Rental rates rise could worsen housing crisis

Here is an article from the paper today:

A proposed change to rates on rental properties could worsen the Sunshine Coast’s accommodation crisis, angry property owners and rental managers said yesterday.

Sunshine Coast council wants to introduce separate rates categories for principal places of residence and non-principal places of residence.

That could add about $190 a year – a 20% hike – to rates on investment properties, be they single dwellings or units.

The change aims to deliver parity between strata-titled investment units in the old Maroochy shire and single-dwelling investment residences across the region.

Property owners and rental agents said the costs would inevitably be passed on to renters.

But mayor Bob Abbot defended the decision.

Mr Abbot said the new council was facing a fiscal crisis and was attempting to spread the load.

He said minimum-rated properties delivered the biggest lump of the budget.

“It was not an easy decision,’’ he said. “Investment properties are businesses for some people and why should they run a business without paying equivalent rates to other businesses?’’

The decision may yet be challenged before the budget is formally brought down next Thursday, however.

The council’s regional manager treasury Michael Costello said the amalgamated body had been able to strike a standard minimum general rate from Teewah to Beerwah. The council had needed to bring the financial statements of the three old local authorities into one document, attempting to align differing charging methods.

Mr Costello said if the rate had not been struck, an increase would have been required to the minimum general rate.

Single homes make up 70% of total dwellings. He said modelling indicated that 20% of single dwellings across the region would be affected.

Dulong rental property owner Alan Chapman said the decision amounted to a tax on renters.

Mr Chapman said he would sell his four rental properties when leases ran out in September.

“The attitude of the local authority to affordable housing is just a platitude,’’ he said. “Property owners already pay enormous amounts to maintain their investments.”

Principal of Top Rentals on Buderim Cheryl Eggins said in many cases the increase would be passed to renters.

“I won’t be doing that with my own properties but councils should really be charging fewer rates for landlords to give tenants cheaper rents.”

 

10% of Brits say THERE’S NO PLACE LIKE OZ!

Here is a recent article which I found on a real estate website:

Bank of Scotland International has recently conducted a survey that reveals that one in ten of our British cousins would like to pack up their houses and call Australia home. The thought of emigration to Australia is at an all time high and is the most popular choice as a relocation destination for Britons. In fact, the research showed that a huge 42% of Brits are considering an overseas property or moving permanently abroad.

Over the ditch, New Zealand held court as the second favourite place to consider moving to, with 9% of the vote. North America came third with 7%.

With such a large percentage of the vote, why is it that Australia is so popular? Is it the sun, surf and sexy beach bums? (Can’t they get that in Spain??) Is it the wide brown open land that is so vastly different to England? Or is it the chance to finally see where all those convict cousins ended up?? 

The popularity of Australia in the survey follows a recent announcement by foreign exchange specialists, HIFX, that they had seen enquiries about investing in property ‘Down Under’ double in the last year.

Welcome to all you newbies!!!! Let me know if you help with anything!!!

The Whale watching season has begun

 

                               

 

 

 

Whale watching along the coastline of Queensland has become a popular attraction for visitors and locals in the Sunshine Coast, with a number of whale watching tours available in Mooloolaba.

The whale watching season generally runs from mid-June to early November, when the enormous humpback whales pass close to the coastline, during their annual migration south in the Indian Ocean, along the Eastern Coast of Australia.

Humpback whales are one the fifth largest of the great whales and adult humpback whales can measure up to 19 metres / 62 feet, weighing around 40 tonnes. This vulnerable and protected species of whale begins migrating each winter, leaving the Antarctica area at the end of April, to travel to the warmer waters of Queensland in early spring. The first humpback whales to arrive in the waters at the Sunshine Coast are usually the newly pregnant female whales, followed by mature males and then mothers with their newly-born humpback whale calves.

 

 

 

 

Renters warned to brace for hike

Sunshine Coast renters will inevitably foot the bill for council rate hikes as the extra costs are passed on by landlords.

That’s the grim news from Real Estate Institute of Queensland Sunshine Coast president Jean Hamer, who said the extra price tag of $103 to $169 each from August would gradually and inevitably be lumped on to tenants.

She said in many cases renters would have to pay every cent of the impost.

“Investment properties are like a business and these costs have to be absorbed in some way,” she said.

“So anything like this will ultimately, but not at first, be passed through.”

She said renters on a fixed-term tenancy would not cop extra costs because their rent was agreed on at a set rate.

But renters looking to move to a new house will be the first ones slugged.

“The owners can only absorb it for so long,” she said.

