News Archives - Page 3 of 6 - Lime Property Solutions

May 17

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More Massive infrastructure spending for the Gold Coast

By Hugh Frame | best investment, Economy, Investment, News, Property Research, rent | No Comments

More Massive infrastructure spending for the Gold Coast

It’s very much changed days since the Global financial Crisis for the Gold Coast as More Massive infrastructure spending for the Gold Coast is announced.

Outside of Sydney, Australia’s sixth largest city has shown the best capital growth in Australia over the last few years and all pointers are that it’s not going to stop for some time.

More Massive Infrastructure spending for the Gold Coast Artist’s impression of new Casino

Even the most conservative of commentators is suggesting that over the next twelve months, both weekly rents and average dwelling prices will rise and maybe substantially.

The local population is growing, vacancy rates are very low, employment growth is around the highest in Australia thanks mainly to the huge increase in our tourism industry since the lows of the GFC and the massive infrastructure projects that are taking place from the spending on transport links like the new light rail project, the new town centre and other infrastructure being built around Coomera, the upgrade of the universities and airport and of course, the 2018 Commonwealth Games, just to mention a few, and now a possible $2 billion to be spent by Crown on Jupiters Casino.

The Star Entertainment Group and its Hong Kong partners may build up to five new towers with 3000 hotel rooms and apartments on the Gold Coast as part of a $2 billion master plan centred around the expansion of its ageing Jupiters casino.

Construction of a proposed 200-metre high hotel and apartment tower, which includes 350 apartments and 700 hotel rooms of 4.5-star quality, will start in 2017. Four further towers may be built at two-year intervals depending on demand for the initial tower.

Negative Gearing proposed change by Labor would be a mistake

By Hugh Frame | best investment, Economy, Home Loans, Investment, Negative Gearing, News, Property Research, Real Estate | No Comments

Negative Gearing proposed change by Labor would be a mistake

Negative Gearing proposed change by Labor would be a mistake according to John Symond of Aussie Home Loans fame.

Aussie John has been taking it on the chin as he is being seen as having done a u-turn on the issue. Basically this whole story is based on the fact that no one in this democracy who is in the public eye should ever be permitted to change their mind. Aussie John has just committed this terrible sin!

Negative Gearing Proposed change by Labor would be a mistake – Aussie John

When we look at the context of Mr Symond’ apparent u-turn, it makes the circumstances of his turn around even more understandable. Placed on a panel on ABC the entertainment programme Q and A way back in 2013, Mr Symond was asked by a single mother in Perth about what could be done with negative gearing to assist people like single mother’s get on to the property ladder? Perth was having a long interrupted run in the mining boom and house prices in Perth had gone up by over 200% in the previous 10 years. “Aussie John” did suggest in a sympathetic manner that maybe a look at negative gearing and all of the Australian taxation system may, in fact, help.

Three years later, mining boom well over, an Australian Economy not doing too badly after our mining boom thanks mainly to our hugely increased residential construction industry, the hot topic of the day being negative gearing and the effect it may have on the Australian property market if changed and a leading figure in our residential lending area is asked to comment on the topic ……. plenty of time to think and analyse in a pretty different financial environment from 3 years ago and HE CHANGES HIS MIND!

Is this really a story of deceit and unreliability? Or maybe it’s just a story of an experienced property person understanding a changing market – after all, that’s how he really made his millions, understanding a dynamic market! He is not an elected representative promising not to introduce a carbon tax or promising to make no cuts to the ABC budget, he’s a highly successful and clever property guy who really understands what slight changes in our economy can do to a very dynamic market place.

Mr Shorten, instead of criticising this man for supporting one political party over another, maybe it would be better to listen to what he has to say and act on his advice.

First Home Buyer’s assistance

By Hugh Frame | Economy, finance, Financial, Home Loans, Market, News, Property Research, Real Estate, Research | No Comments

First Home Buyer’s assistance – The state gives a leg-up into home ownership

On the East coast we all know about the first home owner’s grant and the State assistance given with stamp duty but in the West first home buyer’s assistance can include the state gives a leg-up into home ownership by taking a share of the new property!

