Millionplus

Homebuyers have spring in their step

noreply@blogger.com (Millionplus.com.au) — Sun, 05 Sep 2010 23:43:00 +0000

Credit:News.com.au

MORE than 100,000 Sydneysiders are waking from winter hibernation ready for a spring home-buying spree that experts predict will jump-start Sydney's property market.

Real estate agencies are anticipating a record flood of inquiries in coming weeks.

They predicted buyers would unleash in October, a late spring bloom brought about by a recent positive turnaround in economic and market sentiment, albeit delayed by the continued stalemate in federal parliament.

The build-up of buyers is like a coiled spring, Sam White from Ray White told The Daily Telegraph.

He said agents were anticipating more than 100,000 Sydneysiders would go head-to-head for limited property in the next three months, with roughly 24,000 homes expected to change hands.

"Spring will see the usual spring rush, but perhaps even more so because people are getting much more confident about the market," he said.

Last spring brought the biggest quarter of sales since 2002, helped substantially by the mad scramble from first-homebuyers making the most of an increase in the Federal Government's First Home Buyer's Grant.

With a distinct lack of first-homebuyers this spring, agents believe their place will be taken by investors and families wishing to upgrade.

Laing+Simmons general manager Leanne Pilkington said a shortage of available property would ensure Sydney house prices rose.

"Underlying demand remains strong and the critical supply shortage will continue to buoy prices across all grades of property," she said.

"The spotlight this spring may well be on more affordable suburbs in Sydney's west and southwest."

McGrath chief executive John McGrath said spring would also be a "strong selling market" with more listings and growing buyer confidence courtesy of an improving economy.

With luck, recently engaged couple Alana Rose Bognar and Nicholas Horder will be off the house-hunting merry-go-round just as the market hits its stride.

They have their hearts set on a postcard-perfect Paddington cottage that goes up for auction at 9.45am today.

Having searched for the past four months they have noticed an increase in the number of properties being listed. "Winter has been pretty quiet but we have seen a bit more come into the market in the past month," Ms Rose Bognar said.

Credit:News.com.au

John McGrath tips Sydney property growth of up to 10% in next 12 months, but experts cautious

noreply@blogger.com (Millionplus.com.au) — Fri, 03 Sep 2010 00:12:00 +0000

Credit: Patrick Stafford Smart Company
Property experts say price increases of 10% in Sydney over the next year aren't outside the realm of possibility, but growth depends on how the market performs in the next few months and different areas could see higher growth than others.

The comments come after McGrath Estate Agents managing director John McGrath made the prediction this morning that some markets in Sydney could see price rises of 10% over the next year.

That prediction comes after a number of experts and analysts have said the market will remain mostly flat over the next year due to an increased number of listings and fewer buyers caused by higher interest rates.

McGrath was contacted for comment this morning but no reply was received before publication.

The most recent RP Data figures show prices in Sydney grew by just 0.3% in the three months to July 31. For the year to that date, prices grew by 6.5%.

SQM Research founder Louis Christopher says a 10% increase in Sydney isn't necessarily impossible, but the next few months will determine how the market performs over the year.

"There are some sectors within Sydney where listings have not risen, and those areas tend to be in the inner-city and urban locations, and so I would argue that Sydney is largely just holding its value."

"Except for the top market where we are seeing heavy discounting, I think the rest of the market is okay. However, I don't think it's necessarily rising."

Christopher says debate around price growth must focus on location. He points to areas in southeast Queensland where prices are falling, in contrast to Melbourne where prices have corrected themselves, but with relatively few price falls.

As a result, he says there may be some areas in Sydney where prices increase by 10%, however unlikely that may be, and the outcome over the next year will be determined by the Spring selling season.

"Spring is going to tell a story, specifically in how many listings we see on the market and how quickly things move. A 10% increase in some areas is not outside the realm of possibility, but it depends on the next few months."

"I think the most likely outcome is that we'll see a relatively flat market with growth of no more than 5%. A 10% prediction is not outrageous, but unlikely for the whole country."

Australian Property Monitors general manager Anthony Ishac says there are some areas of Sydney that could see 10% increases, but again, those depend on location and the types of properties being sold.

McGrath told the Australian Financial Review this morning he believes properties up to $2 million may see price increase of between 7-10% over the next 12 months, although sellers of properties worth above $2 million are waiting for some more activity.

Ishac says this makes sense, given there is so much discounting occurring in the prestige property market, not only in Sydney but markets across the country.

This comes after the RP Data revealed the most expensive 20% of properties recording the highest falls during the quarter to July 31.

Ishac sticks to the prediction certain markets may see rises of 10%, but not necessarily in Sydney and certainly not nation-wide.

"I think it's going to be difficult to have that type of performance in the next 12 months, even though there is low unemployment. There is going to be subdued growth."

"It all depends on the location. Different segments perform differently, and the other thing we're facing is that with Spring there is so much more supply and the buyers have the upper hand. Higher price gains will be difficult, in any market."

Credit: Patrick Stafford Smart Company

House prices up 0.4% in July, RP Data predicts little growth for the remainder of 2010

noreply@blogger.com (Millionplus.com.au) — Wed, 01 Sep 2010 00:08:00 +0000

Credit: Smart Company

Australian house prices grew by a seasonally adjusted 0.4% during July, following on from a 1% fall in June, according to the latest RP Data-Rismark figures.

