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Posted by admin on 25 July 2011

Are the body corp fees really the single most important feature when you’re choosing a home? The location, the size or the age of the apartment maybe? The views or even the condition of the kitchen perhaps? These are the big ‘value’ items and naturally our ads focus on them. So would it surprise you some buyers are selecting which home to inspect based on the amount of the annual body corp fees? 

We wrote recently about that mythical place called Buyer’s School and the trend for many home buyers to consistently ask similar questions. Surely they’re all attending some briefing session before hitting the open homes! And the latest must-ask question is focused on body corp fees.

Now we’d be the first to acknowledge that these do vary a lot between buildings, but we’re now being asked for the fees before a buyer will even inspect an apartment. Before they want to know about any other features. And it seems to us the focus has drifted to the wrong concerns.

The first comment is this: no-one makes a profit in a body corp. The fees are set with a budget so if they’re higher it’s costing more to run the building. Lifts, onsite management and insurances are big ticket items. So if you’re happy with stairs or waiting a little longer for your lift, you will save money. One CBD tower has 5 lifts for nearly 500 apartments while a South Brisbane mid-rise has 2 lifts for just 40 lots. Of course one is cheaper. Some bodies corp do put a lot away for rainy days; others run tight. You get what you pay for.

Buyers are naturally drawn to low fees but they need to ask if it’s not just a clue that the building is being run on a shoestring. Is the sinking fund forecast being followed? Will they cop a special levy of thousands, payable immediately, for all sorts of unbudgeted expenses? We’re not defending misuse of your funds and we agree that some bodies corp don’t keep a close enough eye on things. But if you’ve ever volunteered your time for a committee you’ll know it’s a thankless job and many owners don’t even bother to vote at the AGM, let along give their input into budgeting. So cut them some slack – or better still, get involved!

Right now we’re witnessing buyers who are spending half a million dollars or more, weighing their choice heavily based on annual fees. If the fees seem $1000/year too much why not offer $5000 less when you buy it and that’ll cover the next few years. And you’ll have time to join the committee and get the place in shape!

Please give us your comments? Why are body corp fees so important to buyers?

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Posted in Brisbane's sales market, real estate marketing | 3 Comments »

Posted by Rob Honeycombe on 14 July 2011

pic courtesy: 2011flood.blogspot.com

Real estate agents, in my humble opinion, are often wrongly cast as fibbers and cheats. A vast majority of us work hard, do the right thing and know that to be in this career for the long term we need to look after our clients.

But occasionally I’m reminded why a handful of idiots drag our industry back into the gutter.

A friend rang the other day, excited that he’d seen an apartment in a near-city suburb that looked like a great buy. From the description it sounded good value and it was close to cafes and a train station. But because we know inner-Brisbane well, my thoughts immediately turned to January’s flood levels. I came back to the office, double-checked the maps and rang to let them know that water had inundated that street.

But the advert didn’t mention it, nor did the agent when the buyer had called to book an appointment. Maybe the water missed this property, so my friends went ahead with the inspection today. They decided to wait for the agent to raise the issue, and after a thorough look through the apartment the conversation went something like this:

Buyer: “This looks great, new floor tiles and fresh paint?”
Agent: “Yep, looks good doesn’t it?”
Buyer: “Ok, anything else we need to know?”
Agent: “Nope, that’s pretty much it.”
Buyer: “What about the flood level in January?”
Agent: “Oh yeah… well yes the water came inside the apartment and (running his hand along a line on the wall 10cm from the floor) rose to about here”.

If confronted this agent might argue that he would have told them about the flood had they proceeded to make an offer. Maybe. But of course this buyer would have preferred to have known in advance so they could make a decision on inspecting or, at worst, have been told at the start of the inspection so they could see the place with a full understanding.

It was 6 months ago yesterday that Brisbane held its collective breath as the murky waters rose from the waterways. Plenty of homes were inundated and there are still buyers for them. Some of the discounts are not as bad as first feared. But covering the facts is childish and illegal.

What a shame January’s floods didn’t flush away more of our rubbish.

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Posted by admin on 1 July 2011

It’s a bit early for real estate agents to start popping champagne, but a new report says we had a 0.2% rise in our median price for the month of May. RP Data-Rismark’s data shows our prices may have bottomed. For the March – May quarter they report a drop of 1.5% so while that May increase might not seem like a big number it’s fairly encouraging!

