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Archive for November, 2009

Posted by admin on 18 November 2009

An RP Data report this week gained a lot of media attention, advising of a rent jump in West End of 39% during the September quarter.

This is sensationalist and not correct.

Many inner-south landlords have felt first hand the truth of a market that is flat, and in some cases, slightly down.

Rents on established homes and apartments are, for the most part, not increasing. What is increasing is the number of brand new and near new property on the market for rent. Therefore, higher advertised prices than what we have seen in the past. Not higher prices on the same property. The fine detail of RP Data’s report confirms this – but was not given the emphasis it needed in the reporting!

These brand new property owners have paid a high price for these stunning apartments with city or river views. They’ve budgeted the amount of rental income they need to support the mortgage and they may not be achieving it.

In some cases this influx of brand new apartments, and not enough demand from tenants requiring luxury property, have created some vacant property on the market.

The investor with a 5 or 10 year old property around the corner cannot expect their rent to increase in these circumstances, especially if the new stock is not flying out the door.

The best  measure of rents is the RTA’s report on what new bonds are lodged each quarter. And for the record in West End’s postcode in the September quarter 2 bed apartments dropped 2.2%. Read our Market in a Nutshell report for West End.

Tenants want new, modern, spacious apartments with air conditioning and off street parking but if there are loads of apartments to choose from they’ll quite frequently attempt to knock down the price and try new negotiation techniques on the property manager!

Posted by admin on 16 November 2009

Spring Hill house

One of the things I love about Spring Hill is its winding little backstreets.

This house is a good example of Spring Hill houses where the land doesn’t quite fit all of the house into it! A hundred years ago no-one was too concerned if you built your deck over the footpath.

It might not meet modern approvals but it adds to the charm of the neighbourhood!

Posted by admin on 14 November 2009

Congrats to the Bees Nees City Realty team for taking out honours as Real Estate Agency of the year!

The gong was handed out at last night’s Quest Awards for Business Achievement, recognising Bees Nees’ success from its inner-city base.

The agency is still less than 4 years old and Managing Director Rob Honeycombe says the award is a comment on the team’s support for the local community.

“Our sales and property management staff are really involved in people’s lives in the inner suburbs. We’re helping people move home and invest and  it’s a real compliment to the guys that they’ve been nominated by those clients for the award.”

“They’re a very talented bunch of people and a lot of fun to work with.”

Accepting the Award, Bees Nees salesteam Richard Fleming, Regan Lacey and David Veerman.

Accepting the Award, some members of the Bees Nees sales team

Posted by admin on 12 November 2009

tenants in troubleThis story is courtesy of EBM Insurance. We normally like to write our own but this one’s just too good to pass over!

The old saying that ‘hell hath no fury like a woman scorned’ hit home in dramatic fashion for a Queensland landlord and his ill-fated tenant recently.

This particular claim involves a male tenant who was happily renting a property on the Gold Coast, Queensland. On occasion, his girlfriend would stay at the property with him.

That was until she found out he was married.

Suffice to say, the woman in question was none too pleased to discover her man’s infidelity. But instead of taking it out on him, she chose the property’s carpets and curtains to be the victims of her rage.

Covering a large portion of the property’s carpets with red nail polish, and a little for the curtains as well, the tenant soon found that his behaviour had quite dire consequences. The damage was quite extensive, with nail polish even seeping into the grouting between floor tiles throughout the premises.

One can only imagine the landlord’s shock upon seeing the state of his property and thankfully, this landlord had a RentCoverUltra policy in place. Without delay, the landlord contacted EBM Insurance Brokers who immediately began steps to rectify the situation.

RentCover General Manager Sharon Fox-Slater said this early action by the landlord enabled the claim to be processed quickly and the damage repaired without delay.

“Clearly this claim involves some unique circumstances, but from the landlord’s point of view, he was left with widespread damage which is obviously of great concern,” Ms Fox-Slater said.

“In total, the claim was for approximately $3000, meaning some fairly extensive reparation work was needed.

“Protecting landlords in these types of situations is exactly why RentCover’s range of policies exists. Policies like RentCoverUltra cover property owners for tenant-related damage, and as this claim illustrates, even in circumstances where the damage has been caused by a guest of the tenant.”

Posted by admin on 6 November 2009

Today is Friday and Fridays are for fun! Here’s the best of the emailed jokes we’ve seen lately.

A teenage boy had just passed his driving test and inquired of his father as to when they could discuss his use of the car.

His father said he’d make a deal with his son: ‘You bring your grades up from a C to a B average, study your Bible a little, and get your hair cut.Then we’ll talk about the car.’

The boy thought about that for a moment, decided he’d settle for the offer, and they agreed on it.

After about six weeks his father said, ‘Son, you’ve brought your grades up and I’ve observed that you have been studying your Bible, but I’m disappointed you haven’t had your hair cut.

The boy said, ‘You know, Dad, I’ve been thinking about that, and I’ve noticed in my studies of the Bible that Samson had long hair, John the Baptist had long hair, Moses had long hair….and there’s even strong evidence that Jesus had long hair.’

