Enews Spring Issue No.1 / 3rd September 2010Property News:Investors Ready To Roll But Caution Still RulesSome investors believe unchanged interest rates will see a pick-up in confidence, others say savvy investors are waiting for a bargain, and some believe the sector will slow in coming months despite the traditional busy spring selling season. Investors still borrowed $2 out of every $5 lent to the residential market last month. Although investment lending was down 4 per cent on the previous month, it was still 11 per cent up on the same time last year. Most investors appear to enter the market for long-term capital gain, which is not surprising. But what is surprising is how few seem to stay the distance. Matusik says that more than 80 per cent buy for long-term gain, yet one in four investment properties are taken off the rental market, mostly sold, within a year, and half are sold within five years. One-third say they sell because they need the money, about one-quarter because of unsatisfactory capital growth and 20 per cent because of lower than anticipated rental returns. One in six sell because it’s too much hassle. Matusik says his survey work suggests that most investors expect values to double every 10 years and have a gross yield of more than 5 per cent. Most investors are aged between 35 and 54 with only one in five under 35, and only 7 per cent over 65. On average, the typical Australian investor holds 1.5 residential investment properties. Three out of five borrow to invest, most negatively gear and one-quarter rent out their previous place of residence. Only 10 per cent buy an investment property outright and few, 4 per cent, inherit an investment property. Nine out of 10 buy in their own state and two-thirds in a capital city. Brisbane attracts only a 50 per cent share of local investors. Innercity suburbs are favoured. © The Weekend Australian, August 28-29, 2010 Electoral Uncertainty
Ray White real estate chain Chairman Brian White said the spring selling season was traditionally the busiest time of the year for capital city markets, but he feared the worst if the political deadlock were not resolved quickly, and without the need for a fresh election. 740 Melbourne homes are due to be sold under the hammer which is the largest number since the peak of the 2003 housing boom, and compares with only 343 auctions the weekend before. Sydney prices and sales activity remain subdued, but steady winter sales pointed to a good spring period with buyers remaining selective and if a property fits, they are paying good prices. Property Tips:
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|
Factor |
Market Indicators |
|
Rental Vacancy Situation |
Balanced Market |
|
Rental Vacancy Trend |
Steady |
|
Demand For New Houses |
Fair |
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Trend in New House Construction |
Increasing |
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Volume of House Sales |
Declining |
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Stage of Property Cycle |
Start of Recovery |
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Are New Properties Sold at Prices Exceeding Their Potential Resale Value |
Frequently |
Gold Coast Property Market Indicators as at January 2010 - Units
Factor
Market Indicators
Rental Vacancy Situation
Oversupply of available property relative to demand
Rental Vacancy Trend
Steady
Demand For New Units
Soft
Trend in New Unit Construction
Declining
Volume of Unit Sales
Declining
Stage of Property Cycle
Rising Market
Are New Properties Sold at Prices Exceeding Their Potential Resale Value
Very Frequently
Click Here to review the full report http://www.htw.com.au/Downloads/Files/202-February-2010-Month-In-Review.pdf
© Herron Todd White - The Month In Review, February 1, 2010
Auctions Point Way To An Urban Bounce
The belief that this will be a good year for the residential market is already being borne out in auction results and sales. Wakelin Property Advisory, which specialises in acquiring residential property foresees some good buying opportunities in the $1 million to $2 million range for homeowners and investors. It says upwardly mobile purchasers returned to the top sector in spring, and the number of properties for sale above $1.5 million has increased steadily since. However, it is optimistic that the upper-level price range will gain real momentum, unless of course there is bad news in the financial sector or if home loan interest rates rise above 8 per cent. While last year was a year for buying cheaply, for an investment-grade property this year Wakelin reckons investors will need a minimum of $400,000 for an apartment and $700,000 for a house in all leading capital cities except Adelaide, where prices are around 15 per cent less. And while growth for main centres is expected to be 5 per cent to 10 per cent, the right types of properties should perform better than that.
© The Weekend Australian, February 27-28, 2010
Property Insights To Boost Wealth
Australia currently has a chronic undersupply of new housing which is further magnified by our booming population growth. Add to this a greater tightening of bank lending criteria and it all adds up to investment properties being a highly successful wealth creation strategy. Property investment is a long-term strategy. The housing market generally experiences a 7-10 year cycle where there are peaks, troughs and plateaus. Get sound professional advice on things such as :
Is negative or positive gearing best for you?
Should the property be purchased through a trust or in your spouse’s name?
The benefits of interest-only loans for investors.
Answers will vary depending on your own circumstances.
© The Gold Coast Sun, March 3, 2010
Rules For Successful Investing In 2010
Australia is on the verge of the biggest investment boom as a large number of projects await final decision to go ahead according to the latest Access Economics - Arup Investment Monitor. The report said there are currently 145 projects worth some $161 billion where a decision on whether to go ahead or not is expected to be made during 2010.
© The National Mortgagee & Deceased Estate Data, February 2010
Generational Shift Of Wealth
An unprecedented ‘baton change' of wealth is expected in the next 15 years as the older generation hands over as much as $400 billion worth of property to their children, a new report says. An ageing population and high home ownership rates will combine to produce a ‘perfect storm’ of wealth transfer between generations, the Inherited Housing Report 2010, released by Bank West, shows.
Our research projects that there will be a 95 per cent increase in the number of estates with housing assets by 2025. In 2009 there was an estimated $16 billion of housing inheritance and report shows this could increase by 93 per cent to $31 billion a year by 2025. Veterans and baby boomers were sitting on housing assets worth between $1.5 trillion and $2 trillion. Homes make up around 60 per cent of total household wealth.