The research found that in the July quarter, national city dwelling values were down 0.8% with a median dwelling price of $465,000. However, prices over the year were up by 9.7%.

Darwin performed the strongest in the three months to July, with values up 1.1%, while Brisbane and Perth both recorded a 2.5% fall.

Sydney values rose by 0.3% during the quarter, with Melbourne values falling by 1.1%. Adelaide prices rose by 0.2% and Hobart prices also fell by 2.4%.

RP Data research director Tim Lawless said in a statement the result shows the housing market is recording a soft landing, following a boom over the past 18 months.

"In the period between end 2008 and March 2010, Australian home values rose by 16.3%. Yet monthly growth rates have declined consistently since the start of the year," he said.

"RP Data and Rismark expect to see the market track sideways over the second half of the year. There is the possibility of modest gains if mortgage rates remain in check and economic conditions improve."

Rismark International managing director Christopher Joye also said in a statement the figures dispel the myth that housing prices would begin to fall.

"Australia's housing market appears to have gravitated back to a no-to-very low growth trajectory, as we forecast."

"Looking forward, I would expect to see the major banks pushing housing credit growth a little harder as profitability gains – driven by reduced impairment provisions across their business lending books – dissipate."

This comment comes as a number of banking institutions, including Westpac, BankWest and non-bank lender Yellow Brick Road, have introduced a number of measures in order to attract first home buyers.

"Australian housing credit growth has been running at record low levels, and has experienced a downward trend since 2006. An increase in credit growth back to reasonable single-digit rates will provide further support to the market in the next 12 months."

Credit: Smart Company

Let's end house price hysteria

noreply@blogger.com (Millionplus.com.au) — Wed, 01 Sep 2010 00:04:00 +0000

Credit: Christopher Joye

It would appear that my old sparring partner, Associate Professor Steve Keen, has once again got his calls wrong.

Following the release of RP Data-Rismark’s June house price index results, which recorded the first fall in Australian home values in 17 months, Keen wrote with glee that he expected to see "an accelerating rate of decline in [Australian] house prices now, as they did in the USA when 'flip that house' ceased being a winning trade." That’s right – it was a bold bet: an “accelerating rate of decline”.

Now remember that this came from the same man who during the GFC told us that the price of Australian housing was going to "fall by 40 per cent or so within a few years", that a depression in Australia was “almost a certainty … best case scenario is a recession more severe than 1990 lasting one and a half times as long” and that Australia’s unemployment rate would rise to “double digits”. You get the drift. Of course, it makes for terrific media fodder.

Sadly for Dr Keen, RP Data-Rismark’s July house price index results have proven him wrong yet again. After a large 1.0 per cent seasonally-adjusted fall in the month of June, Australian home values were little changed in July, recording a raw increase of 0.1 per cent (+0.4 per cent seasonally-adjusted). The previously-reported June quarter result was revised down slightly to -0.1 per cent (was +0.1 per cent). Put more bluntly, there is no acceleration in house price losses to be seen here.

Prestige purchases on the rise

noreply@blogger.com (Millionplus.com.au) — Tue, 24 Aug 2010 23:44:00 +0000

Credit:REINSW
Sales of prestige homes were up 3.35 per cent on the previous quarter, reveals a report for REINSW by valuer Dyson Austen.

In three months, 10 Sydney homes have been purchased for a total of more than $120 million. An interest rate rise of 0.5 per cent and stock market decline of 11.6 per cent weren’t a deterrent to these pricey purchases.

The prestige market bottomed in the June quarter of 2009. It has since risen by more than nine per cent. However, this is still lower than the overall increase in Sydney house prices by 21.4 per cent over the same period, according to the Australian Bureau of Statistics.

Credit:REINSW

Island holiday homes beckon for Aussies

noreply@blogger.com (Millionplus.com.au) — Mon, 23 Aug 2010 00:56:00 +0000

Credit: News.com.au
FORGET the traditional shack on the coast - Australians are taking advantage of the strong Aussie dollar and abundance of budget flights to buy holiday homes overseas instead.

Fiji, Bali and Malaysia are among the most popular destinations for people looking to buy international properties as investments and vacation getaways.

"There's an increased number of people buying in New Zealand as well and that's mainly due to the fact they have some favourable exemptions there, such as no capital-gains tax," Property Planning Australia director Angelo Piazetta said.

"I think it just depends on who has the best marketing - in the past year people have been interested in Malaysia because there's new complexes or apartments going up there."

Bob Lowres and his wife, Libby, had been looking to buy a property in Noosa, but decided they could get more bang for their buck in Fiji when they decided to move from Brisbane eight years ago.

But when Mr Lowres felt he wasn't quite ready to retire, the developer started looking for development opportunities and stumbled across Naisoso Island, where you can buy land and build a house from $500,000.

A $400 million master-planned resort, which will have 150 beachfront apartments, a four and five-star hotel, wellness centre and marina, has been so popular with Australians it is being dubbed "the new Niseko".

"When I was growing up the family holiday was very much the beachside home," he said.

"Now many baby boomers are reaching retirement, they want to enjoy it and I don't think this generation likes to rough it."

Real estate agent Carol West, from The Professionals Fiji, said the number of Australians buying there had doubled in the past two years.

