Queensland is quickly becoming one of the nation's leading real estate markets, with more and more people looking to invest in the sunshine state.

And while their southern neighbours come to terms with the slowing pace of a post-GFC economy, it seems that the mining boom is continuing to strengthen the state's domestic economy and real estate market.

But despite a number of experts coming out of the woodwork to put in their two cents about where and when the money will be made, it is doubtful whether anyone was expecting The Courier Mail's February 22 headline about a couple wanting to sell their home in Capella for a breezy $1 million.

On first impression, Steve and Ruth Franettovich appear to be your average Australian couple, but if the property sells that may become one of the country's savviest investors.

"We've always known the house, land, million-dollar view that she has out the back and the one-off opulence of the home make it a prestige home," commented Mrs Franettovich.

"We've just been waiting for the economy in the area to lift."

The pair initially decided to sell more than two years ago when mining activity in the area began to pick up, having a direct impact on living costs and driving up house prices.

Figures from last year's September quarter show that the median house price in the central highlands, where the Franettovich property is located, went up by 16.1 per cent.

This is an impressive result by any standard, but even more so when you compare it to the state's capital Brisbane, which fell 5.9 per cent in the same period.

The Franettovich's are prepared to wait for the right price and are said to be regularly meeting with would-be buyers, but have yet to put pen to paper and sign on the dotted line.

 

Bligh’s $140 million Building Boost to stimulate housing sector

Premier Anna Bligh and Treasurer Andrew Fraser have announced major reforms to the state’s housing sector to boost construction jobs and make new housing more affordable.

The Queensland Building Boost is a six month, $140 million initiative that will provide a $10,000 grant for all Queenslanders constructing or purchasing a new home up to the value of $600,000, with first home buyers also eligible for the $7,000 first home buyer’s grant.

“The Queensland Building Boost will be available for six months from 1 August. I would urge anyone looking to build or purchase a new home, particularly first home buyers, to get in quick and make the most of this opportunity.” Said The Premier.

Changes to Stamp Duty - Get in Quick

•Hurry home buyers- No home concession from 31 JULY 2011.

•First Home Concession will still apply but at different rates.

•First Home Owners Grant of $7,000.00 still available

•Changes to stamp duty from 1 AUGUST 2011.

•Building Boost Grant of $10,000.00 available to any person or corporation buying or building a new home for less than $600,000 to live in, or to rent out for investment purposes.

Available only from 1 August 2011 to 31 January 2012. 

This is good news for first home owners who are looking to buy or build a new home to live in as they may be eligible for a bonus of $17,000.00 – the First Home Owners Grant and the Building Boost Grant.

This is also good news for property investors as a corporation may apply for the building boost grant as well as individuals.

The rates for transfer duty will change from 1 August 2011. The amount of stamp duty payable for properties with a purchase price of less than $550,000.00 will generally be lower to take into account the removal of the home concession rate. 

The First Home Concession rates will also change from 1 August 2011 and will increase to offset the removal of the Home Concession rate.

 
Click Here For a Summary of the Changes

For more information on the Building Boost grants or transfer duty reforms visit www.budget.qld.gov.au/taxreform.

The budget has been the main talk for this month. The return to surplus in 3 years is a tall order and one that is reliant on the mining boom continuing as well as both parties not blowing the budget in their campaigns prior to the next election.

What we don’t know is how China will manage its economy over the medium term as it battles with high inflation. The most likely scenario is China’s economy slowing but not enough to dampen its hunger for our commodities. With the new mining tax announced some areas of Australia and in particular, Queensland are worried the government has just killed the economy. Regional areas linked to the mining industry are hoping this won’t send the big mining companies overseas. We will wait to see whether this will affect the property market in these areas.

The only budget announcement directly related to property was the unveiling of the new tax in NSW for properties over $500,000. This will have very little effect on investors. A property worth $600,000 will incur an additional $200; hardly a deal-breaker.

The main property markets on the east coast are unlikely to be affected much by this budget as we continue to see supply struggle to keep up with demand. Areas with good infrastructure and strong yields will still hold their value.

Ultimately, we see very little effect on the housing market. Things will slow down over the coming months and interest rate rises take effect but prices and demand will continue to rise over the next few years. Brisbane will be the next mover, with predicted 30% gains over the next 3 years!