© The Gold Coast Bulletin, April, 2010
Daredevil Ride Of Thrilling Highs And Killing Lows
“For those who can afford the price tag, premium property markets have generally provided stronger capital gains than the broader market, thanks to inherently tight supply of inner city, coastal and character properties,” Tim Lawless, RpData Research Director said.© The Weekend Australian – Prestige Property, April 17-18, 2010
Rarity commands a premium, even at the very top end of a market
Diamonds Among Pearls
The prestige property market is one of the most difficult to read. Unlike other sectors, where demand is closely linked to mortgage rates, blue ribbon property can attract astronomical prices when the location or style is right. For some buyers, the number crunching game of investment is the driver. But others buy on a whim, despite market conditions. Melbourne Solicitor, Dominic Scally said, “In 10 years, the best properties are going to be two or three times their value”.
© The Australian Financial Review, April 30 - May 2, 2010
Winter Blues May Be Just Back To Normal
Slower home sales, described by some as simply the winter chill, could be the return to more normal levels as the effects of historically low interest rates wear off. There is a niggling uncertainty about the health of world financial and equity markets. There are still opportunities to purchase relatively affordable inner-city properties, according to researcher RP Data. The most expensive Sydney suburb is Bellevue Hill, with a median price of $3.65m. Prices in the outer city suburbs are often pushed up when the suburb is near the coast, a river or lake or there is a predominance of acreage blocks.
© The Weekend Australian, August 1, 2010
Property Tips:
Trends - Ideas - Information
The Keys To Successful Property Investment
With interest rates on the rise again and with the affordability window closing as quickly as it opened, many people are questioning whether investment properties are still a good strategic investment. The simple answer is ‘yes’ for a couple of reasons. Australia currently has a chronic undersupply of new housing, which is further magnified by our booming population growth. Add to this a greater tightening of bank lending criteria and it all adds up to more and more people looking to rent rather than buy. This competition for rental properties has to two benefits for property owners in that it firstly drives up rental prices, which in turn drives up the commercial value of each property.There are other factors that need to be considered. Keep in mind that property investment is a long-term strategy. The housing market generally experiences a seven to 10-year cycle where there are peaks, troughs and plateaus. Get sound professional advice on:
Is negative or positive gearing best for you?
Should the property be purchased through a trust or in your spouse’s name?
The benefits of interest-only loans for investors.
The correct answers to these questions will vary depending on your own individual circumstances. Successful investors take control of their investments by being constantly informed on current market trends, emerging growth locations and industry data such as rental vacancy rates. Key fundamentals that need to be assessed when looking to invest in property fall under two categories: macro and micro.The macro relates to fundamentals of areas that assist to drive price growth such as the likely population growth of an area, planned and commenced infrastructure, employment opportunities, local industry and supply versus demand. The micro relates to the location of the property in relation to schools, transport and shopping. The demographics of an area can have an impact on capital growth potential. You should also assess the anticipated rental yield based on existing rental prices of surrounding homes. Factros such as the value of new versus old property are also important. There are many things that need to be considered before you purchase an investment property.
© GC Property & Lifestyle Guide, February 11-17, 2010
Relocation Loan
“80% + Of The Loans I Have Written Would Be People Looking To Sell Before They Buy”
Many years ago, this type of loan was very expensive and customers felt trapped. It has now been ‘re-vamped’. Key Points:
- Able to purchase prior to selling.
- Have 6 months to sell their existing home.
- The deposit for the new home can be included straight away
- All of their additional expenses can be included such as stamp duty and removalist expenses.
Industry News :
- The banks are a little slow in getting the loan documentation out for execution post approval.
- For those with a long finance clause and a short settlement period please beware!!!!!
- For all of my clients I am positioned better than most to expedite this process given I am a JP and do all document sign ups.
WBC has already tightened their policies and watch for CBA to do likewise. On the flip side ANZ, who have worked hard to have their bad debt under control over the past 12mths, are looking to go the other way and test the boundaries once more. Stay tuned to these updates as they come to hand.
Click Here to email Nathan from LoanMarket
Download FREE eBook – Ultimate Guide to Home Finance Click Here
Cash In On Renovations
A lick of paint adds thousands
To renovate or not to renovate? That's the question Gold Coast home owners are asking after new research revealed expensive revamps were not guaranteed to boost a property's sale value. Instead experts have suggested splashing a lick of paint on the facade or using a 'property stylist' to shuffle furniture to reap greater financial rewards. Be cautious following the latest advice 'to stay put and renovate. There are two things to take into account, whether you are doing it for lifestyle or financial gain. If someone is going to spend money for the purpose of selling, they would want to get at least double back. While owners might get their money back for kitchen or bathroom renovations, spending $2000 on exterior touch-ups and landscaping could reap a $10,000 increase in the sale price. To mitigate risk, owners should never exceed the median value of their suburb when combining the purchase price and renovation costs.
Top tips to attract buyers:
- De-clutter - remove family photographs and personal items.
- Clean - ensure your house is spotless.
- Curb appeal - the external appearance will be a deciding factor as to whether buyers step through the door.
- Odour control - ensure the house smells fresh and inviting, no pets.
- Space - move furniture to create an illusion of space.
- Lighting - carefully placed lamps can ensure the house looks bright and inviting.
- Temperature control - ensure the house is cool, switch on air conditioners.
- Make repairs - everything should be in working order.
© The Weekend Bulletin, February 20-21, 2010
Property Tips From The Experts
Now is a great time to buy property. Australia as a whole has a chronic under supply of new housing. Southeast Queensland is one of the best, or worst depending on your situation, examples of this. More and more people are looking to move to the southeast corner, yet there are not enough houses being built to accommodate them. This means, it’s a property investors paradise/. Business is all about supply and demand. A lack of supply coupled with a high demand results in massive profits. Smart investors understand this, which is why the property market is continuing to experience strong growth in the southeast corner.
© The Gold Coast Sun, March, 2010
Renovation’s Law Of Diminishing Returns
The cost of expensive home repairs and additions may fail to add to the bottom line when you sell
According to a survey of PRDnationwide real estate agents, the average remodelling jobs costs thousands of dollars but sellers aren’t recouping the costs come sale time. The agents agree the most basic and necessary cosmetic touch-ups, such as painting and landscaping, result in a profit. You can spend $2000 in the right areas and get a $10,000 increase in sale price. But don’t spend $10,000 and expect a $50,000 increase. The least expensive repairs and improvements add the maximum value.