To this his father replied, ‘Did you also notice they all walked everywhere they went?’

Posted by Rob Honeycombe on 4 November 2009

an older apartment buildingWhen your house is getting tired and needs a facelift the decision to renovate is entirely yours, and you can often borrow against your home’s equity to fund improvements.

Apartments and other bodies corp can be a little trickier. We’ve written before about the challenges of convincing fellow owners it’s time to refurb your building. No-one wants to, or can, dig into their pockets. Regardless of how flash your internal spruce-up might be, the ancient lift or faded tiles in the lobby will hold back the re-sale and rental appeal of your property.

Many lot owners don’t realise a body corp can borrow money – improvements don’t have to mean whopping special levies.

Sure you still need widespread agreement and lots of meetings but the work can be done sooner rather than later. Interest rates aren’t much more than your housing loan and the funding’s effectively unsecured – you’re not offering any property to mortgage.

One Brisbane CBD building recently upgraded a complete air conditioning system at a cost of some $850,000. Mark Goedecke of Direct Deal Finance organised the body corp’s loan. He tells us that rather than raise a special levy or drain the sinking fund it was resolved to borrow the full cost of works.

Mark says this sort of loan means apartment owners have the benefit of having the work done immediately, improving the value of the building, but also the flexibility to pass on the remaining repayments if they choose to sell during the term.

One thing’s for certain – there’s a lot of apartment buildings around inner Brisbane that really need to look at refurbs and upgrades of their common property. Buyers and tenants are turning away before they even get to your front door.

Posted by admin on 3 November 2009
pic courtesy State Library

pic courtesy State Library

Congratulations to the Centenary pool for hitting a half century. The pool originally opened in 1959 to mark 100 years of local government in Brisbane. The complex will celebrate its golden anniversary with a family fun day on 8th November and proceeds will go to the Cancer Council Queensland. The centre is based at 400 Gregory Terrace Spring Hill and if you require further information please call 3821 7665.

Posted by admin on 2 November 2009

During the end of 2008 and beginning of 2009 West End’s house sales again dropped in numbers but grew in value with some of the higher priced property finally coming on to the market. Some of these sales included river-front rambling Queenslanders to raise the median sharply as well as some small sites with townhouse development opportunity.

Quality finished homes which offer buyers the option to move in immediately are in demand whilst demand for renovators seems to have slowed. The median price of apartments grew again with developers heavily changing the face of West End’s river-front, adding plenty of higher end dwellings to attract new residents to the area and those upgrading to apartment living.

The older style apartments are well and truly standing the test of time, attracting attention from first-home owners, single professionals and of course proud, long-term locals.

Get your copy of our “Sales Market in a Nutshell” – click for a full profile on West End real estate.

West End apartment salesWest End house sales

Posted by Rob Honeycombe on 2 November 2009

Highgate Hill’s 2009 volume of house sales has so far dropped by 35% on last year’s turnover with a 9% decline in the median price – lower priced property is on the move which pulls this figure down. See the graphs below for the year to June 30th.

The apartment sales chart decline was even steeper with a reduction in turnover of 51% and a reduction in the median sale price of 34%. A lot of this has been spurred along by first home buyers grabbing the $14,000 grant which resulted in more lower priced properties selling.

Apartment buyers looking around the current median of $360,000 seem to be buying well – if they can convince local home owners to sell! We’re hearing a lot of potential sellers say they’d love to move to a larger home but want to stay in Highgate Hill – if only they could find the right thing.

It’s not all bad news though … one of the most recent sales was a house in Strath Street on 448m2 selling to a developer/renovator for $1.5million. More owner-occupiers made this area their home whilst investor enquiry starts to return to the market.

Get your copy of our “Sales Market in a Nutshell” – click for a full profile on Highgate Hill real estate.

Highgate Hill house salesHighgate Hill apartment sales

Posted by admin on 2 November 2009

After dropping in 2008 apartment prices in this suburb are up slightly so far this year, reflecting a busy time for first home buyers who’ve found plenty of good value in the area. See the graphs below for the year to June 30th.

For most of its residents Spring Hill is really an extension of the CBD yet that little stroll up the hill can still save you $50,000 or more for a comparable apartment. While traditionally an investor-driven market, Spring Hill’s apartments are now regularly being sought out by owner-residents, keen to enjoy the CBD lifestyle.

With recently released projects offering better lifestyle amenities this was inevitable. The larger apartment sizes and more boutique nature of some of the area’s older buildings will ensure they attract buyers wanting a renovation opportunity too.

Despite the median price dropping 20% on 2008 it’s hard to draw any major conclusions on house prices, as the busy part of all inner city markets has been amongst first timers. Cheaper houses have probably gone up in price. Dearer, well-located quality houses are still selling but have had much tougher market conditions.

Renovators are busy adding value to houses but many of these don’t go back to the market. If you’re within walking distance of the CBD you probably have less reason to move than most of us!

Get your copy of our “Sales Market in a Nutshell” – click for a full profile on Spring Hill real estate.

Spring Hill apartment sales