Mainstream news reporters love to tell how bad things are when property prices fall or interest rates rise. But as always, there is two ways of looking at it. When interest rates rise, the economy is improving. Inflation needs to be kept in check so the Reserve Bank raises interest rates. The good news for investors is two-fold.

Firstly, improving economic conditions and a growing housing market mean capital growth. Also as rates rise, rents usually rise too giving investors a cushioning against the increased payments.

Secondly, interest payments are tax deductible for investors so interest rates have much less effect on investors than owner occupiers. In fact, with tax deductions and increasing rents, it is safe to say the effect of rate rises is next to nothing. The only times investors will feel the pinch is if they have very little taxable income and therefore will not enjoy the full tax deductible breaks of a negatively-geared property. Also when a property has a very low yield and rents are only a small portion of the interest payment, this can cause interest rate movements to be of greater affect. Speak to a wealth coach to find ways to minimise rate rise effects.

The Melbourne Cup rate rise, which brings the RBA cash rate to 3.5%, is a good indication that property and the large economy are well and truly on the rise too. Of course there will be a few people who think this is the doomsday calling for what the property markets have done since October 2008, but we think it is the perfect sign for buying more property. If you were too scared to get into property back in October when the start of the increased first home buyers' grant begun, then there must be enough signs and confidence by now...

We are looking at a sustained rally in house prices across the board for the remainder of 2009 and 2010, after that nobody really knows. The RBA is raising the cash rate one quarter of a percentage point each time so as not to upset the apple cart. This will lead to banks' raising rates at a gradual pace meaning rates will stay below average until at least the end of next year.

If this isn't a good time to buy then when is???

We're well into the property recovery now with first home-buyers leading the charge giving a boost to house and unit sales but in particular, new construction.

All we've seen in the news lately is how the first home buyers are buying homes in droves buoyed by the government's increased grant. I have friends in Melbourne who are trying to buy their first home in Preston, 10kms from the city and they are struggling to get an offer in before properties sell! Properties they are looking at are selling quickly and often above the asking price.
We are seeing the same sort of response here in Queensland with numbers up by over 300%.
This is exactly what we said would happen back in October when the grant increase was announced. See FHOG gives shot in the arm.

MORE than 42,000 people have taken up the federal government's first home buyers
grant since extra money was poured into the scheme last October, new figures reveal.
Under the government's $1.5 billion first home buyers boost, the first home buyers grant
was doubled from $7000 to $14,000.
Those first home buyers who purchase a new home receive an extra $7,000 to take the
total cost of government assistance to $21,000.
Australians have been taking up the boost at a rate of more than 12,500 a month,
Housing Minister Tanya Plibersek says.
The boost combined with low interest rates has meant that thousands of first home
buyers are entering the market.
"A strong housing market is critical for underpinning confidence and supporting jobs in
the Australian economy," Ms Plibersek said.
NSW has seen the highest uptake, with 14,404 first home owners receiving the boost,
followed by Queensland and Victoria (9,319 and 8,632 respectively).
About 4,200 first home buyers have entered the market in Western Australia since
October, more than 3,300 from

South Australia and 1,135 from Tasmania.
Both territories recorded the lowest uptakes with 703 grants awarded in the nation's
capital and 404 in the Northern Territory.
"First home owners, builders and developers have been telling me that the First Home
Owners Boost is working. Some builders are also starting to see signs of more second
and third home buyers," the housing minister said.

March 28, 2009 - AAP

 

 

 

 

 

 

I have uploaded the latest My Property Review cover story - it can be found in the Free Resources section.
The article discusses the changes planned for the Horton Park Golf Club as they relocate to a much larger site in the Kunda Park district. This will allow the current site to be redeveloped and has very exciting possibilities. Plans are to have a mix of residential, commercial and industrial development with plenty of green space. The 54 hectare site is close enough to Maroochydore CBD to make a huge impact on the look and feel of the city. Council is seeking input on the plan over the next few months.
If you have any comments you'd like to make here as to what you think should be introduced to the area, please feel free.

Last week's My Property Review cover story was the second part in a two part series on the coasts infrastructure and how it will change the face of the Sunshine Coast. It's a interesting read and will give you an insight into Council's plans for the region as well as pressures from developers and communities.
Read the entire article here - "Work in Progress"
- By the way, you'll need to be a member of the site to download the article but it's free so join now!