The site will, however, need to meet council regulations.  The first question you need to ask the council is, “What is the minimum lot size?”  You can find this out from your council’s Development Control Plan for Subdivision and their guidelines.  The minimum lot size will vary from council to council and from different zonings. For instance, the residential minimum lot size will be smaller than the rural zoned land size.  One council I work with has a residential minimum lot size is 450 square metres.  So we can subdivide a 900sqm corner block into two lots. However, if we had a 900-square-metre piece of land that was not on a corner, then we could not subdivide this, as we also need to allow for a driveway to access the back lot and the area needed for the driveway is in addition to the minimum 450 square metres.  So we would need a block of land approximately 1,100 square metres in size to be able to subdivide and allow for our access handle.   Another type of property to look for is land with two street frontages, so if it is 900 square metres in size and the minimum lot size is 450 square metres you can literally cut it in half and each lot will have its own street frontage.

Different types of subdivision
When looking to develop with subdivision, it’s important you understand the different types of subdivisions. Getting professional advice will help you to make the best decision for your site and also which potential purchase will make the process through council the smoothest.
Strata subdivision – Dividing a property into separate units, apartments or villas.  Strata is land title based on the horizontal division of air space and may involve common areas shared by each title holder and usually managed by a strata manager.
Torrens subdivision – Dividing one land lot into two or more separate land titles. This form of subdivision gives the owner complete autonomy with their land as they don’t have to answer to the strata manager or adhere to certain strata rules and regulations.
Community subdivision – A development with common property such as roads may be used by all residents.

The figures
When budgeting for your subdivision you’ll need to start with a realistic target for how much the completed development will be worth, and then subtract costs to calculate profitability. It’s important to  run a feasibility analysis on the subdivision (covered in detail in last week’s article) including possible costs for stamp duty, legal fees, surveyor services, council application and developer charges, civil works and service connections such as gas electricity and water.
Make sure you also discuss your subdivision strategy with an accountant and understand the possible tax and GST implications if you are planning to sell.  You will also need to estimate your holding costs  such as interest on your loan and rates.  This can be a real drain on finances if the process drags out and you are not getting any income from the land to help offset your holding costs, so time is money in this type of development.  Try negotiating long settlement periods with permission to lodge a DA from the vendor or buy under an option.

Getting the location right can either make or break your development success. Research is important here to ensure you are building a property where people in that area want to live. You have to totally remove yourself from the development, as you won’t be living in it, your target market will be.
Inner cities are limited with the availability of land, so in this case strata division is being created through developments.  Looking up to two hours outside the city allows you to be more creative in your development, plus you can usually create a Torrens subdivision. There may also be more room for growth in the outskirts, especially if there is some infrastructure taking place in that area.

Choosing the right property
  • The first item you need to properly assess a potential subdivision site is a survey. It’s amazing how many sales contracts I review that do not have a survey.  So you may need to pay for this before exchanging as you need to be sure of the land size and whether there are any easements affecting it.
  • The next item I always ask for is the sewer diagram. You need to know where the sewer is located and if it is actually feasible based on the slope of the land, to cost effectively extend it to service a new lot.
  • You need to check the slope of the site for drainage issues.
  • Check the aspect of the site and think ahead of where any new dwellings will sit to take advantage of the aspect.
  • Research the zoning regulations and read council’s subdivision guidelines.
  • Compare market value – is vacant land in demand?
  • Check service connections – is there sewer available in the area, is there an electricity source close by?
  • Corner blocks are good for your first subdivision
  • Structure of property – this is important if you are developing a strata division as the building will need to be structurally sound to handle the requirements such as firewalls between units.
  • Have your solicitor check for restrictive covenants or easements. You may find land in a new estate has a covenant over it that does not allow for further subdivision.