The most financially successful jobs are smaller-scale, lower cost renovations that improve the exterior appearance of the homes. There is a difference between renovating for your own use and for resale. Among the remodelling jobs faring the worst in return on investment are large, upscale kitchens, bathrooms and extensions. Tips are to focus on presentation rather than renovation. Getting professional advice from a property stylist and simple things such as moving furniture, extra lighting, and adding artwork and cushions will improve resale value. Recognise that renovations will always cost more and take longer than you budget for. If the idea is to sell it at the end, you must cater for the local marker and not overcapitalise.
© The Weekend Australian, March 6-7, 2010
Why Homes Offered At Auction Often Sell Before!
Just because a home is advertised for auction does not mean you have to wait until the day of the auction to make an offer on it. Through the estate agent you can make a pre- auction offer to the vendor if you have an interest in buying the home. For the last three years, this kind of sale result occurred in around two in every 10.
This means that in the current market it can be important to consider making a pre-auction offer to avoid missing out on buying the home you want. There are a number of advantages in making an offer, even if the offer fails.
A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer.
If you do make an offer it has to be an attractive one that gets the vendor's attention and convinces them not to wait until the day of the auction. There are a number of things you can do to make the offer attractive: first, put the offer in writing; in some cases presenting the offer with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting until the auction. It is also always advisable to obtain legal advice before signing the contract of sale.
© Ray White Ferntree Gully Newsletter, March 2010
Do Your Homework
It pays to understand the buying and selling process
It is a good idea to seek pre-approval for a loan before spending weeks and months on end searching for a dream home only to find that after signing contract the finance application to purchase the property is rejected. For those looking to sell, it is wise to get someone to have a critical look at the property before putting it on the market. A coast of paint, fixing broken fly screens, making sure doors and windows slide open properly, removing stains from carpet and decluttering could add value to your property.
© The Gold Coast Property & Lifestyle Guide, March 11-17, 2010
Market Advice
John McGrath, CEO of McGrath Estate Agents said the internet, the wealth and size of the Baby Boomer generation, the rise of China, Facebook, YouTube and branding was changing the way real estate agents executed marketing campaigns. “It doesn’t matter if it’s a $45 million house, a $4.5 million apartment or a $450,000 duplex, it is the same process for selling,” said McGrath. “The best price normally comes off the launch phase of marketing the property, so it is crucial that it is set right.”
© The Gold Coast Bulletin, April 14, 2010
Under One Roof
‘Buddy Buying' popular but beware the pitfalls
With the median house price in many southeast Queensland suburbs predicted to hit $1 million within the decade, first home-buyers and savvy investors are turning to friends and family to get a foot in the door. “The first thing you need to decide is whether you’ll have joint tenancy, so you don’t own a share, and if you die, the property automatically goes to your partner,” Rob Martin from RD Martin & Company Lawyers said of the usual agreement among married couples. For co-purchasers, most opt for a “tenancy in common” agreement which allows the parties to own a specified share.
© The Sunday Mail, March, 2010
Waterfront Properties
Revetment walls are structures that help to stabilise waterfront property. Waterfront landowners have responsibilities in relation to revetment walls that benefit their property. For details on these responsibilities please refers to the latest Revetment Wall Information Sheet at www.goldcoastcity.com.au/revetment . Printed copies are also available at Council administration centres.
© The Gold Coast City Council Publication, 2010
Negative Gearing
The concept of negative gearing is the subject of a significant level of debate at the moment, so it is worth reviewing what is it and how it works. From the perspective of the tax office, a rental property is negatively geared if it is purchased with the assistance of borrowed funds, and the net rental income - after deducting other expenses - is less than the interest on the borrowings.
The loss can be claimed as a tax deduction. While the deduction does make the property more affordable, it is not sustainable in the medium and longer term. An investor should ideally purchase a property that will appreciate over the medium-to-Iong term. This will deliver equity and capital gain. If you are considering buying an investment property it is always advisable to seek accounting and financial advice first.
© Ray White Ferntree Gully Newsletter, April 22, 2010
Keep Prices Real : Herriot
A new service launched this week aims to provide a reality check for Gold Coast property owners confused by an increasingly tough market. Independent property valuer and real estate consumer advocate Iain Herriot (pictured) has developed a new tool called the Property Valuation and Vending Report. Mr Herriot said the report provided confidential, independent expert advice to property owners regarding the current market value of their property including a realistic list price.
Mr Herriot said PVVR's would take the guess work out of property sales for vendors but would also help reputable real estate agents. "The main benefit to the owner in obtaining a PVVR is that it puts the owner in charge and empowers them with expert advice on not only the value of their home, but advice on repairs and improvements needed to enhance sale . "This report will arm vendors with information about what the property is actually worth in today's market and then offer advice on setting a realistic list price or reserve."
© The Gold Coast Bulletin, July 31, 2010
Revetment Walls – Waterfront Properties
Waterfront land owners are responsible for the upkeep of revetment walls that benefit their property. The Body Corporate has responsibility for revetment walls that benefit community title developments.
If concerns are detected, the waterfront land owner should arrange for a suitably qualified professional engineer to assess and report on the structural integrity of their revetment wall. Revetment walls are structures that help to stabilise waterfront property. Refer to the latest Revetment Wall Fact Sheet at www.goldcoastcity.com.au/revetment
© Gold Coast City Council Newsletter, July, 2010
ATTENTION PROPERTY INVESTORS:
Maximise your depreciation deductions today!