On the ground this feels right to us. Many sellers are withdrawing from sale and, while buyers are still hesitant, wise heads amongst them say the current prices look like great value.

National valuation firm HTW says this is a time to buy. “Our staff are daily surprised by the seemingly affordable property on offer all around the place and if ever there were a time to have a lazy half million, it would be now. You would find yourself very comfortably looking in a number of areas that seemed until recently out of reach. Think inner city hotspots driven by the café lifestyle.”

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Posted by admin on 27 June 2011

Researchers BIS Shrapnel say Brisbane, Sydney and Perth will lead the nation for capital growth over the next three years, forecasting median house prices in the Sunshine State’s capital to rise 5% per annum.

They’ve released their Residential Property Prospects 2011-2014, tipping Brisbane to reach a median of $505,000 by mid 2014. They point to an undersupply of dwellings and the tightening of rental stock levels as strong indicators of growth. For Brisbane property owners the resources boom may be finally starting to benefit us: 

“With economic conditions and income growth to be strongest in Western Australia and Queensland (and to a lesser extent New South Wales), this should underpin moderate price rises averaging 5% to 6% per annum in the three years to June 2014.”

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Posted in Brisbane's sales market, trends in Brisbane property | No Comments »

Posted by admin on 21 June 2011

There’s an often forgotten key to the growth of Brisbane’s inner-city property market over the past 10 years. Those people we love to beat in rugby league have played a huge role in driving the development of many Brisbane apartment projects, especially during the early 2000’s. And the latest national house prices show New South Welshmen and women may soon be looking to spend their dollars north of the border again.

Sydney’s median house price stands at $515,000 and the graphs are fairly stable for Australia’s largest city. Their market has been solid. In Brisbane we’ve had a big slowdown in sales numbers and our median price is down to $430,000 – now a 24% discount on Sydney. After the busy sales market of 2007-2008 Brisbane was only 6% cheaper than the Cockroach Capital. We’re starting to look cheap.

Many of the Brisbane’s big apartment buildings really only proceeded during 2001-2004 due to strong sales to southern states’ investors. Local agents and developers will argue they had broad appeal – and many did once the market got going. But Sydney-siders especially got our wheels turning. They saw something in Brisbane that locals often couldn’t. Strong population growth, jobs creation through economic strength, the start of a more cosmopolitan and modern (Sydney-ish?) style of living, a sense of optimism and of course better weather.

And now that our prices are so much lower than their own we should expect renewed interest once again. Brisbane’s median house price is cheaper than every capital except Hobart and Adelaide. Yes, even Darwin is dearer. Dig a little amongst the recent sales in some new Brisbane projects and there’s already a pattern of interstate interest. Not all the moons are aligned as they were a decade ago, but with our rents rising and the resources boom driving our employment, NSW investors will find us more and more attractive. 

Even if we beat them in the football!

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Posted in Brisbane's sales market, trends in Brisbane property | No Comments »

Posted by Rob Honeycombe on 30 May 2011

We keep a close eye on what’s for sale in Highgate Hill and there’s been a fairly sizable drop in the numbers over the past couple of weeks. As at today there’s just 11 Highgate Hill houses on the market for example, and of those only 4-5  are actively campaigning (i.e. doing more than just sitting on the web). This peaked at 24 at the time of January’s floods and has stayed around 20 for most of this year.

Local apartment listings are also down with just 24 now for sale, having peaked at 33 just a month ago.

This is positive news for local property owners as it means there’s less for buyers to choose from, and less price competition. It supports our view that very few owners are in a forced-sale situation – many would like to sell and upgrade/downgrade/move elsewhere, but they’re prepared to sit out this current market dip.

Surrounding suburbs are witnessing a similar drop in homes for sale, so if you’re looking to buy you might like to make your move now!

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Posted in Brisbane's sales market, Highgate Hill | No Comments »

Posted by Rob Honeycombe on 25 May 2011

Out there somewhere is a place called Buyer School and they teach home buyers all the questions they need to ask agents. There must be – because at any open home there’ll be at least one buyer who’ll ask us: “So how long it’s been on the market?”, with just a glint in their eye that adds “and I’ll know if you’re bluffing!”

Apparently any answer of more than 3 weeks allows the buyer to nod knowingly and think “So no-one wants this one.”

