Tuesday, 30 July 2013

WA P i l b a r a P r o p e r t y T o u r


Kick the Red Dirt
Call Keith Daddow:   0428 566 344 mention this iloveproperty.net post to get the prices below.

Keith and I have both worked on information to investors of deal in WA
Macro has a range of products including land and also off the plan developments.
Off the Plan developments gives you basically a turn key package.
If you want to get an off the plan in WA then I suggest that you use the people I know
Macro.
This is not a plug or an add, just simply passing information on from a source in WA that
I have known for many years now and I like the way he takes care of business.
You know have to ask yourself the question.
Would this tour be educational. Answer YES
Will they show me properties to buy off them . Answer YES
Does Macro have a good reputation. Answer YES
Is Keith a cool dude. Answer YES  LOL
Is their an obligation to buy a property Answer No. But they will show you Opportunity.

But seriously many people I know have gone on the tour and I know everyone said they learnt lots. Actually they come back telling me more new things every time they go.
Tell Keith that you read my blog ww.iloveproperty.net and you want the low down on the
best deals he has. Keith know how to take care of investors and the people that asked me and I told them to talk to Keith to get some info have thanked me for the reference.

P i l b a r a   P r o p e r t y   T o u r

Tour Highlights



i Tour of Newman, Karratha, Port Hedland and South Hedland

i Exclusive 90-minute tour of BHP Mount Whaleback Mine Tour

i Take in the natural beauty of Karijini National Park

i Comprehensive update on current Pilbara market condiƟons

i Complete overview of the Pilbara rental market

i Network with other experienced property investors

i Wholesale off-market investment opportunities



Monday, 29 July 2013

QLD Wandoan secures extra water licence for growing population

 Wandoan secures extra water licence for growing population


The Western Downs town of Wandoan will now have enough water for 5,000 people, after the Queensland Government allocated the council an extra water licence.
The proposed Glencore-Xstrata mine and coal seam gas activity have pushed the town's population to about 800.
Water portfolio councillor George Moore says the extra 400 megalitres a year guarantees supply for the town which is totally dependent on underground reserves.
"It will allow us to plan the development of the town of Wandoan with confidence knowing that we do have a secure water supply," he said.
"Basically the Great Artesian Basin is the only alternate water supply and we've been lucky enough to secure an additional allocation."
Cr Moore says the council expects a spike in demand for potable water.
"It is very exciting, we hope to hear back on the one in Miles before Christmas," he said.
"With the Wandoan allocations we're currently servicing an equivalent person, EP, population around seven or eight hundred with the resource industry that's drawing off the town at the moment and with this extra allocation we'll be able to handle up to 5,000."

Sunday, 28 July 2013

Coffs Harbour LANDHOLDERS at West Sapphire, West Korora and Moonee have gained a toehold on the rezoning roundabout after Coffs Harbour City


Council ducks 2009 land rezoning vow

LANDHOLDERS at West Sapphire, West Korora and Moonee will be interested in council discussion to rezone land.
LANDHOLDERS at West Sapphire, West Korora and Moonee will be interested in council discussion to rezone land.
LANDHOLDERS at West Sapphire, West Korora and Moonee have gained a toehold on the rezoning roundabout after Coffs Harbour City councillors voted at Thursday's council meeting to allocate $150,000 in the 2014-15 budget towards a Local Environmental Study for these areas.
The motion was moved by the Deputy Mayor, Cr John Arkan and seconded by Cr Sally Townley.
Cr Keith Rhoades said it set a dangerous precedent to start allocating specific funds so far ahead and the study might cost more than $150,000, but his proposal that the motion be to 'consider the allocation of funds' was unsuccessful.
Sapphire land owners Grenville Duce and Peter Wardman addressed the councillors, saying that Sapphire residents had been waiting for many years to have their land rezoned and had been repeatedly rebuffed and they wanted the council to honour its 2009 undertaking to review the Rural Residential Strategy when one of three trigger points was reached.
The triggers were completion of the Pacific Hwy upgrade; release of the 2011 census data and the year 2014.
Mr Duce said the census data was received by the council 12 months ago.

VIC Lara's west have been given the green light but the developer's


 HUNDREDS of new homes in Lara's west have been given the green light but the developer's plans for a $26 million supermarket have been rejected by the council.
The City of Greater Geelong is preparing to rezone land in the Manzeene Ave area of Lara, to allow for up to 550 residential lots to be created.
However, it has rejected Dacland's bid to build a full-line Woolworths supermarket on the corner of Patullos and O'Hallorans roads, which the proponent claims would support 230 jobs when opened in 2018.
The council has recommended the space be used for other commercial services, such as a hotel, service station or food outlets.
The council is instead supportive of the creation of an activity centre in a neighbouring residential development, known as the Lara West Growth Area.
Along with a retail hub anchored by a supermarket, that proposal includes two primary schools and a senior campus, two community centres, sports fields and an indoor stadium, and an estimated 4000 houses.