Almost 80% of property investors are missing out on thousands of dollars in depreciation deductions from their commercial property. BMT Tax Depreciation specialise in maximising depreciation deductions for investment property owners, With our 'double our fee or it's free guarantee' and short turnaround times, you'll be guaranteed that we are working hard to ensure you get the most money back from the ATO, Article Provided by BMT Tax Depreciation, www.bmtqs.com.au <http://www.bmtqs.com.au/> for an Australia wide service
© BMT Tax Depreciation
Newest Fad On The Market "Superannuation Loans"
The GFC has changed the way many Australians think about their superannuation portfolios. In the wake of 30-50% losses and the change of legislation in September 2007 allowing for gearing within a superannuation fund, superannuation loans have become increasingly popular.
A couple of points:
• Lending ratio's up to 80% for residential property and 65% -70% for commercial
• Must have a self managed fund with each property purchased within it to have its own" trust"
• Interest rates can be fixed or variable. They are slightly higher than normal rates by approximately 0.5% - 1% depending on the lender and product.
• Prior to Sept 2007 you could not borrow against any property within a super fund and the property had to be commercial. Residential properties are now ok as is gearing.
• Potential better tax advantages with gearing within a super fund as opposed to outside a super fund. (please seek independent financial and accounting advice!!)
• This is aimed more at the accumulator market (40-55yrs) as opposed to those looking to retire in the short term.
• No need for personal guarantees from beneficiaries
• Great for those with large super balances and little or no equity or borrowing capacity to invest in their own name.
Be aware that a lot of accountants are not across this space properly and some lenders do this better than others. Please call me with any queries, I am happy to help further!
© RWSP In-house Newsletter, July 26, 2010
Gold Coast News :
It’s The Little Things
Wherever you live on the Gold Coast you’ll have easy access to some of the most pristine beaches in Australia – 70km of coastline – plus dining and shopping experiences enjoyed by the thousands of tourists who visit every year. Living in paradise rings true in Australia’s sixth-biggest city.
© The Gold Coast Property & Lifestyle Guide, March 11-17, 2010
Boaties To Get New Watering Hole On South Straddie
More than a million dollars will be spent creating a low-key destination for boaties left with nowhere to go on South Stradbroke Island after the Tipplers resort closure. Bruce Nicholls, who operates a range of tourism ventures including Tall Ships sailing cruises, revealed he intended to create a new resort-style facility on land he and his wife owned next to the McLarens Landing function venue. The increasing number of boaties visiting McLarens Landing since the closure of Tipplers had encouraged him to move ahead with development plans. The facility would be designed so visitors could easily pull up in their boats and jetskis to grab something to eat and drink before heading home.
© The Gold Coast Bulletin, February, 2010
Coast Taking Off, Set To Leave Brisbane Behind
Airline services out of the Gold Coast will double in the next five years as Jetstar prepares to make the city one of its main hubs. The Gold Coast will surpass Brisbane Airport within the year with the number of Jetstar staff based in the area and there are plans to increase its engineering base here too.
Jetstar revealed that Asian super hub Singapore would most likely be the next international destination linked with the Gold Coast, opening up huge markets in China and across South-East Asia. “We’ve had 35 per cent growth in the domestic market…at a 95 per cent load factor. Gold Coast is one of our most important destinations in our network, it’s one of our largest, it’s one of our most significant investments, and it’s our fastest growing.” Jetstar CEO Bruce Buchanan said he would focus on consolidating its existing Japan and New Zealand markets, but then the world was his oyster.
© The Weekend Bulletin, March 13-14, 2010
Low-Fare Leap For Airline
Tiger, which uses Gold Coast Airport, carried 437,000 passengers in February this year, up about 90 per cent from the 230,000 it carried the same month 12 months ago. Load factors, which measure the percentage of total seats available, rose to 5 per cent in February, from 79 per cent the same month a year ago. The airline is due to start flying from Brisbane to Melbourne, Adelaide and Rockhampton this month. Tiger, operates 33 destinations in 11 countries. In the 12 months to February, Tiger carried 4,708 million passengers, up 51 per cent from the prior corresponding period. Tiger began flying in Australia in November 2007, based from Melbourne’s Tullamarine Airport and Adelaide.
© The Gold Coast Bulletin, March 12, 2010
Broadwater Facts
- The council is committed to spend $1.2m in 2009-10 on dredging and marine maintenance.
- The sand that needs to be pumped from the Broadwater is estimated to be worth $40m.
- State Government and Gold Coast City Council last year agreed to commit $1.5m annually on dredging and maintenance in the future.
- The Queensland Government spent $1.3m in 2008-09 on maintenance dredging.
© The Gold Coast Bulletin, April 17, 2010
Population To Hit 55m By 2050: Triguboff
Billionaire property developer Harry Triguboff believes Australia's population will soar to 55 million by 2050, but hopes it will reach 100 million. With a new person being added to the country's total population every minute of the day, Australia's population growth is faster than Britain, the US and the EU. Our population growth is twice that of China. The growth is being driven by more babies and immigration.© The Sydney Morning Herald, January 25, 2010
Whales on the Move
The first of 13,000 whales expected to migrate south along the east coast are now off Hervey Bay. Sea World Whale Watch said whales would rest their calves off the Gold Coast. Last season they estimated numbers around 11,000 but this year there could be anything up to 13,000 adult and juvenile whales passing through. The mothers use the shallow waters off the Coast and Hervey Bay to rest and fatten up their calves, which drink around 400 litres of milk a day.
© The Gold Coast Bulletin, July 16, 2010
Solving Chinese Puzzle
More than 100,000 Chinese tourists are expected to arrive on the glitter strip in the next 12 months. Recent figures revealed the Chinese market had increased by a whopping 15 per cent on the Gold Coast, compared with 2.8 per cent Australia-wide. 54 million Chinese travel overseas each year.
• Chinese people focus on building a sincere relationship before negotiating business deals
• Learn to say ‘hello’ in Chinese.
• Mutual respect must be established before doing businessThere is no doubt the Chinese market will grow, it will double in three years. If the city could attract the ‘five-star traveller’ from China then the city would receive a big economic injection. There are more millionaires in China than Australia has people.