Most Australian buyers were baby boomers and retirees from the Gold Coast, Sydney and Melbourne and a few from Adelaide and Noosa.

Ms West said people were realising how far their dollar could go there and that there were four airlines linking the countries.

"You can buy a property on Denarau for around $400,000 and the competition between the airlines drives the price of flights down," she said.

"People are realising they can get on a plane and be here in a few hours and be in a different world."

Credit: News.com.au

Finding your property investment's inner strength

noreply@blogger.com (Millionplus.com.au) — Wed, 18 Aug 2010 23:30:00 +0000

Credit: Eddie van Pamelen
As the property market takes a breather and prices that were booming earlier this year start to cool off, it’s important for investors to remember one of the critical rules when it comes to buying property; location is key.

When we enter the slower phase of a property cycle, as seems to be occurring now, the importance of location becomes very apparent.

As most seasoned investors know, part of growing a successful portfolio is purchasing in tried and tested areas that consistently provide strong, above average, long term capital growth.

In our experience, the most proven suburbs are always found around the inner areas of Australia’s major capital cities and bayside locations. You don’t have to take my word for it; just consider data recently released by the Real Estate Institute of Victoria that clearly shows inner Melbourne house prices have significantly outperformed their more distant counterparts over the last decade.

The REIV figures demonstrate that inner city property owners have done considerably better than those in the middle and outer rings, as house prices within 10 kilometres of Melbourne CBD have risen by 88% since 2005, compared with 80% for suburbs within a 10 to 20 km radius of the CBD and only 53% for outlying areas.

So why does this trend continue? Quite simply, it is the result of supply and demand and the perpetual imbalance between these two factors that exists around our capital cities.

Demand for inner city living continues to grow, as people seek to live closer to their work, good public transport links and shopping and entertainment hubs; essentially, sought after inner city suburbs that offer a modern lifestyle for young singles and couples just keep gaining popularity.

However, land in these areas is simply unavailable; they’re not making anymore and most of the existing land is already built out. In other words, even though demand continues to escalate from a booming population, the supply of dwellings around the inner ring of Melbourne’s CBD is very limited. It is this imbalance that causes property prices to rise.

Conversely, in the outer suburbs that have shown the least growth over the last five years, supply generally outweighs demand. These areas are traditionally not as sought after due to their distance from employment and infrastructure and there’s often large tracts of developable land still available; it’s the combination of these factors that tends to keep a lid on property prices in Melbourne’s outer corridors.

The REIV’s communications manager Robert Larocca says quality of housing doesn’t seem as important when it comes to inner city property values; rather it is the mere fact of close proximity to the CBD.

He says you only have to consider the two markedly different inner city suburbs of Camberwell and Footscray. In the prestigious neighbourhood of Camberwell, the median house price was just over $1.5 million in the March quarter this year, while Footscray’s median house price was a more affordable $563,500. Yet in both neighbourhoods, prices have risen by 201% in the last decade.

Leading the field when it comes to house price growth in the inner city since 2000 was South Yarra, with a 314% increase, followed by Malvern (303%), Hawthorn East (261%) and rounding off the top five were Kew and Prahran on an equal 257%. It’s interesting to note that all of these areas are in the South Eastern or Eastern corridors of Melbourne’s inner city.

Morgan Stanley analyst bearish on housing market

noreply@blogger.com (Millionplus.com.au) — Wed, 18 Aug 2010 06:31:00 +0000

Credit:News.com.au

Australia in housing bubble, analyst says
Could be pricked if banks tighten credit
Owner-occupiers in "too much debt"

LOCAL property investors have become "Ponzi borrowers" in a market 40 per cent overvalued, according to a Morgan Stanley strategist.

In a bearish note to clients this morning, Morgan Stanley strategist chief strategist Gerard Minack warned Australia's housing "bubble" could be pricked should banks tighten credit or "loss-making" middle-class landlords start to sell.

He argues owner-occupiers are in too much debt and investors are riskily relying on capital gains to repay their loans and interest repayments, The Australian reported.

Compounding the problem is "ill-advised policy", such as the government's first home-buyers grant, which has combined to make Australian houses "40 per cent above fair value", Mr Minack says.

"Buying an asset that's over-priced never ends well," he said. "The real return on residential property over the next decade is likely to be negative, in my view."

"Owner-occupiers have played a game of financial chicken, competing for property by taking on increasingly imprudent amounts of debt.

"Investors have become Ponzi borrowers -- Hyman Minsky's term for borrowers who rely on capital gains to repay debt and interest -- in the belief that housing is a sure-fire long-term investment. History shows that it isn't."

Australian Bureau of Statistics figures show overall average house prices rose 18.4 per cent for the full year to June, with Sydney prices rising 21.4 per cent -- the largest since it began recording these figures in 2002.|

But the rate of growth has been slowing in recent months as rising interest rates feed through the economy.

Commonwealth Bank of Australia, the nation's largest bank by market value, also warned last week it could be forced to raise rates independent of the Reserve Bank. CBA's full-year results showed some key business units were struggling with higher costs.

On the positive side, Mr Minack said the most plausible trigger for a correction in the Australian housing market -- broad-based jobs losses -- doesn't appear likely in the near term. This means big price declines in the near term "seems low".

Australia's jobless rate rose to 5.3 per cent in July, from 5.1 per cent, as more people decided to look for work and as full-time employment fell for the first time in 11 months.

