August 22, 2016
by Michalina Lisik
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Check out the plans for the new $3 billion development – The Queensland Times

Check out the plans for the new $3 billion development

Mayor Mark Jamieson has described the sod turning of the new Palmview development as “another significant day” for the region. 

He said things had changed in terms of the council’s attitude and said the council had come a long way since 2011/12 in terms of delivering projects and confidence to the region. 

“It’s not every day that a $3 billion development commence on the Sunshine Coast,” he said. 

The council will chip in half of the $18 million required for the first stage’s major roadworks which include an extension of Claymore Rd into the heart of the new town centre to be development by AVID Property Group. 

Cr Jamieson said the $9 million loaned by the council would be repaid with interest as lots were sold off. 

The State Government has also provided a $5 million loan to fast track the delivery of water and sewerage infrastructure. 

The 378ha site dubbed ‘Harmony’ will be the first portion of the Palmview site develope, with two other landowners to develop the balance in future of the 500ha total site. 

AVID’s development will deliver about 5000 homes over the next 10-15 years housing up to 12,000 people while a further 3000 homes housing about 5000 people will be developed down by the other landowners. 

“The Sunshine Coast really is coming of age,” Cr Jamieson said. 

He said the region would benefit from the 9000-plus jobs the project would create. 

A 15,000 sq m town centre will also be built with higher-density living to be constructed around the new hub which is envisaged to feature a full supermarket, department store, retail, restaurants as well as a neighbourhood centre and potential for a swimming pool/aquatic centre down the track. 

For more information, please visit http://www.qt.com.au/news/boomtown-work-begins-3-billion-new-development/3078065/#/0

August 22, 2016
by Michalina Lisik
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Chinese buyers unlikely to turn away from Aussie real estate anytime soon – Your Investment Property

Chinese Buyers Unlikely to Turn Away From Aussie Real Estate Anytime Soon

Increased property taxes and strengthened foreign buyer legislation are unlikely to outweigh the main reason Chinese investors target Australian real estate, according to a major real estate marketing platform.

Malcolm Gunning, principal of Sydney based real estate agency Gunning, this week claimed that while the taxation and regulatory changes aren’t particularly onerous, Chinese buyers in particular believe they have been “singled out” by governments across Australia. 

“The message that has been picked up in China and seconded through our client base is that Australia doesn’t want Chinese investment,” Gunning said. 

“While the changes to stamp duty, land tax and increase in compliance powers granted to the ATO as well as rules to ensure foreign residents meet their capital gains tax liabilities aren’t unreasonable the message is what is of concern,” he said. 

Gunning believes that perception could have a serious impact across the property market in Australia, in particular the apartment sector which could see projects “mothballed” as Chinese buyers take their money elsewhere. 

But while Gunnings believes Chinese buyers feel they are being picked on, not all in the real estate industry believes investors from the Asian superpower have been turned off Australian real estate. 

“Nobody is sulking in the corner. In our experience, most buyers can easily separate state policy from anything directed at them personally,” Gavin Norris, head of Australia for Juwai.com, an online portal that markets real estate to Chinese buyers, told Your Investment Property. 

“The number of enquiries buyers made via Juwai.com to property sellers in Australia was 37% higher in July than in June,” Norris said. 

James Pratt, director of auctions for real estate franchise Raine & Horne, also agreed with Norris and said foreign buyers are made to feel welcome in Australia, particularly by the real estate industry itself. 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/chinese-buyers-unlikely-to-turn-away-from-aussie-real-estate-anytime-soon-221715.aspx

August 22, 2016
by Michalina Lisik
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Coastal areas still popular retirement choice – Australian Property Investor

Coastal areas still popular retirement choice

Data released yesterday by the Australian Bureau of Statistics (ABS) offers an interesting insight into Australia’s ever-increasing aged population, and also the locations in which they like to spend their twilight years. 

Australia’s aged population has increased by almost 20 per cent since 2010, according to the figures.

There were 2.2 million people aged 65 and over living in Australia’s capital cities in 2015 (up from 1.8 million in 2010).

Additionally, 1.4 million live in areas outside our capitals (up from 1.2 million in 2010).

Hobart has the oldest population of any Australian capital city, with its median age – the age at which half the population is older and half is younger – sitting at 39.8 years at June 2015, compared to 37.4 years for the while country. 