© The Gold Coast Bulletin, August 16, 2010
Gold Coast Rapid Transit Project Update
The Gold Coast Rapid Transit project will be the first light rail network in any regional Australian city and is part of managing the enormous growth and increasing traffic demands that has occurred in Australia's sixth largest city. Ultimately, the light rail system will connect Helensvale to Coolangatta, which is approximately 40 kilometres in length.Stage One of the $949 million project will deliver a 13 kilometre light rail corridor connecting the Gold Coast campus of Griffith University and the new 750 bed Gold Coast University Hospital to Broadbeach, passing through the key activity centres of Southport and Surfers Paradise. There will be 16 stations along the Stage One route, with 11% of the Gold Coast population living within 800 metres of the system, a further 50,000 to 60,000 overnight visitors will also have easy access to the system. Light rail will go where people live and work and will add greatly to people movement in the corridor. By connecting neighbourhoods, community centres and retail precincts, access to these areas is possible and desirable without using cars.
Construction will commence in mid 2010 with major construction along the corridor from 2011. For information on the project visit the web site www.goldcoastrapidtransit.qld.gov.au
© Ray White Commercial Newsletter, August 2010
MM Real Big Deal
January’s Magic Millions race day promises to be the biggest yet when a seven-year deal is signed this week. The deal means Magic Millions stays on the Gold Coast until 2017 and the surety will allow for bolder plans. The final draft between the Gold Coast Turf Club and Magic Millions has been agreed upon. “With the Queensland Events money being used for marketing, this January will be the biggest Magic Millions ever,” said GCTC CEO Grant Sheather.
© The Gold Coast Bulletin, July 20, 2010
Did You Read:
Twiggy’s Our Richest Man
Iron ore magnate Andrew Forrest has more than doubled his wealth to reclaim the title of the nation's richest person from gaming tycoon, James Packer, according to the latest Australia rich list published by Forbes Asia. Mr Forrest's net worth soared by $2.71 billion, or 149 per cent, to $4.53 billion in conjunction with the stock of Mr Forrest’s Fortescue Metals Group, which was boosted by rising commodity prices and China’s strong demand for minerals. Mr Forrest, 48, topped the rich list in 2008 but dropped to fifth in 2009.
Mr Packer, 42, fell to third on the list despite increasing his wealth to $3.87 billion from $3.42 billion in 2009. The founder of shopping centre operator Westfield Group, Frank Lowy, retained second position. Mr Lowy grew his fortune by almost 30 per cent to $3.98 billion as shares in Westfield recovered from a slump during the worst of the global financial crisis and rose 70 per cent in the last year.
The richest woman was another iron ore miner 56-year old Gina Rinehart, who took seventh spot on the list, after her fortune rose 33 per cent to $2.21 billion. Collectively, Australia’s wealthiest individuals lifted their fortunes by 45 per cent to $53.9 billion in the past year, with more then half adding to their wealth.
Australia’s 10 Richest People:
Andrew Forrest $4.53 billion
Frank Lowy $3.98 billion
James Packer $3.87 billion
Harry Triguboff $3.33 billion
John Gandel $2.66 billion
Kerr Neilson $2.44 billion
Gina Rinehart $2.21 billion
Anthony Pratt $2.16 billion
Leslie Ann Wilson $1.72 billion
Lindsay Fox $1.66 billion© The Gold Coast Bulletin, March 5, 2010
Economist: We’re In Good Shape
Australia is positioned enviably in the global economy but growing ties to China also expose it to risks, a US-based economist says. Vanguard Investments' chief economist Joe Davis advised that Australia had proved to be one of the most resilient developed economies through the global financial crisis. Its diversification had been a significant factor in its success. Mr Davis forecasts long, slow recovery from the global financial crisis, but said investors still could earn good returns if they stick to long-held investment principles, such as patience and diversification. Vanguard Investments manages more than $1.4 trillion in assets around the world.
© The Gold Coast Bulletin, March 11, 2010
Execs Share The Wealth
According to BRW magazine's 2010 Executive Rich List, the wealth of Australia’s richest 200 executives has surged as a result of the rising share market. The total wealth of the executives climbed to $35 billion this year from $20.3 billion last year. With total wealth on the Executive Rich rising by about 72 per cent, the 200 wealthiest executives and managers have beaten the market. The minimum entry level for the list was $9.6 million, compared with $6.4 million in 2009. The industry producing more rich executives than any other was the resources sector, with 47, followed by the financial services sector, with 37.
The executives are drawn from Australia’s top 500 companies. Mr Murdoch, News Corporation’s chairman and one of seven billionaires on the lost headed the rankings with a shareholding worth $5.96 billion, compared to $3.38 billion last year. Andrew Forrest, founder and chief executive of iron ore miner Fortescue Metals Group, was second with $4.769 billion, up from $2.37 billion last year. Gambling and media tycoon James Packer was third, with his shareholdings in casinos operator Crown and Consolidated Media Holdings at #3.40 billion. Only six women made the list, led by share registry Computershare executive director Penelope Maclagan, who had shares worth $182.7 million.
© The Gold Coast Bulletin, March, 2010
Did You Know:
• When you blush, the lining of your stomach also turns red.
• The average person laughs 13 times a day.
• Snails can sleep for three years without eating.
• If NASA sent birds into space they would soon die as they need gravity to swallow.
• The first seeing-eye dog was presented to a blind person on April 25, 1938
• A chicken loses its feathers when it becomes stressed
© The Gold Coast Bulletin, July 13, 2010
• Tourism expenditure totalled $3.9 billion on the Gold Coast in the year ended March 2010 with four million tourists flooding into the city.
• The Gold Coast has been built on tourism and most people that reside here came here as tourists.