The RBA – one of the few central bank's in the developed world to raise rates since the global financial crisis -- has been on hold since May as six rate rises since October feed through the economy. The official cash rate stands at 4.5 per cent.

But Mr Minack said Australia dodging of the worst of the global financial crisis didn't demonstrate that there's no housing bubble.

"I'm not persuaded by arguments that houses are sustainably priced; I'm not persuaded by the view that debt is not a problem; and I'm not persuaded that policy-makers could prevent collateral damage to banks," he said.

Credit:News.com.au

Halving of Bryon Bay coastal property land values a warning to other coastal property owners: Expert

noreply@blogger.com (Millionplus.com.au) — Fri, 06 Aug 2010 05:18:00 +0000

Credit:Smart Company

The New South Wales valuer-general has cut the price of pieces of land on a beachfront near Byron Bay by 50%, due to the dangers of coastal erosion.

But property expert and SQM Research founder Louis Christopher says the issue is not so much that properties have been stripped of their value, but how the market and local council will react to this new development in other areas.

The decision is the latest in a series of controversial decisions involving property owners on the Byron Bay coast, which has seen widespread protests against the Bryan Bay council.

"It's something that is a threat to certain coastal parts of Byron Bay, and in Northern Sydney as well. The issue is not so much that water is going to overcome and destroy these homes, but what the market is going to do to react to it."

The issue is that beachfront properties are at risk to rising sea levels, caused by gradual global warming. A number of storm surges have begun to erode the coast, putting these properties at risk.

A number of properties have actually been put up for sale, but very few buyers are attracted, and Christopher says this decision will only make that situation worse.

"This issue is going to get worse because now, everybody knows about it and it will spread to other areas. But it boils down to how councils are going to react, because it can make the situation a heck of a lot worse for homeowners or it can improve the situation through responsible planning."

Other markets, particularly in Queensland and Sydney, have the same erosion problem and Christopher says these decisions could spread.

There have been a number of battles between these costal property owners and the Byron Bay council. Late last year residents won the right to defend their properties against coastal erosion instead of being forced to abandon their homes, which is the proposal being pushed by the council if erosion becomes too dangerous.

Some analysts say properties could have even been affected by the council's decision to pursue that abandonment policy. "Some of the properties in Byron Bay have been affected by how the council has responded," Christopher says.

The new valuation will allow the council to determine what rates should be paid. But Christopher warns the Byron Bay market could be affected by any rash council decisions, such as pursuing the abandonment policy, and believes any decision must be carefully thought out.

"This is an issue in itself – how the council responds to this ongoing threat. In very draconian ways the council can destroy value, and we need to watch how that is ongoing."

The actual decision to strip the land's value was forecast by the valuer-general's office some time ago. This morning, a spokesperson told SmartCompany the decision to slash the land values was actually made several months ago, and ratepayers were told at the time.

"This is all part of a general process of revaluating properties, and this was actually forecast six months ago to ratepayers. They have known about this decision for six months."

Credit:Smart Company

Cruising the world's richest streets

noreply@blogger.com (Millionplus.com.au) — Mon, 02 Aug 2010 23:36:00 +0000

Credit:Smart Company
There are plenty of property vendors around Australia who can sympathise with the corporate undertakers from insolvency firm PPB, who are trying to sort out the $1 billion collapse of coal and cattle baron Ric Stowe.

As residential markets around Australia cool, sellers are suddenly discovering that buyers are just that bit harder to find, and their cheque books are that bit harder to open.

That’s exactly the problem confronting Perth real estate agent Andrew Porteous. He’s been engaged by PPB to try and sell Ric Stowe's sprawling mansion Devereaux Farm, which has five separate houses, two pools and a chapel.

The pile has a price tag of about $68 million, but Porteous is struggling to find a buyer. Things have got so grim that he’s now talking about subdividing the property into 16 separate parcels in order to get the best return.

Porteous might be struggling to pull off what would be Australia’s most expensive ever house sale, but it would be wrong to think that Australia is in the middle of prestige property sales drought.

The last 12 months has seen price records set for home in Perth, Melbourne and Canberra, and a string of big sales in Sydney.

And this week came the news that confirms that Australia is holding its own in the prestige property world, with Sydney’s richest strip holding its place on the annual list of the world’s most expensive streets.

The list, compiled by website Financial News with some help from top-end real estate companies Knight Frank and Savills, has become something of a barometer of how the ultra-rich are travelling.

In 2009, the value of homes on the pricey strips fell by an average of 12% as the GFC rocked wealthy entrepreneurs all over the world.

This year, average values are down 15%, but a closer inspection of the list highlights the gap between the wealthy of the West (Europe and North America) and those of the East (Asia).

For example, topping this year’s list is Hong Kong’s Severn Road, where property has been valued at $US70,000 per square metre this year after valuations plunged to $US40,000 last year. Hong Kong’s property market is flying, spurred by booming wealth levels in mainland China. Last week, a development company paid a staggering $1.5 billion for a plot of land at prestigious Victoria Peak.

On the other side of the world, in beautiful France, luxury property prices are heading the other way. Chemin de Saint-Hospice, as 15-house street in Cap Ferrat, just east of Nice, fell from second on the list to fifth, after valuations tumbled 45%. Avenue Montaigne, which is in the heart of Paris’ 'Golden Triangle' of luxury addresses, has also seen valuations drop 40% to $US32,000 per square metre.