Adelaide was the next oldest capital (38.8 years) followed by Sydney (36.1) and Melbourne (36.0).

Darwin was the youngest capital city (33.3).

The residents of Tea Gardens – Hawks Nest, near Port Stephens on the New South Wales coast, were officially Australia’s oldest, with a median age of 61.0 years in 2015.

People living in Tuncurry, on the NSW mid-north coast, were the next oldest (59.7 years), followed by residents of Bribie Island in Queensland (59.3), Paynesville in Victoria’s Gippsland region (59.0) and Victor Harbour on South Australia’s Fleurieu Peninsula (58.1).

For more information, please visit http://www.apimagazine.com.au/2016/08/coastal-areas-still-popular-retirement-choice/

August 19, 2016
by Michalina Lisik
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Home value growth continues to slow giving the RBA one less reason to hold back on rate cut – News.com

Home value growth continues to slow giving the RBA one less reason to hold back on rate cut

Despite hitting record levels, home value growth has continued to slow, latest data shows, giving the Reserve Bank of Australia one less reason to hold back on a rate cut tomorrow. 

The CoreLogic Home Values Index, out this morning, showed a rise of 0.8 per cent over July, after 0.5 per cent in June, 1.76 per cent in May and 1.7 per cent in April. 

The annual rate of growth across the capitals (6.1 per cent) was its slowest since September 2013, but it was the 50th month that the combined capitals have been in growth mode. Since June 2012, combined capital city dwelling values have risen 38.2 per cent. 

CoreLogic senior research analyst Cameron Kusher said there had definitely been a slowing of growth in the last couple of months, though activity was still strong in places such as Sydney and Melbourne. 

He expected the next move by the RBA on interest rates to be down tomorrow. 

“I think interest rates will probably be cut tomorrow largely because inflation is very low,” he said. “But RBA will keep a close eye on the housing impact of any rate cut.”

He said given a big pullback by investors and the fact that first home buyers were sluggish, it was upgraders that would drive the market – something he believed would eventually see Sydney and Melbourne growth hit the brakes. 

“That’s the thing that will eventually slow Sydney and Melbourne. It’s not financially viable to upgrade every three or four years. They will probably reach a point where not many upgraders will be active in the market and will slow. It will happen within this decade but at to when that’s anyone’s guess.”

For more information, please visit http://www.news.com.au/finance/economy/interest-rates/home-value-growth-continues-to-slow-giving-the-rba-one-less-reason-to-hold-back-on-rate-cut/news-story/fd400db5202172a6d53f3874d508a500

August 19, 2016
by Michalina Lisik
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Investors Hit The Market Following RBA Cut – Your Investment Property

Investors Hit The Market Following RBA Cut

The Reserve Bank of Australia’s (RBA) May interest rate cut looks to have pumped air into Australia’s investment market, with figures showing investment lending jumped during June. 

Released this week, the Australian Bureau of Statistics (ABS) figures show that $11.78bn worth of investment loans were written during June, a 3.2% increase compared to May. 

Owner occupier loans also increased of the month; with the $20.79bn written through June a 2.5% increase from May. 

In total, $32.5bn worth of new loans were written during June, a 2.3% increase on May’s total. 

“[The May rate cut] filtered down to borrowers and potential property buyers by way of lower home loan interest rates. These rate cuts helped make the cost of borrowing more affordable that ever – which is something Australians were acutely aware of,” Mortgage Choice chief executive officer John Flavell said. 

“From today’s data we can see that Australian borrowers were keen to take advantage of the new low rate environment,” Flavell said. 

While June saw a monthly increase in investor lending, the figures do show the impact the Australian Prudential Regulation Authority’s (APRA) crackdown has had on the investment market. 

In June 2015, $13.05bn of new investor loans were written, a figure that is 12.7% higher than the total new investment loans from June 2016. 

In the year to June 30 2016, $138.2bn worth of new investment loans were written, down 14.9% on the $162.2bn written in the year to June 30 2015. 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/investors-hit-the-market-following-rba-cut-221247.aspx

August 19, 2016
by Michalina Lisik
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Record-breaking new price for Coast property – The Queensland Times

Record-breaking new price for Coast property

A Birtinya office block has just set a new mark for Sunshine Coast commercial real estate, selling to a syndicate of investors for $10.812 million. 