DA approval
Getting a surveyor to manage your subdivision DA can save you a lot of time.  If you’re researching a new area, the first place to start would be the local surveyor. They can give you advice on the subdivision process and cost indications. You need to use a surveyor to prepare your subdivision plan.
Once you have abided by the council’s regulations, it is then the residents you may need to win over. Generally if the land you’re subdividing meets zoning requirements and you comply with the subdivision development control plan then there should be little your neighbours can do about your subdivision, however it is always a nice gesture to talk to them personally about your plans.
I always look at the best way to subdivide as part of our development process, the way that will be most cost effective and not hold up the development process, and we have found in many instances it may not be the most obvious way.  What may look like a simple subdivision can turn into months and months of complicated work.  The service connections, plumbing and civil works alone can really blow out a budget, so it’s important to understand the entire process before you embark on your first subdivision.  I’d recommend you start with a simple two-lot subdivision.
There are many more things to consider when planning a land or building subdivision, so make sure you engage professionals to assist you if you’re a beginner.  A development project manager will be able to work with you on every stage of the process and you’ll be amazed at how much you learn along the way and like Danielle, you could find yourself making a nice profit for your efforts.
Jo Chivers is director of Property Bloom, which manages property development.

Wednesday, 24 October 2012

This property here reminds me of my first deal.... Exactly the same $70k EQUITY profit easy.

"If viewing on email click Blue link above to view missing pictures on web"

This property here reminds me of my first deal Exactly the same $70k EQUITY profit easy.
Town has a Hospital - lots of Businesses, Nice Schools and Sporting Fields...

This property here reminds me of my first deal.

Cheap country house. Easy negotiate price.
I would try and .......

Do it up cheaply!
Nothing special just clean and repair with a cheap bathroom kitchen.

Rent it out positive geared.
Sub Divide Block.
Because ....
The other side is actually a really great street, excellent neighbours.

Put a Removable house on the sub divided block and.....
then rent out both houses positive.

ok $70k - $100 revalue AND POSITIVE INCOME
For under $70k buy thats ok,
then subdivide and put the removable house stumped up
on the spare block and revalue while still leaving options.

Well first you have to get it off the market.
I reckon its worth $30 -$50 and reckon they would take that.
I have not enquired about it so you might have to try your self.

Pictures below

"If viewing on email click Blue text link above top of page  to view missing via email then it takes you to the web"




Ok so RPdata is saying this one is for sale since may no takers at 80k and it is dropping
look below 
15 Jun 2012current $70,000

19 Oct 12 Normal Sale 70000
05 Oct 12 Normal Sale 90000
15 Sep 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
25 Aug 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
11 Aug 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
28 Jul 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
14 Jul 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
15 Jun 12 Normal Sale 90000 Charles L King & Co - Cohuna Colin Ibbs/ Rohan Ibbs
so thats why I offer $30k for this one run down house and I can prove why?

NOW THE OTHER HOUSES FOR SALE - not on same street




I am not saying this is the perfect deal.

1. DO HEAPS MORE DUE DILIGENCE , rent demand, possible value, loan possibility etc.
ring council. Even if you cant sub divide you can dual occ and still get two incomes?


If 36 on the same street is 60-70k 
I want it for Half... Because I have to make it liveable.... then how bout I get you as the agent to
rent it with you 
Next question is how much rent will WE get...If I do it up ....???
WIN WIN he sells a run  down property ...only I am prepared to do it up and make another rental.

Remember I used and RPDATA to get this information.
See how good both tools are.....its all in the TOOLS....and teachings ...Thanks mentors...
Want RPDATA email me for great deal.

p.s again I have not rung up about this deal.....just showing you where I start from..

Tuesday, 23 October 2012


"If viewing on email click Blue link above to view missing pictures on web"


Tenants feel some rental pressure ease

Residential rental vacancy rates have remained tight across Queensland, according to the latest Real Estate Institute of Queensland (REIQ) data.

But bucking the trend was the vacancy rate in Mackay, increasing from 1.7% in June to 4% in September. A vacancy rate of 3% is considered to be the equilibrium point of supply and demand.

Sally Richards, Mackay zone chairwoman for the Real Estate Institute of Queensland and principal of Elders Real Estate Mackay, said agents had noticed more properties available at the moment.

"This happened really quickly though, and has been brought on by job transfers, loss of jobs and uncertainty in the mining industry," she said.

"In the next couple of months things should return to normal though, once a few new projects start up," Ms Richards said.

Ms Richards said with the low interest rates now was the time to be buying.

Findings from the Institute's September Residential Rental Vacancy Rate Survey, compiled from information and data by REIQ accredited agents, showed most major regions posting vacancy rates of 2.5% or less in September.

According to local REIQ agents, the cancellation of projects in the mining industry had immediately carried over into the rental market.