Trying Out Wi-Fi In The Sky
In-flight Wi-Fi is not yet a commodity, but it is no longer a rarity. Most domestic airlines in the US have been upgrading their fleets to offer the service more widely, to the point where nearly one-third of the roughly 2,800 aircraft in that nation’s passenger fleet are equipped with Wi-Fi. A Wi-Fi enabled device like an iPhone, incurs lower charges than the fees charged by airlines. Connecting to the Internet during a flight is the same, you log on, open an account and type in your credit-card numbers.
You can connect at 10,000 feet, or about 20 minutes into the flight; the service automatically shuts down during the descent. Laptops, iPads and netbooks: $5 to connect for 90 minutes, $10 for three hours and $13 for more than three hours. Passengers with Wi-Fi enabled mobile devices pay the same $5 for under 90 minutes, but they pay $8 for anything beyond that. A one-day pass costs $13, no matter what device you have, and a one-month pass is $15 for Wi-Fi users with mobile devices and $40 for laptops.
The domestic carrier with the greatest number of Wi-Fi enabled planes is Delta, with nearly all its 500 planes offering the service. Virgin America’s entire fleet of 28 planes has the service, and Alaska Airways. Unfortunately, if you are flying internationally with a Wi-Fi enabled device, your chances of logging on during a flight have been virtually non-existent. Domestic carriers in the United States don’t think passengers will accept such noise as mobile phone chatters at high altitude, so they block technologies such as Skype.
© The Bangkok Post, July, 2010
How emails Are Eating Into Our Working Lives
Evidence is mounting that email traffic is affecting workplace performance. The result is a downturn in output. Results indicate email has begun to dominate professional lives. Work-related emails tend to invade evenings and weekends. The drive to respond to emails affects the performance of workers.
It takes an average of 64 seconds to recover your train of thought following an interruption by email. If people check their email every five minutes, they waste 8½ hours a week. On average, workers take one minute and 44 seconds to read and respond to an email, and 70 per cent get a reaction within six seconds. The 4000-year Story Of How Email Came to Rule Our Lives noted the 77 per cent of office workers and company owners agree that email downtime causes major stress at work.
© The Weekend Australian, August 14-15, 2010
What’s On:
There Are More Than 300 Attractions On The Gold Coast.
The Rainforest Skywalk is a stable, hi-tech steel structure that allows visitors to move along the elevated walkway through the beautiful middle and upper canopies and then descend into the lower canopy. Set amidst 12hs of rainforest alongside tumbling creeks and rock pools, visitors start the walk from the Rainforest Eco Gallery and wander past rock pools, a butterfly look-out, local history information and sheltered rest areas along the way until reaching the amazing cantilever. This is a 40m long span soaring 30m above the valley, with spectacular views over the creek and the rainforest canopies below. The skywalk is open from 9.30am to 5pm each day, except Christmas. Cost: Adults: $18.50, children: $9.50. www.rainforestskywalk.com.au
© The Gold Coast Bulletin, April 15, 2010
Newsletter Quotes 2010:
- "A house is made of walls and beams; a home is built with love and dreams." Dr William A Ward
- "Happiness comes through doors you didn't even know you left open" - Unknown
- Meeting interesting people depends less on where you go than who you are.
- Life is what happens to you while you are busy making other plans” - John Lennon (Beautiful Boy Album- Double Fantasy)
- “Happiness cannot be travelled to, owned, earned, worn or consumed. Happiness is the spiritual experience of living every minute with love, grace and gratitude” - Denis Waitley
- ‘Good clothes open all doors’ – Thomas Fuller
- ‘Every generation laughs at the old fashions, but follows religiously the new’ – Henry David Thoreau
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‘Fashion is not frivolous. It is a part of being alive today’ – Mary Quant
Our 'Capital' Growth
The local population is predicted to double by 2050 to 1.2 million thanks to record interstate migration, unprecedented births and the nation’s lowest death rate. Australia would reach 22 million people by December, with cities like the Gold Coast leading the way. The Coast, with 630,000 people could eventually overtake Adelaide, which has 1.2 million people. Based on the current growth rate, the country’s population will have more than doubled to over 44 million by mid-century.More people were moving to Queensland than any other state and most were settling in the southeast. More women today were not having children, those who did start a family expanded their brood by having another ‘for the country’. Gold Coast Hospital delivers 3500 babies a year – that is expected to rise to 5000 by 2021. The Gold Coast is Australia’s sixth biggest city in Australia’s fastest-growing state.
© The Gold Coast Bulletin
Isle Planned as little bit of Europe
It was transformed from a swamp to live up to the beauty of its European name, The Isle of Capri, (the island in Italy's Gulf of Naples) was known as 'the western bank of the Nerang River opposite the bowling club' before adopting its name, about 1957. With dairy farming and sugar cane being the main use of the land since European settlement on the Coast in the 19th century, a Russian migrant decided to cash in on his piece of real estate gold in 1957.
Mr Small was renowned for founding Malvern Star bicycles and later became one of Gold Coast's most memorable mayors when he marshalled 5000 civilian volunteers and 187 soldiers to fill and place thousands of sandbags along an eroded beachfront after a cyclone in June 1967. He bought Isle of Capri for £90,600, which was a record price at the time. An £800,000 development project then started in 1958 which raised the land half a metre to 1m above flood level.
The bridge connecting Surfers and Isle of Capri was part of the development plan as well as a deep canal being cut around the back of the land to make an island. Mr Small saw the Isle of Capri becoming a site of Venetian elegance with about 1900 home sites with water frontages and shopping by boat.
© The Gold Coast Bulletin
NEW DETAILED SUBURB DIRECTORY ON WEBSITE
The Gold Coast's premier website, goldcoast.com.au, is an extensive suburb guide of 70 suburbs that are listed with their own page full of useful information for residents, would-be residents and investors. It is the biggest and best Gold Coast online guide to the city's suburbs.
The site includes information on local schools, the nearest shopping centres, transport, medical centres and recreation facilities specific to each suburb.Information on home and unit prices, rental yields, population, and the suburb's make-up are also included along with detailed maps. It's designed to be a tool for people who want information on their suburb, whether they are planning to move in or have lived there for a while.