Related Coverage

Your Say

"When we built some years ago, we were promised that the population would be no more than 10,000. Then we allowed developers in and we ended up with hundreds more houses. I do feel sorry for people that live in Grand Lakes. Long walk to the shops and the traffic has increased dramatically. You only need to look at the traffic around the proposed new shopping area. Won’t that give people a lot of joy at 3.30pm every day with trains going through, schools finishing for the day and a big supermarket to top it off. A park doesn’t make a town feel rural. A small population makes a town feel rural.That’s why after 30 years or so, I’m moving out. People aren’t gutless Tony Ansett. Just that when I sent you an email a couple of years ago, I found your reply extremely rude and nasty. "
Ex Lara resident
Dacland's Jonathon Fetterplace appealed to the council to support the commercial development, claiming it would quickly reduce spending leakage to other areas, including Werribee.
He said the Lara West Growth Area supermarket was unlikely to be constructed before 2025, with Dacland's $26m proposal to be operational within five years.
Cr Tony Ansett said Dacland's estate, to be called Manzeene Village, fell within the Lara township that was soon to be serviced by Coles and Woolworths stores.
Cr Ansett praised Dacland for retaining about 5000 trees in its estate.
Work has begun on the town centre expansion on Station Lake Rd, which will deliver a full-line Coles and supporting stores and eateries.
The adjacent Woolworths also has plans to more than double the size of its existing complex at The Centreway.

Saturday, 27 July 2013

NSW Pyrmont Rental and price growth to drive more investors to Sydney inner city apartment market


Pyrmont - Rental and price growth to drive more investors to Sydney inner city apartment market: BIS Shrapnel's Angie Zigomanis

By Angie Zigomanis
Wednesday, 24 July 2013
Contrary to perceptions at the start of the apartment construction boom in the mid 1990s, the positive performance of the Pyrmont and inner Sydney apartment market has been driven by various factors that were not immediately apparent at the time:
The rise in overseas student enrolments at Australian universities; globalisation of employment that has resulted in growth in overseas professionals employed in our cities; and changing lifestyle and dwelling preferences  that have seen the younger adult population more willing to live in smaller dwellings closer to employment and entertainment options. 
The result has been a growing population that has a preference for living in inner Sydney apartments, which has been able to sustain apartment occupancy despite the sizeable increase in the apartment stock.
Pyrmont has experienced a fourfold increase in its apartment stock from 2,300 apartments in 1996, to 9,500 apartments by 2013, while still maintaining solid occupancy and positive rent and price growth through this period. 
Although there will continue to be cycles, these drivers are expected to continue to underpin long term demand for inner Sydney apartments in the future.
In the short term the underbuilding of apartments in inner Sydney since the middle of the last decade has resulted in an underlying deficiency of apartments that is not expected to be fully eroded in the near future, despite the solid upturn we are now seeing in new apartment construction. 
The resulting rental growth will continue to attract more investors to the market.
This in turn should drive further solid price growth over the next two to three years, which in turn will drive greater off-the-plan purchases and additional supply. 
After averaging 2,500 apartment completions per annum over 1996/97 to 2005/06, apartment supply has fallen to around 1,600 new apartments per annum over 2006/07 to 2012/13.
While completions have picked up in 2012/13 and we expect them to average 2,800 per annum over the four years to 2016/17, there is still expected to be a small underlying deficiency by the end of this current round of construction.
Angie Zigomanis is senior manager of BIS Shrapnel.

Lowest Price RENT in Pyrmont
Highest Price RENT in Pyrmont

Here are some interesting deals, 

Lets look at executive FURNISHED - to rent 

Lets look at recently SOLD same Building.






Thursday, 25 July 2013

How have the investor magazine hotspots fared two years on?

How have the investor magazine hotspots fared two years on?

reposted from : 
http://www.propertyobserver.com.au/

By Larry Schlesinger
Tuesday, 23 July 2013
Two years ago Property Observer reported that out of the collective number of '100 best suburb to buy' housing hotspots named by investment magazines Your Investment Property and Australian Property Investor, only 21  featured in  both magazines' lists. Analysis of the performance of detached houses in these 21 hotspots reveals that very few are returning anything meaningful to investors while some have seen their median values fall sharply.
There are just four locations that have delivered returns in excess of inflation (around 5% over the past two years).
Property Observer looked at the movement in medians of both RP Data and Australian Property Monitors (APM), just to also see how the two major data providers differed on the same location.
Three of them – Townsville, Gladstone and Chinchilla - are in Queensland and have strong ties to the mining sector.
The fourth is the regional city of Bathurst, around 160 kilometres from Sydney in the NSW Central Tablelands, picked for its affordability and high yields, with RP Data recording a 9.8% rise in median values and APM a 5.2% increase.
Among the worst performers over the past two years have been Melbourne locations including Broadmeadows, St Kilda and Balaclava along with Paddington in Brisbane and Kensington in Adelaide.
Most astute property investors would take a long term view on their investments – indeed some of these non-performers may turn around in the coming years.
However, many investors would expect to see signs of capital growth in so-called hotspots over a two-year period and certainly not the declines recorded in some locations as the tables below show:
Suburbs in bold have achieved capital growth in excess of 5% over the the past two years according to both RP Data and APM:
RP Data figures