The cancellation of leases due to the relocation of workers, newly-constructed properties becoming available, and some investors moving into their rentals have resulted in the vacancy rate increasing markedly. Higher-end rents are also reportedly coming down.

REIQ chief executive Anton Kardash said statewide vacancy rates were continuing to trend into under supply territory as investor activity slowly swung back into life.


Devereux Creek looks like checking out

Monday, 22 October 2012

QLD MINING Confident Arrow Energy moves into coal-seam top gear

Confident Arrow Energy moves into coal-seam top gear

TONY MOORE October 20, 2012

Confident Arrow Energy moves into coal-seam top gear

TONY MOORE October 20, 2012 Arrow Vice President Exploration Tony Knight and Arrow CEO Andrew Faulkner at an Arrow dam in Moranbah. Arrow Vice President 

Exploration Tony Knight and Arrow CEO Andrew Faulkner at an Arrow dam in Moranbah. Photo: Supplied
In Moranbah, about 200 kilometres inland from Mackay, the fourth of the Australian coal seam joint-venture companies is shifting its plans to export coal seam gas to emerging world markets into top gear.

Moranbah, with a population of 7300 — of which about one-third are fly-in, fly-out workers — sits in typical cattle grazing country, surrounded by brigalow scrub.
It is on the western edge of the Bowen coal basin and
home to the Goonyella coalmine and former rugby league stars Josh Hannay, Travis Norton and Clinton Schifcofske. Contrary to earlier reports, the town's main shopping centre is not characterised by empty shops and lonely, discouraged people.

However, the housing heat has largely gone off the boil for mine staff, many of whom work two weeks on and two weeks off. Seven years ago, mining companies were subsidising the $2500-a-week rents for the scarce houses as the population boomed. Today mine workers can find three-bedroom houses for between $500 and $1000 a week.

It is from here that Arrow Energy, formed in 1997 to explore for coal seam gas in the Northern Territory, will push ahead with its plan to build a $20 billion export processing facility to liquefy natural gas and ship it to the world.

Since August 2010, Arrow has been wholly owned by two global energy giants: Royal Dutch Shell and PetroChina. Arrow has major reserves in Queensland's Surat and Bowen basins.
Its joint venture company rivals Santos/Petronas, Origin/Australia Pacific and British Gas/Queensland Gas Corporation are further down the complex project path to building pipelines to a liquification plant at Curtis Island, near Gladstone, to cool the natural gas to a liquid so it can be shipped. Arrow does not mind finishing the race fourth.

In Moranbah on Thursday, Arrow chief executive Andrew Faulkner gave the strongest indication to date that the company was planning to go it alone and ship gas from 8000 planned wells from its own plant.

Faulkner said rising drilling and exploration costs were a fact of life for mining companies approaching a final investment decision from shareholders. For Arrow, that decision would be made in late 2013, he said, and the shareholders were global companies.
The former Shell vice-president said he remained confident about Arrow's plan to export from its own Curtis Island facilities.

"And I guess the only credible fact I can give you is that the shareholders will spend about a $1 billion a year," he said. "Now we are pre-FID, but that sure doesn't mean that we are not spending money and standing still. And our budget for the year is larger than that. So again, assuming that they approve next year's budget — and I don't doubt that — there is evidence of two shareholders that will spend $5 billion acquiring Arrow Energy.

"And roughly $3 billion over the last couple of years and next year maturing the project. Clearly they have high expectations that this is the right way to spend their money."
Rising production costs had not changed the minds of Arrow's shareholders, Faulkner said, standing beside a gas wellhead that has provided 400 cubic metres of gas an hour since 2004. Concentrating purely on domestic gas supply — Arrow provides 20 per cent of Queensland's gas needs — is not a long-term answer.

"The domestic demand in the relative sense is extremely small," Faulkner said.
Contracts with Townsville Power Station, to Daandine, Braemer and Kogan North power stations and to Queensland Nickel are dwarfed by the potential for natural gas for export, he said.
Arrow's initial advice statement for the pipeline indicates that Australia's LNG exports are predicted to grow from 19 million tonnes in 2010-11 to 41 million tonnes by 2015-16, according to Australian government statistics. New markets are emerging in India, Thailand, Taiwan and Singapore.
Faulkner said some Arrow gas would be sold to competitors but only before Arrow finalised its own Curtis Island plant.