“The rate increase is just another nail people have to bear. First of all it goes to the investor and they will look to pass it on.”

But good tenants stand less chance of having their rents raised.

“You’ll find a lot of owners will absorb these costs as long as they can if they’ve got a good tenant because people would prefer to keep a really good tenant in at a slightly less rental price than let their property sit untenanted.”

While extra rate costs of $103 in Caloundra, $155 in Maroochy and $169 in Noosa was not much when stretched over a year, Ms Hamer said the added burden of recent interest-rate rises meant many renters would need to reassess their priorities in a home.

“They have to ask what the most important things in life are,” she said.

“Obviously a roof over your head is very important but do you really need a pool or can you live with just a backyard?

“Unfortunately it’s easy to let the rent go for one week and then get into strife.”

The most recent rental figures from the REIQ show Noosa and Sunshine Beach as the most expensive suburbs for rentals at $395 a week for a three-bedroom house.

Cooran is the most affordable suburb at $265 a week.

Three-bedroom houses in Maroochydore average $350 a week, Caloundra $350, Beerwah $300 and Coolum $350.

 

 

Which Areas are most affordable?

Hopefully this is helpful to anyone who has not yet decided on which area to live in. This information is from RP Data who obtain the prices of all unit, house and land sales from the government.

 

 Past years median sales prices for each area

 

Buderim                                    $506,000

Maroochdore                            $457,000

Maroochy River                        $533,000

Bli Bli                                        $385,000

Tewantin                                   $439,000

Noosa                                       $742,000

Wurtulla                                    $464,000

Eumundi                                   $537,000

Cooroy                                      $442,000

Little Mountain                          $442,000

Nambour                                   $334,000

Coolum Beach                          $481,000

Caloundra                                 $512,000

Mountain Creek                        $458,000

Peregian Beach                        $725,000

Yandina                                    $467,000

Yandina Creek                          $558,000

Palmwoods                               $430,000

Tanawha                                   $789,000

Woombye                                  $384,000

Mooloolah Valley                      $423,000

Landsborough                           $373,000

 

 

If you need any more information, let me know as I can access it for you via RP Data.                 

 

Coast house market is tipped to rise 22%

Here is yet another article from the weekend:

Despite a slowing national economy and consistent interest rate rises this year, the Sunshine Coast housing market is predicted to show steady growth over the next three years.

According to BIS Shrapnel’s latest Residential Property Prospects 2008 to 2011 report, the Sunshine Coast will follow Brisbane’s lead and should have median price increases of about 22% over the three years to June, 2011.

Senior project manager Angie Zigomanis said key drivers such as population growth, low vacancy rates and a rising rental market were good news for the Coast.

“This is having a two-pronged effect, with more owner-occupiers moving to the Sunshine Coast and higher rents encouraging investors into the market,” he said.

“Having said that, though, since August we’ve had four interest rate rises by the Reserve Bank and a few independent rises by the financial institutions, which has knocked the stuffing out of the recovery of the market and over the next 12 months we can expect relatively flat conditions with minimal growth.”

Mr Zigomanis said another interest rate rise was expected in September, which could also impact the property market into early 2009.

But he said, beyond that, the Sunshine Coast could expect steady growth in the residential property market.

“Once interest rates stabilise, the market will start to strengthen again and with low vacancy rates, rising rents, and strong economic and wage growth in Queensland, affordability will improve a little bit more and owner-occupiers and investors will come into the market,” he said.

“Most of the growth is expected from 2009 to 2011, but the next 12 months will be slower.”

Mr Zigomanis said weakening markets in other areas of the country had also led more people to move to south-east Queensland, where housing was still considered relatively affordable.

“Obviously there are parts of the Sunshine Coast which are still pretty expensive, like Noosa, which is on par with other areas like Sydney or Melbourne, but there is also the lifestyle and the climate which appeals to people as well,” he said.

And the reason the Coast could expect some growth while other centres were slowing was because of its limited supply, he said.

“Compared with the USA, where they built too many dwellings and had more than the number of households, the population growth here in Australia has picked up thanks to overseas migration, but we don’t have as many homes, and because there are not enough dwellings, it has maintained upward pressure of the market,” he said.

“For the Sunshine Coast, that means predicted growth of about 22% over the next three years, so roughly 7% per annum, which is not a huge amount more than household growth.”

He said Queensland’s strong economy, on the back of the resources boom, also put it in good stead for the next three years.

And, he said, coastal areas were predicted to show stronger growth than hinterland regions, although property sales at the very top end of the market could slow as a result of some investors losing money on the share market.