Suburb
State
Median house price 2011
Median house price 2013
% change over two years
Hit or miss?
1.
Ainslie
ACT
$711,000
$687,000
-3.3%
MISS
2.
Townsville
Qld
$369,000
$555,000
+50.4%
HIT
3.
Gladstone
Qld
$439,000
$595,000
+35.5%
HIT
4.
Rockhampton
Qld
$192,000
$201,000
+4.6%
HIT
5.
Toowoomba
Qld
$270,000
$270,000
0%
MISS
6.
Chinchilla
Qld
$325,000
$370,000
+13.8%
HIT
7.
Paddington
Qld
$788,000
$745,000
-5.4%
MISS
8.
Dulwich Hill
NSW
$852,000
$850,000
0%
MISS
9.
Tempe
NSW
$713,000
$700,000
-1.8%
MISS
10.
Baulkham Hills
NSW
$621,000
$645,000
+3.8%
HIT
11.
Bathurst
NSW
$273,000
$300,000
+9.8%
HIT
12.
Port Macquarie
NSW
$400,000
$395,000
-1.24%
MISS
13.
Geraldton
WA
$360,000
$375,000
+4.1%
HIT
14.
Broadmeadows
Vic
$380,000
$315,000
-17.1%
MISS
15.
Thornbury
Vic
$718,000
$700,000
-2.5%
MISS
16.
Warrnambool
Vic
$317,000
$313,000
-1.2%
MISS
17.
St Kilda
Vic
$860,000
$707,000
-17.7%
MISS
18.
Brunswick
Vic
$689,000
$640,000
-7.1%
MISS
19.
Balaclava
Vic
$916,000
$715,000
-21.9%
MISS
20.
Port Noarlunga
SA
$365,000
$353,000
-3.2%
MISS
21.
Kensington
SA
$650,000
$595,000
-8.4%
MISS
Source: Australian Property Investor magazine, Your Investment Property magazine, RP Data
APM figures

Suburb
State
Median house price 2011
Median house price 2013
% change over two years
Hit or miss?
1.
Ainslie
ACT
$688,000
$682,000
-0.8%
MISS
2.
Townsville
Qld
$395,000
$439,000
+10.2%
HIT
3.
Gladstone
Qld
$398,000
$480,000
20.6%
HIT
4.
Rockhampton
Qld
$205,000
$196,000
-4.3%
MISS
5.
Toowoomba
Qld
$271,000
$275,000
-1.4%
MISS
6.
Chinchilla
Qld
$277,000
$377,000
36%
HIT
7.
Paddington
Qld
$754,000
$718,000
-4.7%
MISS
8.
Dulwich Hill
NSW
$820,000
$850,000
+3.65%
HIT
9.
Tempe
NSW
$710,000
$714,000
+0.5%
MISS
10.
Baulkham Hills
NSW
$606,000
$630,000
+3.9%
HIT
11.
Bathurst
NSW
$285,000
$300,000
+5.2%
HIT
12.
Port Macquarie
NSW
$392,000
$380,000
-2%
MISS
13.
Geraldton
WA
$372,000
$380,000
+2.1%
MISS
14.
Broadmeadows
Vic
$386,000
$320,000
-20.6%
MISS
15.
Thornbury
Vic
$713,000
$674,000
-5.4%
MISS
16.
Warrnambool
Vic
$310,000
$304,000
-1.9%
MISS
17.
St Kilda
Vic
$822,000
$652,000
-20.6%
MISS
18.
Brunswick
Vic
$686,000
$625,000
-8.8%
MISS
19.
Balaclava
Vic
$868,000
$715,000
-17.6%
MISS
20.
Port Noarlunga
SA
$366,000
$360,000
-1.6%
MISS
21.
Kensington
SA
$530,000
$570,000
+7.5%
HIT
Source: Australian Property Investor magazine, Your Investment Property magazine, Australian Property Monitors

Wednesday, 24 July 2013

Listed property trusts help super funds to best returns in 16 years: Chant West


       Listed property trusts help super funds to best returns in 16 years: Chant West

reposted from http://www.propertyobserver.com.au
By Larry Schlesinger
Tuesday, 23 July 2013
The 2013 financial year delivered a 15.6% return for members of median growth superannuation funds, equalling the best performance in the past 16 years, according to research firm Chant West.
Funds oriented more heavily to listed shares and property delivered the strongest results.
It equals the super return generated in 2007 – just before the GFC sent returns plummeting into the red –and was not that far short of the previous highest return of 19.4% in 1997, achieved five years after compulsory super was introduced by Paul Keating.
Unhedged international shares delivered the strongest return over the past year of 33% but the second best performing asset was Australian listed property (A-REITS) with a return of 24% with global listed property returning 17.2%.
Unlisted property returned 8.4%.
Australian shares returned 21.9% and international hedged shared returned 21.3%.
chant_west
The top-performing fund for the year was BT’s Super for Life 1960s Lifestage, which returned 18.6%, while even the worst-performing fund in the growth category returned a healthy 10.2%.
Master trusts, with their higher weighting to listed shares and listed property (59% versus 55%), finished the financial year ahead of industry funds, returning 16.1% versus 15.9% - only the third time that master trusts have finished ahead in the past ten years.
Over the longer term, however, industry funds maintain their dominance.
Master trusts are super funds that allow financial advisers to be more personally involved with clients in their super fund asset allocation.
Chant West director Warren Chant cautioned super fund members not to get carried away with a one year figure.
“You’ve always got to remember that superannuation is a long-term investment. There will be good times and bad times, and you certainly can’t expect returns like this every year,” he said.
He says the typical return objective for a growth fund is to beat inflation by 3 to 4% (after investment fees and tax) over rolling five year periods which, in the current low inflation environment, translates to 6% to 7% per annum.
“To judge whether funds are meeting their long-term objectives, you really need to look back as far as you can, and certainly well past the GFC.
“We now have reliable data for all the major funds going back 21 years to July 1992, which is when compulsory super came in, and if we look back over those 21 years we see that funds have achieved those objectives.
"The annualised return over that period is 7.5%, the annual CPI increase is 2.6%, so the real return above inflation has averaged 4.9% per annum.
“As for the risk objective, there were three negative years out of the past 21 which averages out to one in seven, so that target was also met. The bottom line is that, over the 21 years in which we’ve had compulsory super, Australia’s major funds have done what they set out to do,” Chant says.

