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Building

Dec 15
0

Will we see Apartment prices drop in Sydney and Melbourne?

By | best investment, Building, chinese investment, foreign investment, Uncategorized | No Comments

The Sydney and Melbourne unit markets in particular have been buoyed by Chinese investors, but six months on from a bank clampdown on foreign lending, will we see apartment prices drop in Sydney and Melbourne?

The word has been that apartment prices in Sydney and Melbourne may drop because of over-supply but the real danger may be the thousands of Chinese property investors who bought apartments in Australia are now scrambling to save their investments. Already, a number of apartments bought off-the-plan by Chinese investors have failed to settle due to the buyers being unable to secure finance for settlement.

(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.

In these cases, the developer is entitles to keep the 10% deposit paid at exchange of contract and on-sell the apartment. In many cases it makes sense to reduce the price of the apartment for a quick sale. With possibly hundreds of new apartments being on-sold ‘below original cost’, this would soon affect the whole city-wide apartment market. Read more: http://www.abc.net.au/news/2016-11-28/chinese-property-investors-worried-after-big-banks-change-rules/8062530  Related Story: Tough new loan laws see Chinese investors opting for private lenders

In mid-year year, the major lenders stopped lending to offshore investors in a bid to reduce  risk. Lenders were worried by some applications with fraudulent proof of income, and wanted to rein in lending to avoid being too reliant on Chinese borrowers. These changes are now having a major impact on the property market, particularly in the foreign investor’s favourite locations in Sydney and Melbourne property investment hotspots. For the estimated 50,000 Chinese buyers involved there has been crushing disappointment. It is estimated that up to 30,000 investors are affected.

As well as our Australian lenders, China’s banks have cracked down on money heading abroad, so investors have been left trying to borrow from other Asian banks. With up to 30,000 units unable to settle, it is difficult to see why this will not affect the major city apartment markets. We are more than likely see Apartment prices drop in Sydney and Melbourne over the next couple of years.

If you want to know more about safe growth investment over the next few years contact: info@limepropertysolutions.com.au.

Aug 23
0

Melbourne’s “investor stock” apartments to upgrade

By | best investment, Building, Investment, Properties, Property Research, Research | No Comments

Melbourne’s “investor stock” apartments to upgrade.

Not before time, the Victorian Government is insisting on Melbourne’s “investor stock” apartments to upgrade. The draft design standards have been released alongside research showing 60 per cent of apartments recently constructed in Melbourne were of low quality. Interestingly this figure of 60% comes from the developers themselves who are admitting they are “not proud” of many of their recent developments.

Melbourne to improve its very poor unit design

Melbourne to improve its very poor unit design

Following on from yesterday’s blog on the large uptake of inner city units from downsizers, Melbourne CBD has been at the very other spectrum of this market. Many developers have been concentrating on increasing their profits by constructing small “shoe-box’ apartments that would not be permitted to be constructed in either of our other east coast capital cities.

It’s almost unbelievable that the new rules will insist that there must be light in the way of a window to each bedroom! Also surprisingly, every unit will require having at least one small storage cupboard; minimum 2.7m ceilings; some green space outside and bedrooms will not be permitted beside mechanical plant in order that residents may be able to sleep! This sounds all a bit third world but this is typical of some recent unit development in Melbourne. If you are not familiar with this market, have a look here: http://goo.gl/wXJWTD

The Sydney buyer has been known to complain about the small size of new units in Sydney, but at least there are minimum sizes, something the Victorian Government will still not legislate. In Sydney, one-bedrooms units must be at least 50 square metres, two-bedroom apartments at least 70 square metres and three-bedrooms at least 90 square metres.

In looking for a good apartment investment, we are always looking for units that will appeal to future owner-occupiers and not just term by term students! This means units must be spacious, have parking and storage space. We also insist on outdoor areas including an entertainment balcony. These may well be included in the new Victorian guidelines but the space constraints are likely to remain. However, there is likely to be a big improvement after Melbourne’s “investor stock” apartments upgrade. Read about the proposed changes here: http://goo.gl/iyXeDO

Jun 06
0

Property Investment with confidence

By | best investment, Building, Investment, Properties, Property Research | No Comments

Property Investment with confidence

Invitation to all readers!