As well as the generally poor state of the European economy, commentators say the strength of the Euro over the last year has also been a deterrent for buyers.

Things have been better at two of the world’s best-known prestige strips, London’s Kensington Gardens (where prices have been steady at $US65,000 per square metre) and New York’s Fifth Avenue (where prices fell 10% to $US65,000).

The only other street to increase in value this year was Ostozhenka in Moscow, where prices increased 14% to $US40,000 per square metre.

Coming in again at number 10 on the list was Australia’s only entrant: Wolseley Road in the ritzy Sydney suburb of Point Piper, where prices were steady for the second consecutive year at $US28,000 per square metre.

The street, which is home to wealthy entrepreneurs including John Symond and Frank Lowy, is known as Australia’s premiere address thanks to its stunning harbour views.

The price tags are astronomical. Financial News says recruitment entrepreneur Andrew Banks listed his mansion earlier this year with an asking price of $US53 million, while a mansion owned by the late rich list members Peter and Ruth Simon was put on the sale block for $60 million last year (apparently it remains up for sale).

According to a recent list of the biggest sales in Sydney last financial year, published by the Sydney Morning Herald, Wolseley Road was home to the seventh biggest sale of 2009-10, with one home selling for a reported $11.9 million.

Tony Crabb, national head of research at Savills Australia, says conditions at the top end of Australia’s residential market – which he categorises as the $2 million-plus bracket – have recovered well since the GFC and are now stable.

“The top end of our residential market took a fair old beating at the height of the GFC and we saw drops as high as 30% in some areas,” Crabb says.

He says the big problem was margin calls, which forced wealthy entrepreneurs to offload equities and properties.

“As equity prices declined in 2008 and 2009, those top end suburbs were shattered, particularly in Sydney. There were sellers everywhere, and of course no buyers,” he says.

But things are now back to normal.

“The forced sellers have all been forced, and the market has rebounded and then some. We’re seeing normal trading conditions and there is depth in the market and a better balance between buyers and sellers,“ he says.

It’s a similar story in Brisbane, where buyers’ agent Scott McGeever of Property Searchers says the $1 million-plus segment of the market remains strong.

“The top end of the market is just not susceptible to interest rates,” he says.

“Those sort of marquee properties that people tend to pay the big money for always do well – properties that have fantastic views, big land and are close to the city.”

A string of recent mansion sales support the view that prestige property remains buoyant.

In November 2009, a Perth mansion belonging to billionaire mining heir Angela Bennett was sold for an Australian-record price of $57.5 million to Chris Ellison, founder and major shareholder in mining services company Mineral Resources.

In March, the Inge family set a Melbourne record when they sold a mansion in the up-market suburb of Toorak to property developer Harry Stamoulis for $25 million.

Even Canberra has seen a record price, when a businessman paid $7.3 million for a five-bedroom mansion in the suburb of Red Hill.

According to the SMH list, the top seller in Sydney last financial year was a three-level 'European-style' villa called Carrara, in the suburb of Vaucluse. It was offloaded by private equity investor Patrick Keenan and his wife Elizabeth for an estimated $26.75 million.

Of course, that is still well below the biggest ever sale recorded in Sydney, which was set back in 2008 when currency trader Ivan Ritossa and his wife paid $45 million for a Vaucluse mansion called Coolong.

However, that record may be tested this spring, when Point Piper mansion Altona, owned by Deke and Eve Miskin, is put up for sale with an asking price of $40-45 million.

Looking forward, Tony Crabb is confident the top end of the market will remain stable, providing share prices and company profits remain relatively strong.

“There certainly isn’t reluctance at the top end of the market. Consensus is that the economy is continuing to recover and gaining strength. There doesn’t seem to be anything on the horizon that would see that being de-railed,” he says.

He says a new mini mining boom and improving financial services profits could even see more buyers emerge.

Andrew Porteous and the insolvency experts trying to sell Ric Stowe’s Devereaux Farm certainly hope he is right.

Credit:Smart Company

Orpheus Island Resort expected to fetch $10m

noreply@blogger.com (Millionplus.com.au) — Sun, 01 Aug 2010 23:56:00 +0000

Credit:The Wall Street Journal

AN island that has been a holiday destination for stars such as Elton John and Phil Collins is for sale.

The Orpheus Island Resort on the Great Barrier Reef has been placed on the market with price expectations of more than $10 million.

As well as John and Collins, it is understood Hollywood stars Mickey Rooney and Vivien Leigh, who starred in the 1939 Hollywood classic Gone With the Wind, have also stayed at the glamorous resort.

The island is 190km south of Cairns and 80km north of Townsville.

The 3ha resort is being sold with a 7ha elevated lot that has development potential.

The entire 1368ha island is mainly national park.

Paul Nyholt of CB Richard Ellis and Pat Kelly of Burgess Rawson are marketing the property, which was purchased about three years ago for $15m.

The resort is limited to 42 guests and includes 21 waterfront guest rooms, fully licensed bar and restaurant, gymnasium, tennis court, two swimming pools and guest facilities.

The property is being offered for sale through expressions of interest, which close on September 16.