Tuesday, 23 July 2013

Great Must Read Australian Mining, the best concise wrap up I have seen


Australia’s Waning Boom Saps Mining Area Housing Demand


Great Must Read Australian Mining.
I think this article must be looked at objectively, with your own knowledge , but at the same time is one of the best concise wrap up I have seen. If you like property and mining areas interest you you will like this article.

After slashing the price of three planned townhouses by a third in the coal-mining town of Moranbah in remote northeastern Australia, agent Ricardo Baggio still can’t find buyers.
“No one’s got confidence,” said Baggio from broker Ray White Group’s Townsville franchise, about 550 kilometers (341 miles) north of Moranbah in Queensland state. “There are a few mines around the town but they’re not hiring or they’re downsizing.”
Houses stand in the residential subdivision of Baynton West in the town of Karratha in the Pilbara region of Western Australia. Photographer: Ron D'Raine/Bloomberg
July 22 (Bloomberg) -- 
 Australia’s new Treasurer, Chris Bowen, talks about the nation's economic outlook and central bank monetary policy.
The Reserve Bank of Australia still has room to reduce interest rates as slowing growth in China dents prices for the country’s exported commodities, Bowen says. 
He was speaking with Bloomberg's Ryan Chilcote in Moscow on June 19. (Source: Bloomberg)
Houses stand in the town of Karratha in the Pilbara region of Western Australia. Photographer: Ron D'Raine/Bloomberg

Home prices in Australia’s isolated mining towns,
which outpaced increases in the rest of the nation over the past decade, are falling as companies such as Glencore Xstrata PLC (GLEN) and Peabody Energy Corp. (BTU) delay projects and lay off workers amid a slowing resources boom.

The percentage of homeowners more than 30 days behind on their mortgage payments in Gladstone, a Queensland coastal town near more than $60 billion of gas projects, was 0.94 percent in March, according to Fitch Ratings, a 71 percent increase in six months.

The Moranbah townhouses, which will be built on a flat, sparsely landscaped street about 1 kilometer from the center of town, are on the market for A$525,000 ($478,485) each, down from an initial price of A$750,000, said Baggio.

The median price of a home in Brisbane, the state capital, is A$425,000.

Prices in mining regions could fall as much as 30 percent from a first-quarter peak, real estate-data company SQM Research Pty forecasts.

Demand for housing in central Queensland and Western Australia state’s arid Pilbara region, the nation’s two biggest mining areas, is waning as record investment in resources peaks even as property developers keep building more homes.
About A$150 billion of mining and energy projects have been canceled in the past year as commodity prices declined, according to government figures.

Population Drops

“We expect we’ll see an abrupt dropoff in population flows in mining towns,” Sydney-based Matthew Hassan, senior economist at Westpac Banking Corp. (WBC), said in a telephone interview. “How that plays back to housing is extremely complex. But we know the direction: down.”

In Western Australia, while only 1.6 percent of borrowers were late on their home-loan payments in March, “vulnerability in the mining sector and associated projects could result in an increase in arrears during the year,” ratings company Standard & Poor’s said in a March 31 report.

Significant Fluctuations

In Queensland’s Isaac region, which includes Moranbah, home prices tumbled 43 percent in the year to April, and rents slumped 69 percent, according to Sydney-based Australian Property Monitors.

Moranbah, about 1,000 kilometers inland northwest of Brisbane and home to more than 8,000 people, is near coal projects owned by BHP Billiton Ltd. (BHP), Anglo American Plc (AAL) and Rio Tinto Ltd. (RIO)
BHP last year closed part of its Gregory coal mine, south of the town, and in February said it wants to sell the mine.
Anglo American Chief Executive Officer Mark Cutifani said June 26 that the outlook for coal mining is “grim.” An index of hard-coking coal has more than halved since January 2011, when it peaked at $365.83 a metric ton, according to data from Energy Publishing Inc. compiled by Bloomberg.

Mining towns “are prone to significant fluctuations in property valuations, often driven by a combination of changes in the resource market and the shifting need for accommodation for mining workers,” Michael Savery, chief risk officer at QBE Insurance Group Ltd.’s Lenders Mortgage Insurance unit, said in an e-mail. They “require monitoring at either end of the property market cycle.”

Rockhampton Value

In Gladstone, about 500 kilometers north of Brisbane, property prices are falling as buyers find better value elsewhere.
The median home price has fallen 4.6 percent in the year through April to A$450,500, while in
Rockhampton, 116 kilometers further north in a region that is dominated by livestock grazing, it has risen 5.4 percent over the past year to A$350,000, APM said.

Housing markets in mining towns “have gotten ahead of themselves in terms of fundamentals and we’ve had a speculative market,” said Andrew Wilson, senior economist at APM. “A lot of potential buyers, especially those employed in the region, are looking at less expensive markets, like Rockhampton.”

House and apartment prices across Australia’s major cities rose 3.8 percent in June from a year earlier, according to the RP Data-Rismark home value index, after the Reserve Bank of Australia lowered its key interest rate by 2 percentage points between late 2011 and May to a record low 2.75 percent.

Pilbara Weakness

Australia had 73 committed mining projects under development in April, 14 less than in October, 
according to a May report by the Bureau of Research and Energy Economics. The number of people employed in Australia’s mining industry was 6 percent lower in May from a year earlier, government data shows.

