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Archive for July, 2009

Posted by Rob Honeycombe on 31 July 2009

Standing smack bang in the middle of the lounge room was a boat. Not a little model boat. This was a full size, aging, wooden boat like your granddad used to take you fishing in, with the battered old oars propped against it.

As home renovators go, this young couple was adventurous and, while the boat-cum-bookcase seemed like a great idea, it was just too big, taking over the home and crowding the tiny living space. But at least it wasn’t another yawn-inducing, vanilla reno job.

If you’re weighing up your renovation options don’t be afraid to add some flavour, some colour, some identity. Neutral is safe but it can also be pretty boring, right?

Whether you’re dressing your home up to sell it or making a new home feel more like ‘home’, here are some quick suggestions to get the most bang for your renovation buck (particularly aimed at people with tight budgets):

Emphasize strengths, downplay any shortcomings.

So, for example, if you have a tiny bathroom (and matching budget) just get it crisp, clean and clutter free. Spend the money where it can have most impact – enhancing the home’s strengths. If the backyard is deep then build a small pergola or Jamie-Durie-like seating area right at the back. This will quickly show off the size of the garden.

If there’s a great view or even a leafy outlook then ‘frame’ your windows with classy blinds or simple drop curtains. And don’t be afraid to leave window dressings off in some rooms. Do you really need them in the kitchen? Try a simple dressing across the top, it doesn’t have to be expensive. Pinch the ideas from design mags then put them together yourself.

Kitchens are important, especially benchtops and cooktops/ovens. And this is one area where a neutral palette is always best. Changing your kitchen colour scheme whenever your mood or tastes change would be extremely expensive. Colour and life are best added with your knick-knacks, recipe books or fluffy oven mitts (before they’re immersed in casserole sauce, of course!).

First impressions set a tone.

For houses, you can make a huge difference with a coat of fresh paint on the fence, replacing the rusty letterbox and a large pot-plant on the doorstep. All great value.

Apartment dwellers should clear all that clutter that lives on horizontal surfaces near the door, then find a nice piece of art or consider a feature colour for the entry wall. (Mirrors are overdone in our view – good feng shui or not.)

# We wrote this article for the real estate pages of ourbrisbane.com

Posted by admin on 31 July 2009

Friday’s are for fun so here’s another from the mouths of babes. Enjoy!

The children had all been photographed, and the teacher was trying to persuade them each to buy a copy of the group picture. ‘Just think how nice it will be to look at it when you are all grown up and say, ‘There’s Jennifer, she’s a lawyer,’ or ‘That’s Michael, He’s a doctor.’

A small voice at the back of the room rang out, ‘And there’s the teacher, she’s dead.’

Posted by admin on 22 July 2009

residential investmentWe’ve written before about our lack of institution or company-owned residential real estate. Across Australia 30% of us live in rented accommodation and Mum and Dad investors own most of this housing. Despite 9% of our workforce’s wages going to superannuation, cash that has to find a home, the big funds have never been attracted to residential property.

Westpac looked set to change all that in 2006, buying a whole bunch of housing in anticipation of launching our first residential property trust. But  this week they’ve announced they’re selling up. It’s almost 500 properties, all leased to the Defence Housing Authority. Not like they’ve had any vacancy.

Even with an incentive plan, the National Rental Affordability Scheme, put in place by Federal Labor (one of their 2007 election ideas,) the big end of town has proven disinterested in residential housing. Too low a return? Too risky? That’s not what history shows.

Westpac says they’re abandoning their plans for a funds management portfolio because the market has changed and “the strategy is no longer appropriate.” Who knows what that means.

Either way it puts more pressure on average Australians to invest in residential property.

Posted by admin on 20 July 2009

A good reminder today for those of us who live in highrise towers. According to the Courier Mail a spiderman-style robber has been arrested on the third floor of a Brisbane CBD apartment building.

“Police said the 21-year-old man was seen outside a first floor unit in Albert Street about 3.15am yesterday and when officers arrived he had allegedly climbed up to a third floor balcony. Owners of the apartment were not even aware of the man outside, and he was found to have a number of allegedly stolen items with him.”

In these milder months some residents leave balcony doors open for a bit of fresh air during the night, but being high up mightn’t stop thieves with steel nerves.

This gent was charged with multiple break and enter offences as well as engaging in a high risk activity. He’s not the first to do it and likely won’t be the last.

One of our team remembers a regular ‘cat burgular’ who did the rounds of St Lucia towers back in the early 1990’s. She nabbed heaps of goodies from apartments as high up as the 9th floors, scaling up the outside of balconies in the dark of night. Police finally caught her and discovered she was actually pregnant when she commited the crimes! Determined lady!