As for first home buyers, Mr Zigomanis said there was an opportunity over the next 12 months to haggle for prices, bearing in mind increased interest rates.

He said he expected housing prices on the Sunshine Coast to peak by about 2011.

Sunshine Coast Property Prices

Here is a newsletter that I have recently received from a local real estate agent. Good news for all that have bought, but it looks like prices are still on the rise!!!

What is really happening in our market place?

 

As the REIQ spokes person I have just received the latest house sales results for the quarter.

 

Given the quieter markets in many other areas of the state, the Sunshine Coast performed quite well over the March quarter.

 

The median price in Maroochy is up 1.2% to $456,000 for the quarter.  The change for the year shows an increase of 14% with the 5 year increase being 82.9%.  Caloundra and Noosa both show similar growth overall.

 

While there has been a slowing of demand and enquiry, we are certainly not seeing any great drops in the market.  The Sunshine Coast market is underpinned by high migration and is still BUMPING along quite nicely with buyers just biding their time a bit more.

 

I attended a breakfast meeting last week for the Institute of Company Directors & the guest speaker was Michael Workman, a top economist with the Commonwealth Bank.  He said we would in no way be affected by what is happening in the U.S. real estate market.  He also predicted most house prices won’t be going up while the mortgage rate is 9.5% unless they are in extraordinary locations.  He then added such as here “such as here.” ie the Sunshine Coast.

 

The growth rate of the Sunshine Coast proves we are in an extraordinary location. He also predicted rents rising by 10% p.a. over the next few years.  The rise started last year & will continue until at least 2010.  People will continue to rent while the interest rates are high.  The demand for rental properties in our office is insatiable, as our vacancy factor of under 1% shows.

 

MY ADVICE:  Now is the ideal market to get moving if you want to upgrade.  Buy & sell in the same market always.  Wise investors should be getting in now & buying to take advantage of the rental demand and increasing rental prices.  Look carefully at the type of property most suitable for good tenants.  Don’t just buy anything that is cheap, quality tenants require quality properties. Balance rental returns with the prime capital growth areas. 

 

 

Queensland house prices to come down?

BLIGH GREENFIELD STUDY REVEALS LAND, LOTS OF LAND

Premier Anna Bligh today announced the State Government would fast-track planning for development of 17 greenfield sites in South-East Queensland, as part of its plan to tackle housing affordability.

Ms Bligh said while the Government was limited in its ability to influence housing prices, she was determined to do everything possible to tackle the issue of affordability.

“I want the Australian dream to be alive and well here in Queensland, particularly for young people wanting to own their first home.

“Yesterday we announced significant changes to stamp duty to make buying a home in Queensland cheaper and today, we are tackling the issue of land supply.

“Last year as Treasurer and Infrastructure Minister I commissioned a review of the Greenfield areas within the Urban Footprint that could be market-ready sooner.

“I want to see land being turned into new homes for Queenslanders as quickly as humanly possible and this investigation looked at 42 greenfield areas – containing more than 40,000ha of undeveloped land.

“As a result – the Government will remove any regulatory hurdles slowing the development process on 12 sites:

• Maroochydore, Meridian Plains, on the Sunshine Coast;
• Market Drive and North Lakes in Moreton Bay;
• Upper Kedron and Rochedale in Brisbane;
• Coomera and Helensvale on the Gold Coast;
• Springfield and Redbank Plains in Ipswich; and
• Kinross Road and South-East Thornlands in Redlands.

“This will make it possible for the industry to begin the development process of these sites by Christmas.

“In addition, there are five sites where we believe integrated communities of 15,000 people or more can be delivered and we will work with councils to prepare land developer-ready within 12 months:

• Palm View and Caloundra South on the Sunshine Coast;
• Flagstone in Logan;
• Oxle y Wedge in Brisbane; and
• Ripley Valley in Ipswich

“That’s a total of 17 new Greenfield sites that will be developer-ready by this time next year.

“This is about cutting red tape and bottlenecks that are delaying the development process.

“These bottlenecks are occurring at all levels of government – including within State Government agencies – and its not good enough.

“An implementation team will be established with the Department of Infrastructure and Planning charged with the task of cutting through and removing these hurdles.

“The development industry has been calling on us to make more land in the Urban Footprint available sooner – here it is,” she said.

Deputy Premier and Minister for Infrastructure and Planning Paul Lucas said the fast tracking of Greenfield sites will be guided by an Action Plan released today.