First Home Buyer’s assistance in WA

Kelmscott in Perth is one of the many properties in the scheme

During the mining boom as property shot up in value in WA, a new State scheme was sponsored by the WA government. Singles earning between $50,000 and $70,000 a year and couples earning less than $90,000 a year can buy a house, with the state government as a ‘silent partner’ paying up to 30 per cent of the cost.

Over 1000 West Australians on ‘modest incomes’ have partnered-up with the government to buy new homes under a revitalised shared ownership scheme.

The owner may have an 80/20 or even a 70/30 mortgage with the state government of Western Australia. The owner only pays mortgage on the remaining amount and can buy back the government’s portion at anytime in the future. The home is entirely the owners, free from inspections or any other type of tenancy rules.

The properties in the scheme are freshly built and range from one-bedroom units to four-bedroom homes spread throughout Perth suburbs hat include sought-after suburbs such as Subiaco, with some also available in regional centres like Albany and Bunbury.

The scheme was instigated in 2011 after the rapid rise in house costs paralleling with the mining boom which forced many moderate income earners out of the market. That coincided with the 2010 peak in the number of people waiting for WA Department of Housing rentals at more than 24,000.

The scheme is well received in WA and is an obvious real assistance to young people trying to enter the housing market for the first time. I’ve never heard any politician in NSW mention this scheme. Is this something that Sydney could consider to really help the first home buyer with a real foot-up? Full story: http://goo.gl/VbI8hg

May 04

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The Gold Coast – A place for property investors

By Hugh Frame | best investment, domain, Investment, Market, News, Property Research, Research | No Comments

The Gold Coast – A place for property investors

Sydney has been the best investment market in Australia for the last few years but close on its tale for capital growth in the last couple of years has been The Gold Coast – A place for property investors!

The Gold Coast was voted one of the top three places in the world to buy a second home in by the well-respected Knight Frank annual global The Wealth Report 2016, that strip glitz along 57 kilometres of Queensland coastline placed in the same international league as places like the Cote d’Azur in the south of France, and Spain’s Ibiza. surfers-sunrise

The Gold Coast suffered a major downturn in prices immediately after the Global Financial Crisis. There were a few major factors that saw the Gold Coast investment property market take a big dive but the principle two were reasons were an oversupply of luxury units and secondly the tourism based economy collapsed as tourist could no longer afford to come to Australia because of the high dollar (and of course many lost a lot of money in their own home markets).

Australian tourism is again riding a high wave and job growth over the last 3 years in the Gold Coast has been close to the strongest in Australia. Infrastructure projects have been happening everywhere from the billion dollar plus light rail system (completed a couple of years before Sydney even started!) to the new roads, and New Town centres such as the massive expansion happening in Coomera. Add to this the expansion in the University and medical precinct expansion, airport expansion, the upgrade of the Casino and the up and coming Commonwealth Games, just to highlight a few, it’s little wonder we are seeing increasing prices, increasing population and a vacancy rate hovering around just 1%.

You can read more by clicking here: http://www.domain.com.au/news/golden-future-of-the-coast-20160426-gof1v1/

The Gold Coast – A place for property investors

The final paragraphs are worth reading – “With both construction and land costs significantly lower than in Sydney and Melbourne, prestige home owners and buyers can get significantly more for their buck. As a result interest is growing exponentially from interstate in what’s been named the fastest-growing major non-capital city in the country by property marketers CBRE. Two years ago, 10 per cent of inquiries for properties on the Gold Coast were from the southern states, says Gold Coast director Nicholas Clydesdale. “Now it’s over 40 per cent and it’s growing all the time.”

What the experts say

“It’s certainly a bonus if [HNWIs] can see some upside in the capital value of their asset over the holding period.” – Michelle Ciesielski, Knight Frank

What’s on trend

By the middle of this century, the Gold Coast … will “be a city of truly metropolitan scale”. – Bernard Salt. KPMG

What to look for

“We’re now expecting very strong growth.” – Marwan Rahme, Kanebridge

May 03

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Signing a contract for an investment property

By Hugh Frame | best investment, conveyancing, finance, Financial, Investment, News, Properties | No Comments

Signing a contract for an investment property

In nearly every case where a client is buying an investment property, the client is working through a real estate agent and when the initial decision to buy is made the clients are signing a contract for an investment property purchase. The legal side of the purchase of the investment property is, in almost all cases, handled by the client’s legal representative. The legal representative is usually a qualified solicitor or someone qualified in conveyancing. richmond terrace

The conveyancing laws differ from state to state so it is extremely important to ensure that the legal representative the client uses to purchase the property investment is qualified in the laws of the state in which you are making the purchase.

