Posted by Rob Honeycombe on 29 May 2008
The term’s been used so much lately you could be forgiven for switching off when you hear it – “housing affordability crisis”. But for those feeling like a home purchase is slipping from their grasp, all news on the topic is welcome. And buying that first home might now be a little easier for some, with the Federal Budget’s fine-tuning of the new First Home Saver accounts, now due to kick off in October. Designed to encourage a savings habit Mr Swan will tip in 17% of what you deposit to a max $850 each year, and the earnings of your account will be taxed at just 15%. With that lower earnings tax this might be a good way for family to help you on your way – plenty of parents with 20-somethings still living at home will think it’s a great deal! There’s a bunch of rules (you don’t get govt pennies without them). Your minimum annual deposit is $1000 and max $10,000, and you can’t withdraw anything to buy that home until you’ve had 4 years of deposits. You’ll still qualify for the first home owner grant on top.
Will there be plenty of takers? We hope so, but the four year minimum doesn’t fit the ‘want it now’ approach of today. Recent non-government schemes like “Option 2 Buy” weren’t successful either mind you and they offered an instant solution. Under that now-dead format you got the company to buy your choice of home, you lived in it and made payments to them, and had an option to buy it yourself at a pre-agreed price within 5-7 years. “Option2Buy” went into liquidation earlier this year after a massive advertising campaign and plenty of attention. We read that when they went under the authorities rushed to check the impact on customers – but discovered there were none. Zero!
There’s still others out there offering similar rent-buy plans including one that tempts by offering the customer all capital gains while they “rent” the home. The rent though is apparently somewhat higher than market…
On the ground we’re witnessing more of the group-purchases, with siblings and even friends getting together to buy property. Not our position to advise or warn people but there’s some obvious risks when life takes each of the buyers in different directions. But with prices still rising we’d expect to see more of this. No doubt there’s some parents back home encouraging them too!
Tags: Brisbane housing affordability, first home buyers
Posted in Brisbane's sales market | No Comments »
Posted by admin on 29 May 2008
We didn’t spot any Councillors in the audience but around the same time of Bees Nees seminar last week and our ‘sneak-peek’ at property in the year 2020, BCC has moved to allow greater building heights in the South Brisbane/West End area. The Lord Mayor’s been quoted supporting up to 30 storey in selected near-city areas and up to 12 storey along the river.
Contemplating the population targets set by the State Government, the Brisbane City Council is looking to areas surrounding the CBD, and taller towers to accommodate more people. The announcement’s generated the odd headline or two but it seems the broader public may be accepting Brisbane’s evolution in this direction.
More than 240 locals attended our 2020 seminar, with local resident and planner Andrew Crawford mapping out this pocket’s transition, and market commentator Michael Matusik offering his insight. Michael reminded us that looking back 12 years our median house sale was just $132,750, and with that now past $600,000 it isn’t hard to imagine his predicted $1.5million price tag in the year 2020.
Notes from the seminar are available at the Research page of our website, along with a link to Michael’s full presentation. We hope you find it interesting.
Tags: Brisbane City Council, Brisbane home design, Brisbane housing supply, Michael Matusik
Posted in Brisbane's sales market, South Brisbane and South Bank, trends in Brisbane property | No Comments »
Posted by admin on 28 May 2008
The young couple invited their aged Vicar for Sunday lunch. While they were in the kitchen preparing the meal the minister asked their son what they were having.”Goat,” the little boy replied. “Goat?” replied the startled man of the cloth, “Are you sure about that?” “Yep,” said the youngster. “I definitely heard Dad say to Mum, we might as well have the old goat for dinner today as any other day.”
Tags: bad but clean jokes
Posted in just for fun! | No Comments »
Posted by Rob Honeycombe on 8 May 2008
With the Treasurer warming up for his Queensland state budget on June 3rd it’s timely to ‘blue-sky’ how our pollies could actually be helping with housing affordability. What’s well-reported is the vast undersupply of housing, with market analyst Michael Matusik putting Queensland’s annual shortfall at 44,900 homes. Interesting to note is the revenue our state generates from property – with more than $3.7billion (yes billion) flowing from stamp duties on sales, land taxes and duties on mortgages.