Glencore Xstrata, the world’s biggest shipper of coal, halted work on the Balaclava Island export terminal, about 40 kilometers north of Gladstone, in May and cut 450 coal mining jobs in June.
It said this month it will suspend production at its magnetite iron ore operation near Cloncurry, about 1,300 kilometers west of Gladstone in inland Queensland.
Across the country, more than 5,000 kilometers west by road from Gladstone, in the Western Australian shire of Roebourne, rents have plunged 22 percent in the 12 months to April, while the median house price has slipped 3.5 percent to A$796,000, APM figures showed.

Roebourne includes Karratha, the biggest town in the Pilbara, a 193,000-square-mile area in Australia’s northwest that is the world’s largest iron ore exporting region.
The recent home price declines in the Pilbara follow average annual gains of almost 20 percent for the past 10 years in the two coastal towns of Karratha and Port Hedland, according to data from the Real Estate Institute of Western Australia.

Aspen Group

Aspen Group Ltd. (APZ), a Perth-based property investment company, said July 5 in a regulatory filing that it reduced by 13 percent the valuation of its 180-unit Karratha Village accommodation facility to A$50 million in December, reflecting “a reduced demand for workforce participation.”
Shares in Aspen are 22 percent lower this year and closed at 17.5 Australian cents on July 19.
The price of iron ore fell 31 percent from a 16-month high in February to a low of A$110.40 on May 31.

Pilbara Cities

The Western Australian government introduced the Pilbara Cities initiative in November 2009 to boost supply of land, housing and infrastructure in the region.

It seeks to build Karratha and Port Hedland into cities of 50,000 people by 2035.
That compares with the 2011 census that recorded 16,475 people in Karratha and 13,772 in Port Hedland.
As part of the initiative, Mirvac Group (MGR), Australia’s third-largest diversified property trust, is proposing to build the Mulataga community in Karratha, containing 2,000 homes.
“We look at Karratha as a sustainable city and the growth of that city over time as a permanent city,” said John Carfi, head of residential at Sydney-based Mirvac, which is working with the state’s land developer Landcorp on Mulataga.
The Mulataga plan received approval from the Shire of Roebourne in May and is awaiting state planning commission approval.

The number of homes for sale in Karratha rose to 265 in May from 219 a year earlier, SQM said.

Further Declines

“We haven’t hit the bottom of the market yet,” said David Hipworth, principal of broker LJ Hooker Corp. in Karratha
“If we keep going the same way we have so far, in 12 months, I expect another 25 percent drop in rents and 10 percent in prices.”
The April median home price in Port Hedland was A$1.1 million, APM data show. That compares with 448,443 pounds ($677,508) in the greater London area in April, according to LSL Property Services Plc and $346,300 in New York City in May, figures from real estate data provider Zillow Inc. show.
“We like to see these prices fall,” said Ken King, chief executive officer of the Pilbara Development Commission, which is responsible for implementing the Pilbara Cities plan. “And we’d like to see the trend continue, even though this doesn’t sit well with a lot of recent investors.”

About 240 kilometers north along the coast from Karratha, rental vacancies in Port Hedland jumped to 4.6 percent in May from 0.9 percent a year earlier, compared with a national vacancy rate that rose to 2.1 percent from 1.8 percent a year ago, according to SQM.

BHP shelved a A$22 billion harbor expansion plan for Port Hedland in August in favor of a low capital-cost program of improving port and rail operations.
CEO Andrew Mackenzie in May said the company plans to cut capital spending 18 percent to $18 billion in fiscal year 2014 and said about 80 percent of construction on its major projects will be completed in the same time frame.

Apartment Buildings

Australia’s resources industry directly employed 261,000 people in May, 2.2 percent of the nation’s total workforce, compared with 12 percent in health care and 11 percent in retail services -- the two largest industries by employment, government figures showed.

Outstanding loans in Australia’s mining areas represent about 1.5 percent of all mortgages underlying residential mortgage-backed securities, S&P said in a report in September.

Perth-based developer Finbar Group Ltd. (FRI) is building Karratha’s first high-rise apartment development, Pelago, in the center of town. All but 15 units in the 114-apartment first phase, which was finished about a year ago, have been sold, Robin Schneider of McGees Property, the exclusive selling agent for the project, said in a telephone interview. In the second phase, 81 of the 174 units that are expected to be completed next year were pre-sold as of June 2, he said.
“Obviously the resources sector is getting a lot of attention, which will no doubt have a flow-on effect to confidence and market sentiment,”
Darren Pateman, managing director of Finbar, said in an e-mail.
To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net
To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net; Rob Urban at robprag@bloomberg.net

Light rail will transform Sydney's residential development market: Peter Chittenden


       Light rail will transform Sydney's residential development market: Peter Chittenden