 

How can you continue with property investment with confidence? It was easy a couple of years ago when we knew that the Sydney property market was just booming, now the reports on a Monday just reflects the auction clearance rate of the weekend, if the clearance rate was high then “The Boom is Back!” and if it was not so high then “House prices heading downward”. This is about the best property investment advice we are likely to get from the media! The fact is the Sydney housing price boom is over but the housing market is dynamic and prices will vary up and down a little around the current median price for the next few years. A small rise does not mean ‘Boom times are back!”  just as a small fall does not indicate ‘The housing bubble has burst”.  Both make good headlines and that is what sells newspapers!

newstead

Brisbane’s best investment property

If you are really interested in what to expect in the property market over the next couple of years, why not come along and listen to and question Paul Riga, Director of independent advisory firm Urbis — an interdisciplinary consulting firm offering services in planning design, property, social planning, economics and research.

Urbis provides the social research analysis and advice upon which major social, commercial and environmental decisions are made. Their unique mix of services provides a property market insight that gives clients a real competitive advantage. Paul will be supported by John Livingstone, Director of JGL Properties the company behind Brisbane’s most iconic new development Newstead Series. Come along and hear the story behind the planning of one of Australia’s newest and most differentiated properties.

Location: Ecco Ristorante

Address: 2 St Georges Crescent, Drummoyne

Date: Tuesday 28th June 2016

Time:  6:30pm

Complimentary food and beverages on arrival

Just email info@propertyinvest.co with your name and contact number to secure one of the limited places.

Apr 04
0

Rezone Point Piper

By | best investment, Building, Investment, Market, News, Properties, Property Research, Property Solutions | No Comments

Let’s rezone Point Piper to fit the Big Australia advocates

Australia’s population is growing faster than any other developed country, so here’s a great idea to make room for our increasing population – rezone Point Piper to fit the Big Australia advocates. Our population is now growing by one million every 3½ years.  Many Australians have doubts about this, the world’s biggest immigration program, the developed world’s highest population growth.

point-piper

Bob Carr or recent Foreign Secretary, Premier of New South Wales and friend of Harry Triguboff of Meriton fame, is suggesting we rezone Point Piper to very high density along with many other areas Sydney. Of course, this is the huge problem with growth and development; it’s a fantastic thing to have as long as it’s not in my suburb!

Mr Carr has highlighted three challenges to all supporters of a   Big Australia.

(1)   They should link their population build-up to infrastructure. State and commonwealth governments should be able to guarantee Australia would not be laying out new suburbs that leave residents beyond easy walking distance from public transport.

(2)     Big Australians need to get honest about the intensified zonings required as both Sydney and Melbourne climb to 7 million by mid-century. This is where Mr Carr makes the sensible, but tongue-in-cheek suggestion of re-zoning Point Piper to lift its population from its current 6000 to a robust 30,000, pumping up its R2 zonings to allow stepped towers rising from, five stories on Wolseley Crescent reaching 30 in Wunulla Road!

(3)   His third challenge to the advocates of Big Australia, is to link higher population growth to progress towards a sustainable Australia.  Spell out that any immigration above, say, 90,000 per annum would be dependent on certified progress in benchmarks such as stepped reductions in water use per head or carbon emissions per head.  Rapid population growth is making it harder to maintain recent progress.  More (treated) sewage means a bigger dump of nutrients into our rivers, more cars a rise in ground level ozone, more multi-unit dwellings, the return of harbour overflows. Read more: http://goo.gl/qARZP2

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Twitter: @LimeProperty1

~ Lime Property Solutions

Apr 04
0

Social insects could transform strategies for city and town planning

By | Building, Economy, Investment, News, Properties, Property Research, Property Solutions, Research | No Comments

Social insects could transform strategies for city and town planning

Ants, along with bees and other social insects, could help town planners solve bottlenecks in city infrastructure and urban renewal, Australian scientists have revealed.

social-insects

 

The business of foraging for food, building nests and trails and growing colonies were all skills from which city planners could learn.