Posted by Rob Honeycombe on 17 July 2009

We’ve been tracking the number of homes for sale in postcode 4101 (West End, Highgate Hill and South Brisbane) and there’s been a very strong drop in recent weeks. The graph below shows how quick the change has been.

* The total number of apartments and houses for sale in the 4101 peninsula has dropped 32% over the past 5 months;
* 287 places for sale in March but now just 195
*This area had 598 sales in 2008 so this reflects a market that’s well and truly undersupplied. There are still buyers looking but many sellers are holding their houses and apartments off the market.
* Sales volumes in the first quarter of 2009 totalled 140, pretty much in line with 2008, so the market is still steady.

So with just 195 homes on the market right now we have just 4.2 months supply – down from more than 6 months supply in March.

Other suburbs are suffering similar undersupplies. One western suburbs agent told us last week their office had just one apartment for sale – in an office of 15 salespeople!

Perhaps not surprisingly 3 of our last 8 sales have been for full asking price, and in one case, more than the list price. This is nowhere near a boom market but for some sellers it’s a great opportunity.housing supply 4101

Posted by admin on 17 July 2009

Today’s Friday and Fridays are for fun, so here’s the best joke we’ve had on email this week:

The children were lined up in the cafeteria of a Catholic elementary school for lunch. At the head of the table was a large pile of apples. The nun wrote a note and posted it on the apple tray: “Take only ONE. God is watching.”

Moving further along the lunch line, at the other end of the table was a large pile of chocolate chip cookies. A child had written a note, “Take all you want. God is watching the apples.”

Posted by admin on 16 July 2009
a busy construction site... the Hale Street Link underway today

a busy construction site... the Hale Street Link underway today

The bridge over the Brisbane River (from Milton to South Brisbane) will open in 2010 and Council has decided it’s time for us to give it a name. Submissions close on the 3rd of August and there has already been over 560 suggestions including the “River City”, “Riverfestival” and even the “Wally Lewis” Bridge. To make your own suggestions (or to laugh at some of the odd ones), log on to www.namethatbridge.com

Posted by admin on 16 July 2009

West End GoannaThe locals who seem to flock to this spot on most nights of the week treat this guy like one of their own, but few might know the origin of “The Goanna”.

Located on the corner of Russell and Boundary Streets since 1996 it’s pretty to hard to miss the cement fondue sculptured lizard. Helen Broadhurst and Joyce Watson, who created a number of permanent works for the city, are acknowledged for this one.

Posted by admin on 15 July 2009

A full week at Lang Park with State of Origin tonight and then a double-header this Friday night with two league games on the one night. Great for the fans but Friday’s early game start is likely to cause yet another melt-down for inner city traffic.

In April the Broncos had an early 6.30pm kick-off (to keep Channel 9 happy) and it caused a traffic scrum for Brisbane commuters. Tempers rose and the inconvenience was huge. Squeezing two games in will ensure league fanatics get a great night out this Friday but timing the game start with the end of week’s hectic after-work rush just doesn’t make sense.

It’s great to have a major sports stadium in the inner city but a bit of common sense with planning would be handy.

Posted by admin on 13 July 2009

The rental market’s been so strong for so long that many of us probably thought rents would be maintained despite the economic slowdown. In this past June quarter they have dropped across Brisbane (albeit rents in the inner city suburbs are still up slightly) and we’d suggest this is largely due to caution from landlords rather than any major change in the supply/demand equation.

Here’s a copy of today’s media release from our Research team:

New data on Brisbane’s rental housing market was released today and it shows the city’s rents have dropped for the first time in more than 7 years.

According to the latest Residential Tenancies Authority statistics the June quarter saw median weekly rents drop by $10 for a 2 bed apartment.

Bees Nees Research Managing Director, Rob Honeycombe says the drop from $360 to $350 per week shows tenants are often getting small discounts from landlords. He says many are nervous about having a vacancy.

“Property owners are just more cautious and focused on economic issues, they don’t want to have any ‘downtime’ between tenants and they’re dropping rents quickly to avoid that”, Mr Honeycombe said.

Mr Honeycombe said the Residential Tenancies Authority (RTA) stats showed this was the first drop in rents on records held since March 2002.

“Three bedroom houses were flat with no change on the March quarter median of $370 per week.  There’s still been a small increase on most rents from a year ago but it’s a bit of a breather for tenants at the moment”, Mr Honeycombe said.

“Normally if you see prices drop you’d expect supply must have gone up. That’s not the case here – Brisbane added just 275 homes to its rental pool in the June quarter, now at 122,094 homes.”

“This drop is all about caution from landlords.”