"I would emphasise that our base case, which remains unchanged, is for our own project ..."
Arrow estimates it has about 48,000 petajoules of gas in its Bowen and Surat basins. It is possible to provide roughly all the electricity for a city of 1 million for three weeks on one petajoule of natural gas.

Arrow has submitted the environmental impact statement for its Bowen Gas Project to the Queensland government and is running stakeholder and community sessions.

Tony Knight, the company's vice-president of exploration, spoke with the Gasfields Commission recently about Arrow's plans. He and Faulkner know companies need to find a solution to the salty water waste that comes from coal seam gas mining.
Methane trapped in coal seams is captured when water is pumped into the seams under pressure. In some coal seams, hydraulic fracturing, or fracking, "excites" the seam and increases the flow of gas in the water that comes from the seam. Fracking means pumping water and sand, and in some cases chemicals, into the coal seam. The concern for farmers is that it could impact on their groundwater supplies.

The Queensland Water Commission has ordered drilling companies to purify the water they extract, which they in turn offer to local councils, farmers and other companies. Santos has already developed a recycling scheme for its coal seam gas water.

Faulkner says while Arrow does not frack coal seams in the Bowen’s Moranbah coal seam because of its horizontal drilling technique, it does frack coal seams in the Bowen Basin’s nearby Fort Cooper and Rangal coal reserves.

It has begun fracking 30 wells in the nearby Fort Cooper coal reserve on a trial basis, where it will inject sand and “guar gum” , a naturally-ocurring substance that forms a gel, to accelerate the methane gas release.

It says it does not frack wells in the Surat Basin because of the basin’s geology.
In February, conservationists questioned the company’s fracking chemicals at exploration sites near Beaudesert and the Logan River.
The company is also exploring ways of using the salty brine from its eventual 8000 wells for dust suppression, irrigation and coal washing. The brine is classed as a controlled waste by the Department of Environment and Resource Management, but testing to allow it to be reused is under way.

Isaac Regional Council, which covers 58,000 square kilometres including the towns of Clermont, and Middlemount as well as Moranbah, has asked to be able to use the brine after it is treated.
"You will eventually have a portfolio of solutions," Faulkner said. Water treatment is a sizeable component of Arrow's costs, he said. He sees tremendous opportunity for Arrow in this area.
"So it is actually a tremendous opportunity to use a resource that otherwise wouldn't be usable to a populace that generally cries out for water in some form or another. 

"If we can get this one right then that is a tremendous attribute of the industry rather than a threat from the industry."
Arrow cleans the brine - with about one-eighth of the salt concentrate of seawater — through a reverse osmosis system. The water is being set aside in a "treated water" dam while the company waits for advice from the state government on how it can be sold to third parties.
That testing is being negotiated now, Faulkner said. After further testing, the water could even be used for drinking.

Saturday, 20 October 2012

QLD - Old plans scrapped, new plans released for Gracemere


Old plans scrapped, new plans released for Gracemere.

Gracemere Industrial Access project, project manager Charlie Lloyd-Jones with Rockhampton Regional Council Mayor Margaret Strelow. Photo: Chris Ison / The Morning Bulletin
Gracemere Industrial Access project, project manager Charlie Lloyd-Jones with Rockhampton Regional Council Mayor Margaret Strelow. Photo: Chris Ison / The Morning Bulletin Chris Ison
CONTROVERSIAL plans to extend Gracemere's industrial area have been scrapped and a new plan will be taken to the public in a pre-consultation period, starting today.
The new plan means only nine landholders will have their properties rezoned industrial - all along Oxley St - and previously zoned industrial areas will either be zoned light industrial or medium industrial.
Yesterday, Rockhampton Regional Council voted unanimously to release the newly developed rezoning map and to hold the pre-consultation period.
The council also voted move forward with a $3.2 million plan to upgrade Somerset Rd between Stewart St and the Gracemere Overpass.
It also voted to move forward with plans to lay sewerage and water infrastructure under the overpass, to be connected in the future to industrial sites west of the overpass.
The unusual move to hold a preconsultation period means council is holding an extra consultation period.
Normally, council sends the new plan straight to Minister for State Development, Infrastructure and Planning Jeff Seeney to check any impacts on State Government owned land, then it would go into the official consultation period before the plan is sent to the minister for approval.
The extra consultation will include a public meeting to be held on October 29 at Gracemere Community Hall at 6.30pm.
Rockhampton Mayor Margaret Strelow said the money for the sewerage and water infrastructure was in the budget but had been put on hold until council felt there was strong enough investment/developer interest.
"Today is about announcing the major amendment (to the Fitzroy Shire Planning Scheme) and releasing it to the public," she said.
Cr Strelow said council had tidied up as much as possible the zoning in the area, which had mismatched uses of land.
"Nearly all of Somerset Rd wanted to be zoned industrial but we are not going that way because there were a few that were really against it," she said.
She said announcing the water and sewerage works was about council showing its committment to creating the industrial area.
"All the developer interest so far is in the major area around the bypass," Cr Strelow explained.
Servicing Maintenance and Welding Group workshop manager Scott Stevens said council believed the commitment shown will be a significant catalyst in the future growth of the Gracemere Industrial Area.
"The resolutions build confidence in the future growth of the region and are crucial for business like ours to continue re-investing and staying in the region, and also attract other investors," he said.
Cr Strelow said Cr Ellen Smith and herself had met with 30 property owners and conducted 12 over-phone-interviews in developing this new plan.
Gracmere Industrial Area
New plan, released today, has nine properties changing from rural/village to industrial.
Some previously zoned industrial parcals will be more defined under new plan.
Council will now carry out pre-consultation on new plan before sending it to State Planning Minister.
Council also approved to move forward with sewerage and water works, plus upgrading of Somerset Rd. 