Laws from state to state differ in terms of deposit monies to be paid, the ‘cooling off’ periods of a contract, the stamp duty that needs to be paid and the timing of the stamp duty payment. In Queensland in particular, a common additional clause in a contract is a ‘subject to finance’ clause which allows the purchaser to cancel a contract if full funding for the purchase cannot be obtained through a recognised Australian lender.

The most important issue for buyer to know is that once the contracts are signed, you are working within the legal framework and any issues which occur should immediately be reported to your legal representative and the selling agent as a secondary consideration.

The recent report in the media “Selling a house in Melbourne: investors stung over trying to pull out of sale” highlights the importance of this.

The case reports that two investment property buyers seem to have informed their agent by phone and in writing that they did not wish to proceed with the purchase during the “cooling off’ period to the selling agent but did not inform their solicitor or the vendor’s solicitor. The result is that they may be up for as much as $1 million in penalties for not proceeding with the purchase.

The moral of the story is obviously ‘deal with your legal representative in all contractual issues” and don’t be caught out trying to blame the selling agent if you have not abided by the full conditions of the contract you have signed!

Full story click here: http://goo.gl/URIruO

Apr 27

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When will Sydney House prices boom again?

By Hugh Frame | best investment, Economy, News, property cycle, Property Research | No Comments

When will Sydney House prices boom again?

The question already being asked, now that Sydney house prices seem to have peaked is “When will Sydney House prices boom again?”

House prices drop in almost all of Sydney’s suburbs over the last two quarters has seen the median house price dip below $1 million.

investment property growth in six years time?

Many state that after a three-year property boom, Sydney’s house prices have fallen for the last six months indicating that the boom is clearly over. In fact, with the exception of 2012 which was a pretty ‘flat’ year in Sydney, the boom just over actually started in 2010. This makes the growth ‘boom’ period nearer to five years rather than just the last three years. Of course, the only areas that showed any good growth in from 2010 to 2013 were the Eastern Suburbs, Lower North Shore and Inner West. After the lull in price growth during 2012, we then saw the ‘ripple effect’ take hold as price increases rippled out to our outer suburbs. This was all quite predictable although the large percentage gain on median property prices over this period was a surprise to most. It just wasn’t expected to be such a big boom!

Since September 2015, when the median house price reached $1,045,000, the median Sydney price has fallen below the $1 million mark. The big question is “Where to from here?”

If history is any guide, the next boom is only five or six years away…. it nearly always is after the peak of each growth cycle.

We just need to keep a close eye on supply tightening up, Sydney population growth, the general economic conditions, unemployment and job growth, increasing rentals and affordability based on how much our average pay packets increase over the next few years. When we see all of the above begin to increase demand, then we’ll know that we are at the beginning of our next Sydney growth cycle.

Read more click here; http://goo.gl/oPgD2e

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Apr 21

0

Sydney’s rental affordability crisis for low income earners

By Hugh Frame | Investment, Market, News, rent, Research | No Comments

Anglicare’s recent survey into affordable rent in Sydney and the Illawarra has found that it getting almost impossible for couples on Newstart allowances or and single pensioners to find a rental property they can afford. It’s not much better for pensioner couples. affordable properties

If they want to live within 20 km of the Sydney, then it becomes impossible to find any investment property that can be rented by people on our lowest incomes.

The survey found only 76 properties advertised across greater Sydney and the Illawarra on April 2 and 3 would not leave someone on income support payments facing rental stress. Rental stress has been defined as spending more than 30% of income on accommodation.

This is maybe not too surprising with the huge growth in property prices reported in Sydney over the last 5 years but it is maybe more surprising to find that only nine properties were found in the Illawarra.
Read more: http://goo.gl/LuOeGT

Apr 04

0

Population increase – more property investment required?