It makes a lot of sense to me. As a child I used to be fascinated with ant nests and sometimes assisted one of my neighbours with his bee hives. Not once did I witness a bottle neck or a traffic jam, so maybe there is something in this!

We’ll soon see the difference that smart infrastructure can make in Sydney and everyone who has arrived or departed from Brisbane Airport since the new infrastructure was completed has commented on the ease of  access and egress.
Read more: http://goo.gl/p6WJGI

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Twitter: @LimeProperty1

~ Lime Property Solutions

Apr 04
0

Tourist Boom

By | best investment, Building, Economy, Investment, News, Properties, Property Solutions | No Comments

Forget about another mining boom – The Tourist Boom has begun!

There is a very interesting article just released in Business News Australia this week that is worthy of a read concerning our current and expanding tourist boom. The article was written by Nick Nicols.

FEARS of faltering Chinese growth and a global downturn are all playing in Australia’s favour with one forecaster predicting we are on the verge of a new economic boom, and one that’s likely to last for some time

Dr Frank Gelber, chief economist with BIS Shrapnel, told a Brisbane briefing that the next growth story unfolding for the Australian economy is in the services sector, and particularly tourism and education.

Both of these industry sectors are now exceeded pre-GFC levels, picking up strength after years of ‘repression’ from a strong dollar that at one stage was trading above parity with the US currency.

“We ain’t seen nothing yet,” says Gelber. “Five years from now these sectors will be booming, and I don’t use that term lightly.”

While China may be perceived as the growth market in both education and tourism, Gelber forecasts domestic travellers will be a major driver of momentum. He says education will also be a conduit for increased migration, adding to the economic growth story.

Gelber forecasts tourism regions such as the Gold Coast and Cairns will be in the sweet spot of the looming boom, driving population and construction growth.

“They will be the big growth regions of the future,” he says.

“Retail sales will be picking up, housing demand will be picking up. We will see a classic upswing, the sort of thing that we saw in the mining regions, but not as strong, not as quick and not as fickle.

“What we’ve seen now are only the beginnings of a pick-up. We’ve got a long catch-up to go to get back to where we would have been if not for a high dollar.

“If you look at tourist towns they were booming before the dollar went up, then fell into a long period of dismal, suppressed activity.

“Now the tourists are coming back, not just from overseas but more particularly domestic tourists as well. That is boosting activity across the board and it will end up boosting population growth.

Full article can be found at: http://goo.gl/9mvGTA

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~ Lime Property Solutions

Apr 04
0

Negative Gearing is here to stay!

By | best investment, Building, Economy, Investment, News, Properties, Property Solutions | No Comments

Negative Gearing is here to stay!

How many more times will we see a newspaper headline about the subject of negative gearing this year? It apparently makes great politics but how boring for the voters, negative gearing is here to stay!

Every year for the last 20 years at least we’ve had the scare-mongering, usually from the party in opposition, about changes to negative gearing laws. Now it’s become an election issue so the topic will be on our front page news until the middle of the year. Our front [page news today sees our prime minister take Labor’s policy outcomes many steps further. Not only would the Labor policy be a terrible blow to property investors, but it is really a ‘secret plan” to kill off all tax relief to all forms of investment! It has to be noted that negative gearing is a legitimate tool to use in all forms of investment and is not strictly limited to investment property only. The real wealthy use negative gearing in other forms of investment including the share market.

negative-gearing-3

 

“The Prime Minister said Labor’s policy is actually a plan to end tax deductibility on all business expenses against ordinary income, including margin loans used to buy shares, and even basic small business acquisitions such as a truck for a freighting partnership.

The assault came after the government was embarrassed when a report by the firm BIS Shrapnel, which Treasurer Scott Morrison claimed had modelled Labor’s negative gearing policy, was found to have been done before the opposition policy was released.”

And the final outcome folks – it’s all a storm in a teacup – the whole discussion will be forgotten about after the election until some bright spark brings the topic up again for a little more scare-mongering just before the budget in 2017!
Read more: http://goo.gl/iObSPv

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Twitter: @LimeProperty1

 

~ Lime Property Solutions

Apr 04
0

NO Housing Bubble!