Despite plenty of talk in 2000 that the GST could eventually replace state taxes, some 28% of our state’s revenue still comes from taxes and duties, with an unhealthy dependency on the property industry.
Would reducing some of these help our housing affordability crisis? While the government is scrapping mortgage duty (now down to 0.2% and nil from January 1st 2009) it’s stamp duty where the state really hauls in the bucks, up 16% this year to $2.8billion. While you pay no duty to buy listed shares, a property investment of $450,000 will land you a stamp duty bill of $14,225. It may be cheaper than other states but it’s still a huge disincentive to investors, and that impacts on tenants through higher rents. Should an investor pay more stamp duty than an owner occupier? ($600 more in the above example). There’s a third of our population that rent so surely we need incentives to create new housing for them.
Victoria this week moved to further reduce their stamp duty rates, and they remain the only state to offer a genuine incentive to build new property. In the Garden State buying off the plan means hefty savings in duty compared with established property – the amount is calculated only on what exists at the date of contract, usually just the land. It’s a simple idea, offers an immediate encouragement to bring new housing supply online and Queensland could do the same thing on June 3rd. Construction costs are still rocketing ahead with home builders and developers struggling to make new housing viable, and we’ll all grow old waiting for that to change.
With stamp duty revenue soaring up along with housing prices our government’s had a huge, largely unexpected windfall over the past three years. Solid moves to encourage new housing supply must surely be on their agenda.
Tags: Brisbane housing affordability, Brisbane housing supply, construction costs Brisbane, Michael Matusik, stamp duty Queensland
Posted in property taxes and rates etc | No Comments »
Posted by Rob Honeycombe on 8 May 2008
If it’s good enough for Kevin Rudd and Cate Blanchett! Bees Nees are hosting our own “Vision of 2020″. Focussing on West End, South Brisbane and Highgate Hill the May 19th 2008 seminar will take a look at the local property market in 2020. New apartments are replacing industrial uses at a growing rate and BRW Magazine recently tagged the area “the star performer of Australia’s urban renewal precincts”. So how will the area’s housing change over the next 12 years?
We’ve asked two well-respected property experts to share their views. Independent market analyst Michael Matusik knows the market inside out and he’s not afraid to share an opinion or two. Michael has a solid understanding of what buyers and tenants of the future will want. West End resident Andrew Crawford has another perspective as a townplanner and former manager of our Urban Renewal Taskforce. He’s been at the driving wheel of major land-use changes in the Newstead/Teneriffe area and knows the process well.
The seminar is on Monday May 19th 2008 from 6.30 to 8pm at the Convention Centre in South Bank. If you’d like us to send you a free double pass just click to email and quote “FREE-BEE 03″. We’d love to have you along as our guests.
Tags: Andrew Crawford Brisbane, Michael Matusik, Newstead Brisbane, Teneriffe Brisbane, urban renewal Brisbane
Posted in Brisbane's future & new infrastructure, Highgate Hill, South Brisbane and South Bank, West End, trends in Brisbane property | No Comments »
Posted by admin on 7 May 2008
A sales rep, an admin clerk and their manager are walking to lunch when they find an antique oil lamp. They rub it, a Genie pops out and says, ‘I’ll give each of you just one wish.”Me first! Me first!’ says the admin clerk. ‘I want to be in the Bahamas driving a speedboat, without a care in the world.’ Puff! She’s gone. ‘Me next! Me next!’ says the sales rep. ‘I want to be in Hawaii relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.’ Puff! He’s gone.
‘OK, you’re up,’ the Genie says to the manager. The manager says, ‘I want those two back in the office after lunch.’ Moral of the story: Always let your boss have the first say.
Tags: bad but clean jokes
Posted in just for fun! | No Comments »