The suburb guide can be found under the real estate section menu of www.goldcoast.com.au.
© Gold Coast Sun, August 2008
Halfpenny for a Piece of Paradise
A halfpenny was all you had to pay for close to half a hectare of land in Currumbin, 150 years ago. Currumbin, which means ‘high up’ or ‘place where high trees grow’, became home to the first settlers in the mid-19th century when timber-cutters went in search of cedar and rosewood before cattle grazing and banana growing became important to the township. For the record house prices now average $600,000.
© The Gold Coast Bulletin, February, 2009
IT'S ALL ABOUT PRESENTATION, PRICE AND MARKETING
"Property should be generally a medium-to-long-term investment. While the market is soft it does present a lot of opportunities. " Rare and tightly held properties fetch a premium. The secret to any good sale has three aspects: pricing, presentation and marketing.
"If the price is right - bearing in mind what other similar properties in the area have sold for, and taking into account the state and style of your property - The best prices come if a sale occurs in the first 28 days, people who hold onto their homes hoping, as the months pass, the offers may improve, invariably end up being forced to take a lower price. "It's important that the price is attractive in the first place. Then it might escalate through competition by 5 to 10 per cent. That's the premium we aim for."
Second, good presentation is critical. "It's important to try to make people fall in love with it from the beginning, the first impressions," Top tips include de-cluttering your home, and styling it for maximum impact in photographs. There's so much competition for unrenovated properties that people end up paying a premium for them. It's worth furnishing the property nicely prior to the sale. It has to have an emotional appeal, even a wow factor, and spending more on accessories the higher the value of the home. Placing new furniture, beautiful accessories, better lighting, and gorgeous new bed linen. "It'll then reflect in the sale price."
The third element - marketing - should be the best campaign a vendor can afford. "It's important to find every potential buyer in the marketplace,". "If you miss even one buyer, that could cost you $10,000 at an auction." Good, provocative photographs of properties have assumed a new priority. Bigger pictures now, rather than words, images that are aspirational, that catch the eye and that convey an impression of price.
Good agents are increasingly coming into their own as the market continues to slow. "Targeting people, databases and permissive marketing are all important."
© The Australian Financial Review, July 2008
HOMES BOOM - JUST ADD WATER
Property in the path of new transport infrastructure and in water-rich locations is emerging as new real estate hot spots. The Tugan Bypass has been dubbed the most influential piece of new transport infrastructure in Australia, and suburbs around and south of it are set to boom.
Water-rich Canungra and the Northern Rivers of NSW made it on to the latest list of property hot spots, because the both get bucket loads of rain every year. All have been identified as prime property investment hot spots by national property researcher, Terry Ryder. Canungra and the NSW Northern Rivers region were included in a list of water-rich locations in the "Oasis Change" study as places well placed to enjoy a property boom on the back of plentiful water supply. Canungra was named one of the top water-rich hot spots. "It made the hot list because it gets such good rainfall, sometimes too much rain. Places like Canungra, with good water security, are going to be top of the list for many property investors in future. Few things drive up real estate values better than new transport infrastructure, and is now the number one factor in determining future property hot spots. The greatest beneficiary of the Tugun bypass will be the Tweed Shire, as well as places such as Ballina and Yamba further south.
On the Gold Coast itself, the beachside suburbs of Tugun and Bilinga will benefit from decreased traffic volumes and noise in their area as a result of the bypass." Mr Ryder said. He said Australia as a whole was on the verge of a massive new commitment to spending on transport projects, and property investors looking to pick the next property hot spots should be buying in the path of progress.
© The Gold Coast Bulletin, July 2008
MEDIA-SHY ORACLE CHANGES TUNE
Buffett drops reticence to share his thoughtsWith the financial world in turmoil, Buffett mania is rampant. "He is the rock star of the industry. If there was a rating agency for investment gurus, Buffett would be rated triple A." His investment secrets (don't buy what you don't understand): the US election (Obama is his choice); the economy (the US is in recession); interest rates (no need for more cuts); the housing slump (more pain ahead). Other subjects include the Bear Stearns bailout (it averted a financial meltdown); the US government stimulus package (use the cash to retire debt); the credit crisis (the effects are far from over); the US dollar (it will fall further); and succession plans at his holding company Berkshire Hathaway (there is a short-list of candidates); taxes (the rich should pay more). His company's annual shareholder meeting is known as the Woodstock of Capitalism. Two years ago, he gave away the bulk of his wealth - estimated at $US62 billion by Forbes magazine - to the Bill and Melinda Gates Foundation when he dies. "In turbulent times, he is an oasis of common sense and tranquillity." Berkshire's biggest asset is Buffett; his brain, his personality. He educates investors by sharing his insights in his fun-to-read and easy-to-understand essays or investment that masquerade as his annual report to shareholders.
Only buy stocks of companies you understand;
Buy businesses not stocks;
Buy when people are fearful.
Sell when people are greedy - all staples of his public statements.
Why people listen to him
- He is arguably the greatest investor of all time, Wall Street's version of Tiger Woods.
- Forbes magazine has just listed him as the richest man in the world, estimating his net worth at $US62 billion.
- Since 1965, Berkshire Hathaway has compounded wealth at an annual rate of 21.1 per cent.
- He is just like you and I. He stills lives in the Omaha house he bought in 1958 for $31,500.
- Buffett is known for buying when assets are on sale.
- He has cash to do deals
© USA Today, Weekend Bulletin
KEY DEVELOPMENTS DRIVING THE GOLD COAST ECONOMY INCLUDE:
- Increased Gold Coast Airport passenger numbers - with direct flight to Malaysia, Japan and New Zealand
- Southport Central - a $700 million high-rise
- Surfers Paradise Hilton - a $700 million development
- Soul - a $850 million high-rise
- Pacific Fair and Robina Town Centre - both with more than $200 million expansion and refurbishment plans
- Varsity Lakes - a 343ha hi-tech commercial precinct
- Coomera - will be a city of 70,000 residents by 2022
- Murwillumbah - is expanding rapidly as a second service city for the Gold Coast
WHY INVEST ON THE GOLD COAST?