reposted from  http://www.propertyobserver.com.au/
By Peter Chittenden
Tuesday, 23 July 2013
It is easy to lose track of how frequently infrastructure and development are linked together and how the lack of infrastructure has a negative impact on many aspects of the residential development market.
Now the context of this debate is about to dramatically change and I feel that to some extent it’s a change that has snuck up on us.
Over the next few years two light rail links in Sydney will transform parts of the south-east and inner-west.
Building and completing these projects will also reduce chronic CBD congestion and help revitalise Sydney and for the CBD in particular, adding further energy to the residential market.
lightrailjuly23one
Both projects will have a major impact on the surrounding residential environment and will boost investment and site demand. The inner west light rail extension will connect to the existing light rail service,which operates from Central to Lilyfield, through the inner west to the Dulwich Hill Interchange.
This extended service will begin operating in early 2014 with nine new stations and an investment of $176 million. Popular residential areas like Leichhardt, Dulwich Hill and Marrickville are set to benefit.
The much talked about south-east light rail to be built through the Sydney CBD to Randwick and Kingsford is also on its way.
A heads of agreement is now in place with Randwick City Council, The Centennial Parklands Trust and The University of NSW, along with the already committed City of Sydney Council, who have joined with the state government to assure the project.
The obvious support of the Sydney City Council for the project has been shown through a contribution of $220 million.
With an estimated total price tag of $1.6 billion the 12 kilometre project will link Circular Quay and Central via George Street, the Moore Park precinct (including the Sydney Cricket Ground and Allianz Stadium), Randwick Racecourse, the University of NSW and Prince of Wales Hospital at Randwick.
Significantly the light rail will also reduce the number of buses now increasingly clogging the CBD during the peak with lines of buses at stand still a sore point.
lightrailjuly23two
The reduction in congestion combined with a brand new public transport option to key locations will greatly increase the demand for new residential development.
In recent months we have already seen parts of Kensington transform with new projects as this potential becomes a reality and the trend will continue across the entire area.
The light rail will deliver an integrated, modern and new transport solution making suburbs like Randwick, Kensington and Kingsford even more attractive places to live and this will further reinforce the demand for apartment projects in these areas.
In the Sydney CBD and surrounding areas, residential projects will have access to the light rail and this will boost the appeal of the projects around the billion-dollar redevelopment of the Sydney Entertainment and convention centre.
lightrailjuly23three
In the south-east, major employers like the Prince of Wales Hospital and The University of NSW will also benefit from the new light rail and this will fuel the demand for housing in the area already influenced by the student population.
When looking at the appeal of these areas in terms of new developments other key benefits of the new light rail will include the reduced journey times into the CBD and this will in-turn boost retail activity and reduce travel time for those working in the city.
Moving people efficiently into and out of special events at Moore Park is also a very positive feature that will potentially boost economic activity as the area competes to attract new events.
All eyes are now on the final timetable for construction of this very welcome infrastructure in the South East, which it is expected to take five or six years. Construction work is planned to begin in 2014.
From the many comments discussed here in Project Agenda, investing in quality infrastructure for Sydney is a vital step in cementing our reputation as a world class city.
In the past we have been marked down in some international rankings because of the lack of a reliable and modern public transport systems.
The inner-west and south-east light rail links are very welcome and they are set the change the local dynamics of housing and future residential development markets.

Saturday, 20 July 2013

WA Changes to the Residential Tenancies Act – What They Mean to You


Changes to the Residential Tenancies Act – What They Mean to You

On the 1st July 2013 the new changes to the act will come into effect. While there have been many minor technical changes, there are several major ones that will affect all landlords in Perth.
Tenancy Agreement
All rental properties in WA will be required to meet the new minimum levels of security as set down under the Act. This is the first time security has been specified.
  • Main entry door must have a deadlock, unless there is a compliant lockable security screen
  • All other external doors must have a deadlock or patio bolt
  • Exterior windows must be fitted with a locking device that cannot be opened from the outside
  • There must be an external light at the main entry that can be operated from inside
Owners will have 2 years in which they can upgrade their property to meet the new minimum requirements.
Next time you have a handyman attend your property for general maintenance, why not have him fit the required locks to make your property compliant without a second call out fee.
Urgent Repairs – Urgent repairs to essential services (gas, electricity and water/sewerage) must be notified to the owner / managing agent as soon as is practicable and that person must arrange for the work to be carried out to restore the service within 24 hours.  If the tenant cannot contact the person responsible, then they may organise the repairs to be carried out and be reimbursed by the owner.
Owners Right of Entry to the Premises – Under the changes to the Act we may now only enter the property 4 times each year for the purpose of conducting Routine Inspections. Inspections will need to be planned to maximise their effect as re-inspections after a breach may contravene the Act now.
Prescribed Forms – New forms are being produced by DOCEP and are to be used by ALL landlords and Managing Agents. We may add annexures if we think necessary. The new formats will apply to Leases, and Property Condition Reports, which are now mandatory even for private landlords.
Lease Renewal with Increased Rent – Either the tenant or the owner must now give 30 days’ notice to end a fixed term tenancy – It will not automatically end at the end date specified on the lease.  If a new lease is negotiated at a higher rent, then the new rental amount will not come into effect until 30 days after the commencement of the new lease.
Option Fees - It is common practice to take an option fee with applications from prospective tenants. This has previously been the equivalent of 1 weeks rent but under the changes to the Act it will be reduced to $50 for a property with rent less than $500pw and $100 for properties over $500pw.  The Option fee cannot automatically be applied to rent once the application has been accepted.
Complying with the Residential Tenancies Act has always been a minefield for private owners and now with so many changes to the small print it is even more complicated leaving you open to litigation if you get it wrong. Many of the fines for non-compliance have been increased and there are no special exemptions for Private landlords.
It is more important than ever to ensure you have a very competent Property Manager, who has a full understanding of the legalities of renting out your property and can protect you from potential claims arising from non-compliance.
Denise Thompson

About

Denise is driven by a commitment to help investors get maximum return on their property investment, with minimal involvement. She prides herself on building strong relationships with investors and tenants to ensure the best protection of property assets. As a passionate property investor managing her own portfolio, Denise understands the challenges and pitfalls of property management and is skilled in averting a crisis. She has a flair for finding the right tenants, and keeping them. Denise has a background in business management and marketing, and holds a real estate license. She thinks outside the square and will happily go the extra mile to protect your property and maximise the value of your investment. Denise is well known in the Perth real estate sector and is raising property management standards to an unprecedented high within the industry.