By | Building, Economy, News, Properties | No Comments

Who’s afraid of a housing bubble?

There is no housing bubble. What a great headline in today’s media. Having just read the article, a more accurate headline would be “No chance of a housing bubble” but it just doesn’t have the same fearful ‘grab’.

Again, quite a positive article only about our two largest cities, Sydney and Melbourne property markets. One day, someone is going to present these commentators with a map of Australia which will clearly show that there are many other housing markets outside of these two cities. Read full article at: http://goo.gl/cmCiyv

Follow us on Facebook: https://goo.gl/qlVppi

Twitter: @LimeProperty1

~ Lime Property Solutions

Apr 04
0

Home Loans for the Rich and Home Loans for the Poor!

By | banking, Building, Economy, finance, Financial, Home Loans, Mortgage, mortgage rates, News, Properties, Property Solutions | No Comments

Best Mortgage Rates – Home Loans for the Rich and Home Loans for the Poor!

There seems to be an emerging pattern in the last few blogs – money makes money!

All seems very typical of the banks – always giving out free umbrellas but very quick to take them back if it starts raining!

We seem to be back to a two-tier mortgage and/or investment loan market which is basically working on the principal of the more you can actually afford, the cheaper your loan will be. Of course, the reverse is also true; the less you have in equity or income the more the banks will charge you for your investment loan.

Bottom line is, for anyone with a little bit of equity or savings and a reasonable, steady income, there are still good deals out there and it’s a great time to be buying a good little investment property!
Read more: www.smh.com.au/business/banking-and-finance/banks-get-picky-with-mortgage-deals-rewarding-cashedup-owneroccupiers-20160125-gmdx28#ixzz3yP8wj0DN
Follow us: www.facebook.com/pages/Lime-Property-Solutions/138210849608998

Twitter : @LimeProperty1 |
~ Lime Property Solutions

Apr 04
0

Lies, Damned Lies and Statistics

By | Building, News, Property Solutions | No Comments
Lies, Damned lies and Statistics –“Building approvals slump for apartments and houses”

How can someone living in Sydney or Melbourne obtain any real understanding of the Australian Property Market?
Our ‘National” Press have been bombarding us with headlines from the beginning of 2015 about some magical property boom going on throughout Australia and more recently about how this ‘boom’ has come to a sudden stop with prices rapidly going backwards.
There is a great article in the Australian Financial Review on 6th January 2015 by Mathew Cranston informing us;
“Apartment approvals across Australia have given up their record-breaking numbers, with the latest official figures showing they slumped 23 per cent in November.”
The full story can be found at: http://www.afr.com/real-estate/building-approvals-slump-for-apartments-and-houses-20160106-gm0ucv#ixzz3wWSow34X
It goes on to state that , “Sydney property prices fell for the second consecutive month dropping 2.3 per cent in December, according to CoreLogic RP Data Home Value Index.”
I can only assume this is another general piece of parochial Sydneysider reporting with the impression that Australia stretches from somewhere around the Hawkesbury river to Port Philip Bay and all to the east of the Great Dividing Range!
This following piece must also only refer to the Hawkesbury/Port Philip Bay area
“Lower level approvals is not unexpected given the higher levels of approvals throughout the whole year,” Mr Harnich said.
“This could be good for first home buyers as it may put some downward pressure on pricing and help them into housing market.”
Brisbane is Australia’s third largest city and the following is a quote from the Australian Bureau of Statistics web site –
“The trend estimate for total number of dwelling units approved in Queensland rose 0.9% in November and has risen for three months. The trend estimate for the number of private sector houses rose 0.1% in November and has risen for seven months.”
Don’t believe it…. try: http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/8731.0Main%20Features3Nov%202015?opendocument&tabname=Summary&prodno=8731.0&issue=Nov%202015&num=&view=
By definitions above, we must be expecting some growth then in Brisbane? This I could agree with!

~ Lime Property Solutions

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