“Housing affordability is a challenge that demands action not just at all levels of Governme nt but also from the development industry,” said Mr Lucas.

“The industry wants more land released and the Bligh Government has responded with a plan that will provide additional housing choice for the public and contain costs by increasing competition between developers.

“But governments can’t do it all alone and we can only bring these sites forward if the necessary infrastructure is in place.

“Yesterday we announced the $107 billion South East Queensland Infrastructure Plan and Program, which demonstrates our commitment to building for Queensland’s future.

“Now we need to work with the industry to deliver these sites ahead of time.

“They will also need to demonstrate how they plan to deliver the transport options, road upgrades, water and energy needs for these areas.

“These sites must all be developed as well-planned and integrated communities and the State Government will need to ensure growth is spread across the regions.

“Although the review shows plenty of greenfield land available for housing it must be emphasised the South East Queensland Regional Plan aims to cater for 45 percent of the expected population growth through infill and redevelopment.”

“This review is another one of the State Government’s strategies to address housing affordability in addition to setting up the Urban Land Development Authority and implementing reforms to the state’s planning and development systems.”

Visit www.dip.qld.gov.au

 

 

 

 

 

 

Queensland budget: First homeowners’ windfall

TONY MOORE

3/06/2008 2:33:00 PM

First homeowners have been offered savings of $9800 on a $500,000 house as a key part of the first Bligh government budget.

The Queensland Government was under pressure to act after housing affordability figures released last week by the Real Estate Institute of Australia (REIA) showed Queenslanders were paying more of their weekly wage to repay mortgages than other states.

Under the package of reforms today offered in Treasurer Andrew Fraser’s first budget, stamp duty for all first homes up to $500,000 by September 2008 will be scrapped.

This extension of the first home buyer exemption price – now $320,000 – will provide savings of up to $9500 at $500,000.

Last year’s budget decision to reduce mortgage duty to zero from January 1, 2009, has been brought forward six months to July 1, giving savings of about $300 on a $500,000 home.

The QLD Government will also abolish the First Home Owners Grant Scheme for houses valued at more than $1 million to redirect the funds.

Mr Fraser said the changes were essential to help Queensland first home owners get back into the property market.

“Scores of younger Queenslanders have been locked out of the property market simply because it has risen out of their reach,” he said.

The REIA’s housing affordability figures released last week showed a slowdown in the number of Queensland first homeowners entering the real estate market.

The State Government has also cut the land tax threshold from $1200 to $500 for owner-occupiers and from $2250 to $1450 for companies and trusts.

Mr Fraser acknowledged the State Government had a role to play in providing affordable housing.

“Housing affordability cannot be solved by any one act of government, but this government can assist and it will,” he said.

“Through these sweeping changes, any Queenslander seeking to break into housing ownership by purchasing a house under $500,000 will be given a break by not having to pay one red cent in stamp duty on the purchase.

“They will not pay one red cent on their mortgage – because we are abolishing it in full on day one of the financial year.”

The budget also brings forward $125 million for social housing from the Queensland Future Growth Fund.

It also provides $9.5 million in 2008-09 for the Urban Land Development Authority (UDLA) to bring State Government-owned land to the property market.

Source: Brisbane Times

 

 

 

 

 

Sunshine Coast – where has the sun gone?

It took a while for the rain to arrive but when it finally hit the Sunshine Coast, it did so with gusto.

After waiting 48 hours for the promised deluge, the Coast woke yesterday morning to find the heavens had opened and the region was awash.

Many areas recorded falls of more than 100mm on Sunday night, with Diddillibah (176mm), Eumundi (172mm), Nambour (169mm) and Maroochydore (161mm) among the heaviest.

By yesterday morning roads were cut off, schools closed and traffic thrown into chaos but still the rain continued and a stream of motorists came to grief on the drenched surfaces.

The Sunshine Coast was drenched with around 200mm in 24 hours, causing flooding in the Maroochy River and surrounding streams.

The Bureau of Meteorology has advised water levels will return to normal later Tuesday.

Queensland Emergency Services Minister Neil Roberts has told state parliament the SES received over 1,000 calls for assistance over the last three days.

Seven-day outlook

Tuesday

Possible thunderstorm
Low 19 High 23

Wednesday

Mostly cloudy
Low 15 High 23

Thursday

Mostly sunny
Low 14 High 23

Friday

Rain developing
Low 14 High 24

Saturday

Rain
Low 14 High 23

Sunday

Possible shower
Low 13 High 22

Monday

Possible shower
Low 16 High 22