Friday, 19 October 2012

Brisbane Airport Corporation’s new Property Development Master Plan


BAC unveils plan for airport property growth

Brisbane Airport Corporation’s new Property Development Master Plan will focus on creating a vibrant commercial hub from Airport Village to the Domestic Terminal and beyond within the next 10 years.
The unveiling of a 50 year vision for property development within BAC’s 2,700 hectares identifies development concentrated around five key nodes, as part of a highly connected, 24 hour aviation, trade and commerce hub.

Chief Executive Officer and Managing Director Julieanne Alroe said the plan presents a clear vision for the airport to become a major commercial centre for business and leisure that supports the economic and cultural growth of Brisbane and Queensland, and acknowledges the important role it plays in Brisbane’s transformation into a new world city.

“Our aim is to create an exciting commercial and transport hub with a strong sense of place that complements the CBD, celebrates Queensland’s character and is valued as a key part of Brisbane’s urban fabric,”
 Ms Alroe said.
“We want to enhance Brisbane Airport’s primary aviation function with commercial and lifestyle offerings that create a key destination in its own right.

“Brisbane Airport can be Queensland’s ultimate transport oriented development, taking full advantage of its unique position and unparalleled connectivity to the domestic and international terminals, major transport networks and the CBD just 8km away,” she said.

The overall Property Development Master Plan sets out a diverse range of development opportunities, foreseeing the creation of upwards of 25 new buildings over the next five years. This includes hotels, commercial space and some retail, as well as industrial and mixed industry and business uses.

690052 brisbane airport future1 BAC unveils plan for airport property growth

Artist's impression of airport central development

A longer term forecast predicts the airport-based workforce to more than double in the next 20 years from its current level of 19,000 (across 420 businesses) to over 50,000.
BAC’s specialist property division, BNE Property, will guide the plan’s delivery to market, targeting resources, tourism, aviation and logistics businesses and related service industries as early partners and investors.

BNE Property General Manager Renaye Peters said initial delivery will focus on creating development and investment in a vibrant central spine (Airport Central) and she expects to be able to confirm a significant development project for this area in the coming months. Commercial interest is also strong.

“We are currently in active discussions with a hotel developer and will shortly commence a tenant drive for a significant commercial development at Airport Central near the Domestic Terminal.
“We are also at concept design stage for a new general aviation charter facility to be located at Airport North to service the growing fly-in-fly-out (FIFO) demand from the booming resources sector,” Ms Peters said.

BAC is committed to airport investment. To date (including the FY12 forecast), BAC has invested $1.7 billion at Brisbane Airport and plans to spend a further $2.9 billion over the next 10 years.

“At only 12 years into our 99 year lease, BAC is here for the long term. With planning control resting with BAC and the Commonwealth, this gives confidence to investors and those wishing to relocate their businesses here that there will be a long term commitment to the development and maintenance of high quality public realm and infrastructure,” Ms Peters said.