Credit:The Wall Street Journal

Staging your home to sell: can stylish presentation deliver a stronger sale price?

noreply@blogger.com (Millionplus.com.au) — Tue, 27 Jul 2010 23:56:00 +0000

Credit: Aussie

Presenting a home for sale is about more than cut flowers in a vase, or the smell of freshly baked bread in the air. It’s serious business, and can be the difference between a disappointing sale price and a spectacular result.

These days, there are a range of sprucing-up services and options that promise to achieve top dollar for your home’s sale. And in a market tinged with uncertainty, it might be just the sales pitch you need.

According to RPData, the current average time on the market is about 39 days for homes and 31 days for units, with the average level of vendor discounting at around 5.5 per cent – both indicators of a relatively healthy market.

But there are also subtle signs of ‘slowth’, with auction clearance rates continuing their sluggish performance. In May, capital cities recorded their second consecutive month of single digit annualised growth, suggesting the strong surge in property prices of the last 18 months may have run its course.

According to Richard Armstrong, Director of The Makeover Group and author of Sell Your Home for More in Any Economy, an uncertain market doesn’t mean vendors need to settle for lower prices. In fact, a little sprucing up of the place can go a long way to securing a much improved price tag.

What is it worth?

So just how much difference does a pre-sale makeover make? Armstrong has seen clients achieve an increase in sale price up to ten times what they’ve spent on presentation, but says you can comfortably expect three dollars back for every one dollar you invest.

“If you’re expecting to be able to enhance the price by $30,000 then a $10,000 investment is not unreasonable,” says Armstrong. “Where it gets dangerous and you start overcapitalising is when you start getting to have the best house in the street. [But] if you sell it without sprucing it up to at least the average standard in the street then you are literally throwing away money.”

Armstrong says the greater the value of the property, the less risk there is that you’ll overcapitalise, and the more you should invest in it. “A $1.5 million house in a good suburb with a good bathroom instead of an average bathroom – it makes a $100,000 difference easily. Whereas if you do the same case study in a suburb where the average house price is $400,000… you might get an extra $40,000.”

Either way, at the median price of a mid-range new bathroom sitting at $10,200, it’s a return on investment that commands attention.

A quicker sale?

It’s an investment that could also help to avoid a lengthy, expensive and disappointing period on the market.

“The more buyers you turn off by not having it properly presented, the longer it will take to sell,” says Paul Davies, Managing Director of One Agency Real Estate. “That can mean advertising dollars, and also we’ve found statistically that the longer a property stays on the market, the less a vendor may receive because the market views the property as [one where] something may be wrong with it.”

Creating a favourable first impression with a buyer is crucial in securing their confidence in the property. “If you don’t create a positive first impression then you have to ignite their interest further into it, and reverse their initial impression,” says Davies. “That’s much more difficult to do.”

If your home is already on the market and not dressed for success, don’t despair. “There’s new buyers in the marketplace all the time so there’s always a new opportunity,” says Davies. “It’s never too late.”

Credit: Aussie

Why house prices will hardly grow in the second half of 2010: Christopher Joye

noreply@blogger.com (Millionplus.com.au) — Tue, 27 Jul 2010 05:46:00 +0000

Credit: Christopher Joye

With so much conjecture about house price bubbles doing the rounds, which, frankly, appears to be a universal constant in our public dialogue these days, the June quarter release of data from RP Data-Rismark, APM and the ABS will offer a fascinating insight into what is actually happening in the market.

This topic has been made all the more interesting by questions asked by ASIC about why investment banks have not developed products to help mums and dads hedge house price risk (I made a similar point at some length in a 2003 report). In a speech this week, ASIC’s respected chief economist, Alex Erskine, commented:

“[L]ittle has been done to reduce information asymmetries disadvantaging buyers or to enable households to hedge their house price risks... Robert Shiller has been one of the few academics who have expounded the virtues of extending some of the innovations in finance to housing, with proposals for housing price derivatives to allow households to hedge their risks...A better housing market would involve a transparent on-exchange securities market overseen by market conduct regulators … and facilitated by risk management and hedging instruments.”

I should disclose here that RP Data, Rismark and the Australian Securities Exchange are working on a new listed market to liberate exactly the kinds of opportunities that ASIC’s chief economist outlines above. Today there are also emerging over-the-counter options to short (or hedge) Australia’s housing market. This is likely to be a very popular trade with overseas hedge funds, which tend to be bearish on Australia's housing market based on the recent US and UK episodes.**

Since October last year we have been projecting a sustained cooling in conditions back to single-digit growth rates. In the 12 months to the end of March 2010, Australian dwelling prices rose by a frisky 1% per month, or 12% in annualised terms. It took perhaps a little longer than we expected for the normalisation in headline mortgage rates from their low of 5.75% during the GFC back to 7.4% in May to bite into housing demand.

But the evidence is increasingly clear that our 'priors' were right. In RP Data-Rismark’s monthly data (APM and the ABS only report quarterly) we have witnessed the first signs of a significant deceleration in capital growth, which the RBA has also pointed to. On a seasonally adjusted basis, RP Data-Rismark recorded dwelling price growth across Australia’s capital cities of just 0.4% and 0.5% in Aril and May, respectively. That is, residential property price gains had halved from their 2009 pace.*

In the non-capital city regions, which account for about 40% of all homes, dwelling price growth was never particularly strong. In 2009, RP Data-Rismark’s Rest of State index registered an increase of just 7.4% after falling 3.9% in 2008. This year, Australia’s non-capital markets have experienced effectively no growth with cumulative capital gains of only 0.7%.