LocationThe city of the Gold Coast is 1,401 km2 in area, and stretches from Beenleigh in the north to Mount Tambourine in the west and south to Coolangatta, and faces the Pacific Ocean. It is Australia's premier tourist destination and is the country's sixth largest city. Surfers Paradise is 80 kilometres south of the Brisbane International Airport. The Gold Coast is a world class location with over 40 kilometres of unpolluted beaches and protected inland waterways, all set against a back drop of spectacular National Park scenery.Population GrowthThe Gold Coast is the fastest growing municipality in Australia and has been for many years. Currently the city is growing by 3.5% per annum and has now reached a population of more than 507,000. By the year 2026, the Gold Coast is projected to be home to over 760,000 residents.TourismThe Gold Coast attracted approximately 4.58 million visitors during 2006/07, and approximately 5.9 million domestic day trippers. Gold Coast Airport has experienced continued passenger traffic growth, with total passengers numbers reaching approximately 3.7 million for the 2006/07 financial year.Residential MarketsThe median cost of a detached house on the Gold Coast during the six months ending 30 June 2007 was $432,500. This is an increase of 76.5% from five years ago. The median cost of a residential unit on the Gold Coast during the same six month period was $340,000, an increase of 72% from five years ago.EmploymentQueensland's unemployment rate for September 2007 was 3.6%, just slightly above its lowest level of 3.5% in August 2007, and well below the national rate of 4.4%. The overall unemployment rate for the Gold Coast at the June 2007 quarter was 4%.Commercial marketThe Gold Coast commercial market shows continued demand for property with limited availability of quality stock.SitesThe supply of suitable development sites along the coastal strip of the Gold Coast is fast diminishing and amalgamation is becoming more difficult.
- It is the fastest growing municipality in Australia
- It has 4.5 million visitors annually
- There is a need to create 6,900 new dwellings or 133 new dwellings per week to satisfy population growth
- The median cost of a Gold Coast home is $432,500. Priced have risen 76.5% from five years ago
- The medium cost of a Gold Coast unit is $340,00. Prices have risen 72% from five years ago
- Office space vacancy is sitting at 5%
- The Gold Coast offers a lifestyle which is world class
BETWEEN THE LINES
Invest in property. Everyone wants it, everyone needs it, wars are fought over it and they're not making any more of it. It's always going to be in demand.
PROPERTY TIPS
Learn how to land a fortune in property - real wealth can be created through property and essentially, property investment performance means minimising out-of-pocket expenses and maximising potential capital growth. Apart from the cyclic nature of the property market and the locations, there are several factors important in identifying where will be significant capital growth. The key is understanding population growth and migration patterns. Other market forces to consider include supply versus demand for housing, the changing demographic profile, economic activity, affordability and property type.
© Gold Coast Sun, February 2008
COAST ON TOP OF THE WORLD
The Gold Coast is the fastest-growing place in Australia, and it's music to the ears of property investors. The Population Growth Report, a study of national demographic trends, made precisely the same finding 18 years ago.
New figures confirm that the `demand versus supply' scale is tipped in the investors' favour.More people moving here means more demand for homes. That means upward pressure on rents and property values.
KPMG demographer, Bernard Salt, said the Gold Coast `has reasserted its authority as the nation's premier growth area' with a population of 507,430 residents.
Statistics how the importance of getting the location right when buying a property. And obviously lifestyle is a major consideration on the Gold Coast.
Some examples of Gold Coast properties which offer a special lifestyle ingredient include:
- Beachfront: Knockdowns are fetching several millions of dollars.
- Beachside: Properties a short walk from the ocean are experiencing good growth.
- Riverfront: Nerang (or main) river homes can be worth two to three times more than dry blocks in the same area.
- Canalfront: Some pockets of canalfront markets have outperformed beachfront.
- Lakefront: These properties cater to buyers who want to enjoy a water view but aren't necessarily into boating.
- Golf course frontage: Golf courses in premium areas can be a catalyst for capital growth for surrounding properties.
- Hinterland: The Gold Coast hinterland allows residents to make a scenic tree change or hill change without being far away from the sea.
Views: Whether it be the high-rise skyline, a glimpse of water or a sweeping view of the hinterland, buyers will pay more for a good view. Australians' love affair with sun, surf and sand is growing stronger, and the Gold Coast is the most popular choice by people wanting to make a `sea change'.
© The Gold Coast Bulletin
WHAT IS THE NEW SUSTAINABILITY DECLARATION?
It is a compulsory checklist that must be completed by the seller when selling a house, townhouse or unit from 1 January 2010.The declaration will inform buyers about the sustainability features of a property and increase community awareness of the value of such features.The declaration identifies the dwelling's environmental and social sustainability features in four key areas:
• Energy
• Water
• Access
• Safety
The declaration does not form part of the contract of sale. However, under the new legislation, from 1 January 2010 real estate agents and private sellers cannot publish an advertisement for the sale of the property unless the advertisement includes information about where a copy of the sustainability declaration can be obtained.The seller must ensure a copy of the sustainability declaration is visibly displayed at the site or in the dwelling.The declaration aims to increase awareness about sustainable housing features when a property is marketing for sale. It is anticipated that the declaration will help promote the sustainability of a home and become a key marketing tool for real estate agents and private sellers.Sustainability declaration is available on the Department of Infrastructure and Planning website: www.dip.qld.gov.auThe declaration is a simple, self-assessable checklist that can be completed by a property owner.For further information
Department of Infrastructure and Planning
PO Box 15009 City East Qld 4001
Tel: +61 7 3239 6369
Fax: +61 7 3237 1248