One of the prominent market researchers is reporting Brisbane’s average days on market as 85 for a house and 90 days for an apartment. So if you buy a place that’s been for sale for 12-13 weeks that just makes you average. And out of interest one American Realtor’s blog we follow reports her local market has an average days on market of 180 – and their market’s improved.

So is this really the most important question for home buyers? Often, more often than not, the seller’s asking price has been adjusted since the home came on the market. RP Data report Brisbane sellers are currently dropping their prices almost 8% between that first day on the market and the final agreed price. Usually the final asking price, the list price at the time the sale happens, is only a couple of a percent higher than the final sale.

Could a better question be: “How long’s it been for sale at this price?” And here’s an insider’s tip: often sellers have run marketing campaigns in their early stages and after a few weeks on the market they’re left with just the web in their promotional toolbox. Less promotion means less enquiry and when interest is lowest that’s your best opportunity to buy well.

Ironically we all desire something most when it’s fresh, sought-after by the crowds and there’s a buzz around the place. In other words, when it’s at its dearest price. For my money I’d do my homework, seek out the place that really suits me, the home that fits the bill, and ignore the crowds. That’s what they should teach at Buyer School!

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Posted in Brisbane's sales market, real estate marketing | 1 Comment »

Posted by admin on 20 May 2011

The official Flood Inquiry progresses and we wait to hear whether there’s an easy place to lay the blame for January’s flooding. In the meantime Brisbane City Council has published their updated FloodWise Property Reports.

If you own a Brisbane property we’d recommend you take the time to check the interim Brisbane flood maps, because home buyers and even some tenants will be making use of them. And they won’t be fully accurate.

So how did they create the maps? The flood line is a joint effort from the State Govt and BCC using aerial photography taken between January 13th and 15th, then verifying these against “digital elevation models and contours”. Naturally some things are hard to spot from the air. Large trees and buildings create shadows, muddy water might be confused with gardens etc.

Apparently in the aftermath of the 1974 floods paint marks on the streets showed where water had reached and no doubt some enterprising intending home-sellers got the metho onto those pretty quickly! In this digital age the public record stands, but it might be worth everyone approaching the maps with some caution.

If you’re looking to buy and aren’t sure about floods levels why not ask a neighbour? Even now, 4 months on, the visible signs are still there with watermarked garden walls for example.

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Posted in Brisbane's rental market, Brisbane's sales market, real estate marketing | No Comments »

Posted by Rob Honeycombe on 18 May 2011

There’s something encouraging and positive in construction starting on a new building, especially when the land has been sitting vacant for many years. So the workers at Annerley Road’s “Dutton Place” have created plenty of comment amongst locals as this tiny suburb’s first major residential development gets underway.

Stockwell Group are behind the 100 apartments and their track record is strong. Their recently completed “Riverpoint” Apartments at West End have earned them good respect from buyers and the property industry alike and despite the cooler property market “Dutton Place” has been selling well, even before the ground-breaking. There’s now just a handful of 1 and 2 bedroom apartments still for sale from $380,000.

Like any good real estate the location is key, and “Dutton Place” is central to a number of the big employment nodes in Brisbane’s inner-city. The Mater and PA hospitals, the CBD itself and, via the new busway link, Qld Uni. The Boggo Road redevelopment is just across the street and has itself been a sleepy, huge, empty development site for a long, long time. Finally CSIRO have moved into their new offices and there’s some activity about the place.

Property development can often be controversial in established areas, but this one is injecting energy and a bunch of new residents  into a neighbourhood.

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Posted in Brisbane's future & new infrastructure, Brisbane's sales market, Dutton Park | No Comments »

Posted by admin on 12 May 2011

The views from 152 Dornoch Terrace

It’s rare to find vacant land in Highgate Hill and opportunities to build a new home don’t come up often. The development of Brydon Street (after a controversial battle with the local community a number of years back) provided around 26 new lots and all but 3 of them are now built on.

So the last couple of listings of land have generated some strong enquiry. We’ve just sold a post-war house in Dornoch Terrace (which isn’t covered by the demolition control precinct) and the number of calls we had was really encouraging. The market’s appetite for an allotment in an elevated location is strong.

Markets come and markets go, but there’s no doubt quality locations retain their appeal where others might falter.

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Posted in Brisbane's sales market, Highgate Hill | No Comments »

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