The question now is what happened to house prices in the June quarter. Since we already know the results of two-thirds of the data for the second quarter (ie, April and May), which generated total growth of just 1%, it is a fair bet that the second quarter results are going to be substantially less than the first quarter outcome of 3.4% (on a seasonally adjusted basis).

Any further softening should also be more accentuated in our monthly measures, which are not subject to the pooling biases that result in higher weights to the early months in APM and the ABS's quarterly models (ie, in the event that April and May have higher growth than June).

In thinking about current housing market dynamics, we have three leading indicators that we can reflect on: new listings; housing finance approvals; and auction clearance rates.

We know that new home loan flows have been relatively weak, and we certainly don’t have anything remotely like a credit-fuelled boom on our hands, as the RBA has argued.

The new listings story is an interesting one. Listings represent effective housing supply—that is, the stock of homes available for purchase in the market. In 2010 we’ve documented a large increase in vendors coming to market after surprisingly low levels of listings in 2009.

Last year it was almost as if vendors disregarded the underlying housing market recovery and were spooked to the sidelines by a combination of the contrails of the GFC and perhaps the never-ending Steve Keen media tsunami.

But this year the supply side has surged back into business, which can naturally place downward pressure on overall price growth.

The final piece of the puzzle is the well-known deterioration in auction clearance rates. In Sydney and Melbourne, which are the two major auction markets, clearance rates have declined from the circa 80% levels (associated with double digit capital growth) back to more subdued 60 per cent levels, which is where they have been bobbing along for several months now.

As the chart below shows, the weaker sales market has in turn meant that relistings of unsold homes have risen in the past few months.

Homes worth more on a street than on a road

noreply@blogger.com (Millionplus.com.au) — Mon, 26 Jul 2010 01:34:00 +0000

Credit:News.com.au

ADDRESSES containing the word "street" are worth $100,000 more than those ending in "road".

But people who live in avenues, esplanades or parades are doing as much as $400,000 better.

Analysis of NSW home values based on thoroughfare types has shown the average price of a house on a street is $516,000, compared with $409,000 for a dwelling on a road.

Boulevards, avenues and esplanades have average prices hitting $511,000, $649,000 and $809,000 respectively, while those on a parade come in at an average of $641,000.

"This shows there is a clear tendency for certain street types to be used in high-cost areas," said John Edwards, managing director of research agency Residex, which compiled the figures.

"Gardens" is the most often used high-value name, with just 54 in NSW carrying an average value of $1.18 million.

The lowest-cost thoroughfare with any significant usage is "route". There are 36 "routes" in NSW, and the average house price is $251,000.

"Highway" dwellers fare worse than those on "roads", with an average value of $381,000.

By far the most common names are "road", with almost 48,480 in NSW, and "street", with 37,485. These are followed in popularity by "place" (11,783), "avenue" (11,557), "lane" (9995) and "close" (6016).

The label "street" was the main type used in new estates, as "road" gave the impression of a busy thoroughfare full of traffic, Barry Mann, head of residential development in NSW for developer Stockland, said.

Five main names were used in Stockland estates, Mr Mann said.

"Street types should also help you navigate through a neighbourhood.

"The word 'street' is more community-focused and local in nature, whereas 'ways' are typically short and narrow and connect two places."

Street types in housing estates were strategically chosen, Australand NSW chief executive Tony Pizzolato said.

"There's no point having a waterfront street name like 'esplanade' on a normal suburban street, for instance.

"It won't make people want to buy if you don't back it up with landscaping or actually having a waterfront."

Credit:News.com.au

Auctions continue less than impressive run

noreply@blogger.com (Millionplus.com.au) — Mon, 26 Jul 2010 01:24:00 +0000

Credit: The Adviser

Auction clearance activity remained relatively stable over the weekend, with Sydney clearing 69.4 per cent of properties.

According to Australian Property Monitors, the capital city’s clearance rate was up slightly on last weekend weekend’s 55.4 per cent, and relatively on par with the 67.5 per cent recorded this time last year.

A five bedroom house in Glebe was the most expensive property sold over the weekend, going under the hammer for $2.7 million.

The least expensive property was a three bedroom unit in Carramar, which sold for $231,000.

The news in Melbourne was much the same, with the city achieving a clearance rate of 56.3 per cent.

Real Estate Institute of Victoria chief executive officer Enzo Raimondo says this trend of average auction clearance rates will continue now until the election is over.

Analysis of auction sales figures by the REIV shows that, not unlike a public holiday or the AFL Grand Final, the Federal Election can affect auction activity.

In 2007 the Federal election was held on the 24th of November, which, unlike this year, was the peak of the spring selling season.

In response to the election announcement, it is apparent that some vendors, in conjunction with the estate agents, shifted their auctions to the weeks before and after the election.

There were 897 auctions the fortnight before the election, and in the weekend previous to that, 1197. On Election Day, the numbers dropped to 689 before lifting again to 997 the weekend after.