Thursday, 18 July 2013

Anyone with Mining Area's in QLD needs this Magazine


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Wednesday, 17 July 2013

NSW Peakhurst had their density increased from low to medium, allowing three-storey developments.



DISTRESSED Peakhurst residents facing more higher-density development have formed an action group to fight for their quiet streets.


Following state government changes to the Hurstville local environmental plan, parts of Peakhurst, particularly the old Department of Housing area near Peakhurst Park, had their density increased from low to medium, allowing three-storey developments.
Residents in the rezoned streets fear overdevelopment, traffic congestion and loss of peace and privacy.
And they can't see a reason for the zoning change as there are no railway stations nearby and the streets are too narrow for increased traffic.

Many of the residents had bought the Department of Housing properties and built family homes. They have formed Peakhurst Action Group to fight the rezoning. The last meeting was attended by more than 40 people, including Hurstville councillors.

Group members had met with state MPs Mark Coure (Oatley) and Robert Furolo (Lakemba).
Spokeswoman Magdalene Ball said Mr Coure was organising a meeting with Planning Minister Brad Hazzard and Mr Furolo had questioned Mr Hazard in parliament in June. But developers and real estate agents eager to make a buck were hovering, she said.

"Sadly, more homes have 'for sale' and 'auction' signs," she said.
She urged residents to write personal letters of objection to Mr Hazzard and Mr Coure.
"We urge all residents to make an online objection to the White Paper (the government's proposed new planning system) and we will be seeking the support of the sporting groups that use Peakhurst Park as the traffic and parking there on weekends is particularly atrocious," Mrs Ball said.

COUNCIL ACTION
Hurstville Council remains strongly opposed to the zoning changes and supports the action group but is also looking to the future.

At the council’s most recent meeting on July 3, it allocated $5000 for a traffic volume study near Peakhurst Park and resolved to write to sporting and community groups who use the park to inform them of the LEP changes and the potential impact on their activities.

It also resolved to consider the parking problems and traffic congestion around Peakhurst Park when assessing development applications for the surrounding area affected by the LEP changes.
‘‘This high density development will result in more traffic congestion and more parking problems, particularly on weekends,’’ Cr Justin Mining said.

‘‘This will ensure that any development applications can be more thoroughly assessed and assist council to plan for the future.’’

Interesting simply to understand Stock down 15% on Rudd’s carbon policy


Business News

Stock down 15% on Rudd’s carbon policy


Wall Street is waiting on the Federal Reserve boss Ben Bernanke and his testimony on Capitol Hill tomorrow. What this guy says about tapering could be a big market maker, or breaker, but even in the face of this unknown, the sell-off was small. But locally, the promises of Kevin Rudd are set to upset a lot of shareholders with shares in a company called McMillan Shakespeare off 15 per cent following the PM’s killing of the carbon tax for an emissions trading scheme (ETS).
In fact, the decision forced the shares to be placed in a trading halt!

And the question is, what other companies could be threatened by a pre-election, prolific, promising Prime Minister? This is one reason I try to buy stocks that are less likely to have sovereign risk, but it’s hard to avoid the long-arm of government — ask the miners, though the big guys did a good job hoodwinking the Gillard Government with the latest version of the mining tax!

Stock story
So, let’s get to the details of this sad, stock story.
McMillan Shakespeare is a car and salary packaging company and lots of my experts on my Switzer program on the Sky New Business channel love the stock. It has been a great performer.
In a nutshell, to help pay for the switch from a carbon tax to an ETS, the new Treasurer, Chris Bowen will crack down on the car leasing deals that’s projected to hit 320,000 taxpayers.
And the likes of Ford and Holden will see this as a kick in the guts as many of their customers use salary packaging to buy new cars.
Keep a logbook
The Government wants to save $1.8 billion by making everyone who wants to claim a tax deduction from car use to keep a logbook to prove business use. Under the alternative statutory method, there is an assumption of a set amount of business to private use, which affords the car-leasing customer some tax relief. By scrapping this method, money is saved to offset some of the losses from killing the carbon tax.
These fringe benefit tax (FBT) changes will apply to all new contracts entered into from the time of the announcement and start on April 1, 2014.  The plan is to prevent people claiming a tax concession for personal use of a salary-sacrificed car.
In abolishing the statutory formula method, the fringe benefit, which was calculated at the cost of the car multiplied by 20 per cent, will be linked to a logbook method where actual business and private use will have to be recorded.
Now those with salary-sacrificed or employer-provided cars will have to use the operating cost or logbook method or they will lose their tax advantage.
Tradespeople and others who drive utes, etc, are not victims of FBT but a quick call to your accountant might be a good idea.
This out-of-the blue decision, which by-passed industry consultation, will be used by Kevin Rudd’s opponents to point out how controversial Kevin can be. If you are in the car industry or you hold McMillan Shakespeare shares, you could be sorry that Kev replaced Julia as PM!
Wall street falls
On Wall Street, the Dow lost 32.41 points or 0.21 per cent to 15,451.85 while the S&P 500 gave up 6.24 points or 0.37 per cent to finish at 1676.26.
On the earnings front, Yahoo and Coca-Cola disappointed, but Johnson & Johnson beat the Street tips on revenue and earnings. Economy-wise, homebuilder confidence hit the best level since January 2006, which was before the letters GFC were even thought about! And it was big jump from 51 to 57 on the NAHB/Wells Fargo Housing Market index.
Also industrial production was up 0.3 per cent in June, which is another good sign for the US economic recovery and stocks down the track.
But today K.Rudd will get a lot of airplay with opponents bounds to use the old line about the old and now new PM, which goes like: “Here we go again!”
Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Watch more from Peter on SWITZER TV.