The price will provide an initial yield of 8.81% equating to $3630 per square metre of the total net lettable area of 2978 sqm across the three level development, a return that doubles that available in capital city markets.

The 3305 square metre fully-leased medical zone property, known as Kawana House, has a net income of $950,000 from seven seven commercial tenants including a cafe and two telecommunications antennas. 

The complex provides undercover parking for 108 cars over two levels. 

The sale was conducted by CBRE Metropolitan Investments as a result of a successful Expressions of Interest campaign by both the CBRE Sunshine Coast and CBRE Brisbane offices lead by Tony Justo from the Sunshine Coast Metropolitan Investments’ team. 

Mr Justo said the six-week campaign attracted strong enquiry across Australia with particular interest from high net worth individuals, commercial property trusts and medical investment funds. 

It resulted in 13 inspections during the campaign period resulting in five documented offers and a further three revisions on close. 

The property was the first commercial office to be developed in Kawana Business Village occupying a prominent 3599 sqm parcel of land east facing over Lake Kawana. 

Stage one was completed in 2002 and the second stage in 2005. 

Kawana House represents 8% of the 40,000 sqm of commercial office space now developed in the expanding Kawana Business Village.

The precinct forms part of Oceanside Kawana which has drawn in investment transactions totalling over $30m in the past 12 months. 

Commercial vacancy rates in the village now sit below four per cent. 

For more information, please visit http://www.qt.com.au/news/record-breaking-new-price-for-coast-property/3075467/

August 18, 2016
by Michalina Lisik
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NAB predicts 1% cash rate within 12 months – Your Investment Property

NAB predicts 1% cash rate within 12 months

Australia’s central bank will cut interest rates to 1% within a year to combat weak inflation and rising unemployment and could then turn to unconventional monetary policy, according to Alan Oster, the chief economist at National Australia Bank Ltd. 

Announcing updated rate forecasts in conjunction with the release of NAB’s July business confidence and conditions survey that both showed declines, Oster is focused on risks to the economic outlook in 2018, when a lift in natural-gas exports level off and a dwelling construction cycle turns down. 

The Reserve Bank of Australia “is seemingly less worried than we thought about using up some of its valuable remaining monetary policy ammunition,” Oster said, referring to two cuts in the past four months to a record-low 1.5%. “The case for further cuts from the RBA appears to be mounting.” 

NAB’s 1% rate call joins a growing group that includes JPMorgan Chase & Co., Morgan Stanley and Macquarie Bank Ltd. Prior to the Aug 2 interest-rate cut, the lender had forecast a 1.75% rate through the third quarter 2017. 

To stabilize the jobless rate at around 5.5%, the RBA will need to provide further medium-term support through two more 25 basis point cuts in May and August 2017, said Oster. “And thereafter raises the prospect of the RBA thinking about the use of non-conventional monetary policy measures,” he said. 

Australia’s central bank has studied the examples of unorthodox policy conducted by its peers, and would favor a multi-pronged stimulus if economic conditions unexpectedly deteriorated. While the RBA says the chances of considering unconventional steps is “very remote,” incoming Governor Philip Lowe – who takes the helm in September – has indicated that lowering the rate on its own would lose effectiveness as it approaches 1 percent. 

“The outlook for inflation remains very subdued,” said Oster, a former OECD and Treasury official, who expects CPI to remain below the bottom end of the RBA’s 2% to 3% target until mid-2018. 

“Most of the factors currently suppressing inflation are likely to persist, including low wages growth, strong retail competition both domestically and offshore, low commodity prices globally and slow growth in rents as dwelling supply picks up.” 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/nab-predicts-1-cash-rate-within-12-months-221234.aspx

August 18, 2016
by Michalina Lisik
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Younger Generations Face More Financial Struggles: Survey – Your Investment Property

Younger Generations Face More Financial Struggles

Gen X and Gen Y have it tougher financially than their parents when it comes to achieving key life milestones, according to a new survey conducted by ME. 

When all respondents were asked to rate the challenges they experienced in achieving 10 different life milestones, more younger than older generations indicated greater financial challenges across 9 of the 10 milestones.