By Hugh Frame | best investment, Investment, News, Properties, Property Solutions | No Comments

More overseas-born Australians today than in the last 120-years

The percentage of Australian residents born overseas has increased every year for the past 15 years and, in June last year, reached 28.2 per cent, or 6.7 million people. This is the highest percentage rate since the late 1800s.

population

Data from the Australian Bureau of statistics released this week shows that the percentage of people born overseas has increased again. Little wonder, with these still very large new migrant numbers the demand for housing is growing and we see more and more of our suburbs in the larger cities with median prices going over $1 million. Little wonder that low income earners are finding it almost impossible to find and rent affordable places and little wonder that our vacancy rates for investment property are still very low and below what most would term a balanced market.

A surprise for some shows that residents from the UK remain the largest group of overseas-born residents at 5.1 per cent of the population. Kiwis make up the next largest group at 2.6 per cent, followed by 2% China, 1.8% India and 1% for both the Philippines and Vietnam.

Victoria, again, welcomed the largest number of interstate migrants with a net gain of 10,200 people making it our fastest population growth state, followed by Queensland with a net gain of 8800. NSW suffered a loss of 6600 although it did received the highest number of overseas migrants totalling 66,100 last financial year so the population of NSW is still growing strongly even although we have the highest number of people leaving the state to go interstate.

Little wonder the demand for rental of investment property is increasing in various parts of the country. Keeping an eye on these figures is important in choosing the best suburbs for property investment but the numbers should also give property investors confidence in finding permanent renters for their property investment. Read more: http://goo.gl/nbrirR

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Apr 04

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Australian Real Estate Agents Aren’t so Bad!

By Hugh Frame | best investment, News, Properties, Property Research, Property Solutions, Real Estate | No Comments

Australian Real Estate Agents Aren’t so Bad when you view some of these headlines from overseas!

Some Terrible Real Estate Headlines

Government introduced the Fair Housing Enforcement Program – helps rid Real Estate industry of discrimination and ensures a level playing field for buyers of all ages, races, disabilities and economic positions!
Property is resold multiple times, making profit each time for the agent!
Government is cracking down on Airbnb rentals.
Huge Increase in Stamp duty for properties over 1.8 million!
Prices May crash as World Cup Finals move location!

All of the above are recent stories from around the word concerning property and property investment; fortunately non are from Australia! To read the full story go to : http://goo.gl/14EmKh

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Apr 04

0

Good information for your next investment property

By Hugh Frame | best investment, Investment, News, Properties, Property Solutions | No Comments

Good information for your next investment property – choosing the best design for an investment property

An increasing number of Australians over the age of 40 are turning to share housing, with this in mind we have some good information for your next investment property.

As house prices and rents climb, more and more 40 plus year-olds are finding that the only way they can really afford to rent, particularly in the inner suburbs of our cities, is to move in with a flat mate.

This should guide clients interested in property investment in their selection criteria for a good apartment. Of course, the first thing we look for is a property that will be most appealing to future owner-occupiers in the area; we consider our exit strategy before we purchase. Another critical factor to consider is the investment property’s appeal to local renters. Now with an increasing number of single mature people looking for shared housing, as well as the very significant numbers of young professionals also looking for share accommodation, it is essential to ensure that your new property investment has at least one bathroom for each bedroom.

A recent Domain article highlights the increasing number of Australians over the age of 40 turning to share housing. Their data comes from share house listings service flatmates.com.au.

Between the start of January and end of February this year, the number of people over 40 looking for accommodation on the website jumped – relative to the total number of people looking – 20 per cent year on year.

It’s not surprising when we see the median rental price for an apartment in Sydney is $500 a week and it’s not much less for a well located apartment in our other major cities.

The concept of Share accommodation is no longer just housing for those moving out of the family home or for students; sharers have become far more diverse and include anyone from young professionals, single mums to retirees and or downsizers.

It’s information property investors should note when looking for that new investment property.

News

More Massive infrastructure spending for the Gold Coast

Negative Gearing proposed change by Labor would be a mistake

First Home Buyer’s assistance

The Gold Coast – A place for property investors

Signing a contract for an investment property

When will Sydney House prices boom again?

Sydney’s rental affordability crisis for low income earners

Population increase – more property investment required?

Australian Real Estate Agents Aren’t so Bad!

Good information for your next investment property

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