Published on: Wednesday, July 17, 2013
The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer, Paul Rickard and Charlie Aitken the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

Tuesday, 16 July 2013

Sunday, 14 July 2013

Another great article by Switzer's John McGrath Tips for Auctions



The Experts

John McGrath
Property Expert
+ About John McGrath



Tips for buying before auction

Tuesday, June 04, 2013
Auction clearance rates have improved substantially in many markets this year. Take Sydney, for example. The clearance rate is up by about 20% on last year and hit a peak of 78% in late May. That’s a very strong rate of sale and reflects an increasing urgency among buyers to secure their next property before the market really takes off.

When there’s this type of urgency in the marketplace, it’s not uncommon to see buyers making offers on properties in the first week of the campaign. Today, I think this is especially the case because many buyers have been sitting on the sidelines for years so they’re more than ready to get a deal done now that the bottom of the market has passed.

Anecdotally, we’re noticing a lot of pre-auction sales occurring in today’s market, so I thought I’d share my tips on how to better your chances of securing a property prior to auction, especially when you have competition from other buyers.

In a rising market, it’s to your advantage to secure the property without the competition of others. But if there’s a lot of interest in the property and market conditions are strong, the vendor will probably be more inclined to go through to auction. So if you want to buy prior, you need to play your cards right to entice the vendor to sell early.

Here are my top tips for buying prior to auction:
  1. Tell the agent you’re interested and ask if the vendor is willing to sell privately. If the agent gets a flood of offers after the first open and you haven’t made yourself known to them as a serious buyer, you might not get the chance to make an offer
  2. Let the agent know you have pre-approved finance. This is a very important signal that you’re a serious buyer
  3. Offer a price that is close to your walk-away figure. Vendors will only entertain the idea of selling prior if a premium price is put forward. As with all negotiations, the vendors will assume your first offer isn’t your best so leave some wiggle room
  4. Waive your right to a cooling off period to show you’re a serious buyer
  5. Do more than a verbal offer. The best way of showing you’re serious is by signing the contract and attaching a cheque for the deposit. Alternatively, put your offer in writing and mention you have your finance approved
  6. Offering odd amounts is a great tactic especially after making a couple of lower offers. For example, rather than offering $460,000 or $465,000, offer $463,500.  An odd amount suggests there’s some logic to your offer and it also implies that you’re at your financial limit
  7. Be prepared for a situation where you and another buyer are at the same price, so it will come down to a race to exchange. If neither of you are willing to offer more, it will be a matter of who can get themselves organised and in a position to sign the contract first
If you’ve been thinking of buying, now is definitely the time. With interest rates at an historical low, competition is only going to get stronger.

Saturday, 13 July 2013

NSW 5.6% jump in Sydney property values


5.6% jump in Sydney property values

The Experts


John McGrath
Property Expert
+ About John McGrath




Tuesday, July 09, 2013
New figures released by RP Data for the 2013 Financial Year show a 5.6% gain in Sydney home values. Breaking these stats down, houses were the better performers at 6.3% growth, while apartments recorded a 2.4% rise.

What interests me even more are the calendar year-to-date numbers. Between January 1 and June 30 this year, Sydney house prices have increased by 4.8% and apartments have grown by 4%. If this same pace of growth continues for the rest of the year, we’ll be looking at close to 10% growth in house prices and 8% growth in apartment prices by Christmas – impressive stuff.

I’m expecting Sydney to make further progress in its recovery this year. We are well past the bottom of the market and sellers have a great opportunity in front of them today. Our agents are consistently recording strong results on good quality properties in good locations. We’re receiving multiple offers on properties and auctions are routinely attracting several registered bidders. Buyer competition is strengthening as more people come off the sidelines after hesitating to make a move in 2011 and 2012.

Brisbane, meanwhile, is only at the very start of its recovery, with the RP Data stats showing an 0.6% growth in home values during FY13 – breaking down to 0.9% growth in house prices and a -1.8% decline in apartment prices for the financial year. Things are looking up though – the calendar year-to-date numbers show house prices are up 0.5% since January, with apartment prices experiencing only a very slight decline at -0.1%.

Sydney and Brisbane are two very important markets right now.

 Let’s look at it from an investment perspective. We are at the start of a 3-5 year recovery in both markets. Sydney is ahead, as it always is. While Sydney is an excellent option for long-term wealth creation, Brisbane also has much to offer – especially in terms of affordability.
  • The median house price in Sydney right now is $662,500 and the yield is 4.2%. In comparison, Brisbane’s median house price is $448,500 and the yield is 4.7%
  • On the apartments front, the median apartment price in Sydney is $500,000 and the yield is 4.9%. Brisbane’s median apartment price is $370,000 and the yield is 5.7%.

The bottom line is, Sydney is more expensive to buy into but will probably deliver better capital growth in the medium term. Brisbane is more affordable and offers a greater yield. 

That’s how it is right now. Things might change in the future though, as I expect Brisbane to become a stronger market returning stronger capital growth as more Australians make South-East Queensland their home. More than a quarter of Australia’s population growth over the next 25 years is expected to be in the region from Noosa to Coolangatta and this growth will push Brisbane ahead of Melbourne as the country’s second biggest city.

This is a really exciting time in the property market for Sydney and Brisbane. We are on the cusp of a significant upswing and smart buyers and sellers are taking advantage of this now.