Younger generations nominated ‘starting their own business’, ‘buying their first home’ and ‘raising a family’ as their top challenges, while older generations nominated ‘having money left over for holidays and luxuries’,’starting their own business’, and ‘making ends meet’ as their top challenges. 

“There’s often debate about whether younger generations are struggling compared to their older compatriots and these findings support the argument that they are experienced greater financial challenges,” ME’s head of deposits and transactional banking, Nic Emery, said.

“As a bank we see firsthand how hard it is for younger people, particularly for Gen Ys buying a first home, when average house prices are seven times the average income today compared to three times thirty years ago.” 

The survey also found that women are finding it tougher than men. Nearly three quarters (73%) of women said they found it difficult to start their own business – 11 points higher than men – and 63% said earning a decent income was difficult, compared to just 53% of men. 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/younger-generations-face-more-financial-struggles-survey-221133.aspx

August 18, 2016
by Michalina Lisik
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Foreign Investors Make Up Lion’s Share of CBD Property – Your Investment Property

Foreign Investors Make Up Lion's Share of CBD Property

Foreign investors make up more than two thirds of Australian CBD commercial real estate, a new survey has revealed. 

According to research from commercial and industrial real estate network, Savills Australia, investors splashed out nearly $18 billion on Australian office property – both CBD and metropolitan – in the 12 months to June. Foreign investors in particular were behind a 48% share overall, and a massive 68% share in CBDs. 

The $17.9 billion total – comprising $9.8 billion worth of CBD office transactions and $8.1 billion worth of Non-CBD – was up almost 35% on the five year average. 

Sydney had the most transactions by value at $4.6 billion, or 47% of CBD office sales nationally, while Melbourne had the greatest number of transactions, with 28 commercial transactions. 

According to Savills national head of research, Tony Crabb, this was the seventh consecutive year that Australian office sales had seen year increases, with the exception of 2012. 

“This has been an extraordinary run which is unprecedented locally and there is no reason to believe we won’t see the upward trend continue given the current global economic and political status quo,” Crabb said. 

Whilst foreign investors made up the lion’s share of CBD transactions, Crabb said off-shore buyers also figures prominently in Non-CBD sales, purchasing 25% of the stock sold for $1.9 billion. 

Savills director of cross border investments & capital transactions, Ben Azar, said Australia would continue to see massive foreign investment. 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/foreign-investors-make-up-lions-share-of-cbd-property-221458.aspx

August 18, 2016
by Michalina Lisik
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Survey Reveals Major Property Turn-Offs for Australians – Your Investment Property

Survey Reveals Major Property Turn-Offs for Australians

High crime rates are the major turn off Australians when it comes to making a property purchase according to the results of a new survey. 

Carried out by Finder.com.au, the survey of more than 2,000 Australians found that 75% of people would not by a home in an area that had higher than average crime rate. 

Being close to noisy pub would also stop 68% of people from buying a home in a particular area, while 64% said they would not buy in an industrial suburb. 

In comparison, only 36% of Australians would be put off buying in a neighbourhood where public housing is present, while both being within two kilometres of brothel or being in an area with an above average unemployment rate would only deter 33% or people. 

Smaller things that would deter people from buying a home including if it was a deceased estate (12%), if it was located within two kilometres of a fast food chain (7%), if the suburb lacked “trendiness” (7%) and if the street number was 13 (5%).

While some of those reasons may be more legitimate deterrents than others, Bessie Hassan, money expert at finder.com.au, warned people not to rush into any decisions when it comes to something as major as buying a property. 

“There’s a difference between true deal breakers and factors that house hunters worry unnecessarily about. Don’t be too quick to judge as your preconceived ideas could see you miss out on a hidden gem,” Hassan said. 

“Interestingly, the third biggest turn-off was a home in an industrial area. But keep in mind that gentrification can positively impact lifestyle and property values as the area goes through a process of urban renewal,” she said.

“The areas buyers are looking to purchase in will not be the same area in 10 years from now, it can evolve dramatically over time.”

For those who may be trying to sell in area that is affected by high rates of crime or other major buyer turnoffs, Hassan said there are steps people can take to try an improve their situation. 

For more information, please visit http://www.yourinvestmentpropertymag.com.au/news/survey-reveals-major-property-turnoffs-for-australians-221578.aspx