Credit: The Adviser

Buyers start to return as house prices cool further

noreply@blogger.com (Millionplus.com.au) — Tue, 20 Jul 2010 00:28:00 +0000

Credit: Patrick Stafford Smart Company
Experts suggest buyers may be returning to the property market as prices return to more normal levels as new house price Residex figures show price growth is continuing to cool.

The Residex figures show house prices have continued to soften, as demand backs off due to higher interest rates. Prices rose nationally by 1.1% in June, and by 3.4% for the second quarter as a whole.

The strongest price growth was recorded in Sydney at 3%, with median values now at $677,000 for houses and $465,000 for units, while Adelaide recorded 1.1% growth to $408,500 for houses and $313,000 for units.

Melbourne, which experts have pointed to as the hottest property market of the past year with annual growth of about 20%, only recorded a 0.4% rise for the month. Prices are now at $584,500 for houses, and $447,000 for units.

Brisbane prices remained flat at $467,500 for houses and $372,000 for units, while Perth actually recorded a 0.7% fall to $486,000 for houses and $411,000 for units.

While Westpac economist Matthew Hassan says the growth is actually resilient, it indicates price growth is slowing overall.

"Nationally, house prices rose at a 15.5% annual pace over the second half of 2009 but have moderated to a 10.1% pace in the first half of 2010," he said in a statement. "More slowing seems likely in the second half as the sharp weakening in housing finance approvals works through to prices – auction clearance rates have already fallen notably in late June/early July."

This drop in auction clearance rates is particularly noticeable in Melbourne, where rates have dropped from 20 weeks in the high 80s to high 60s in about a month. However, Real Estate Institute of Australia president David Airey says these numbers are actually more normal behaviour for the market.

"These figures are actually quite normal for the industry, as rates in the high 80s are unusual. But all this means is that the reserve price at these auctions was more attractive to entice people to buy, it doesn't mean the market is bad."

This past weekend clearance rates actually recorded a slight increase, especially in Melbourne where rates moved to 72%. Airey says this is evidence sellers are reducing their prices to more realistic levels.

"I think there are a lot of sellers out there, and they are starting to reduce their prices because they think they'll be able to sell the house at that particular price. Certainly no one could accuse people of underquoting at the moment."

According to Real Estate Institute of Victoria chief executive Enzo Raimondo, Melbourne's auction clearance rate increased from 67% to 72% over the weekend.

"This weekend's result will be welcomed by vendors with homes listed for auction in the next few weeks as it shows that demand is still healthy and buyers still very active."

"This weekend last year featured substantially fewer auctions with 293 auctions held and a clearance rate of 85% recorded."

A total of 525 auctions were posted over the weekend, of which 379 were sold, and 146 were passed. Raimondo also said demand continued to remain high with 1,200 auctions set for the next few weeks, although this figure represents a decline from the past few months.

Clearance rates in Sydney reached 62% from 53% last week, with total sales at 141 with a total valuation of $102.9 million. Brisbane recorded a clearance rate of just 23%, with seven sales totalling $4.1 million, while Adelaide recorded 52%, with 14 sales totalling $5.8 million.

Hassan said in his statement these results are expected, as "the minutes to the RBA Board's June 1 meeting made a clear note of lower auction clearance rates as a sign of easing housing market conditions".

Airey agrees, although he says demand will continue to drop if the RBA raises rates at next month's meeting, which economists have said is likely given the upcoming inflation data.

"The new home industry is in quite a significant downturn, and the established home market is looking flat. If the RBA raises rates then I think we're in for it."

Credit: Patrick Stafford Smart Company

The Most Unaffordable Real Estate Markets

noreply@blogger.com (Millionplus.com.au) — Tue, 20 Jul 2010 00:03:00 +0000

Credit: Simon Turner from MarquetteTurner.com
In the latest Demographia International Housing Affordability Survey, there’s little surprise or change in the most unaffordable markets.

Once again, Australia is the most over-priced, and thus least affordable country in the study, with five of the top six cities surveyed also being Australian.

The survey, which covers 272 markets in Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States, is now in its 6th year, and determines affordability by the “Median Multiple”, which is quite simply the median house price divided by gross annual median household income.

LEAST UNAFFORDABLE
There were 61 severely unaffordable markets this year, down from 64 found in the previous survey. The least affordable markets were concentrated in Australia (22) the United Kingdom (19) and the United States (11).

As for cities, the top six are Vancouver being the least affordable, followed by Sydney, Sunshine Coast, Darwin, Gold Coast and Honolulu.

click the tables to enlarge

MOST AFFORDABLE
There were 103 affordable markets, 98 located in the United States and 5 located in Canada.

6th Annual Demographia International Housing Affordability Survey - read here

The results of this latest edition are very much in line with a recent and broader index compiled by The Economist which showed Australia to be in excess of 50 times over-priced/valued.

Credit: Simon Turner from MarquetteTurner.com

Under the Hammer starts on Seven next Monday

noreply@blogger.com (Millionplus.com.au) — Mon, 19 Jul 2010 23:56:00 +0000

Credit:Maverick Strategies

The secrets of the property market are unlocked in UNDER THE HAMMER, Channel Seven’s new documentary series that takes viewers beyond the front gate and into the wild world of real estate.

Agents open their backyards to reveal the methods they use getting clients top-dollar deals when properties go UNDER THE HAMMER. In the first episode, we meet three very different sellers:

Mark and Damien have set their sights on buying their dream high rise apartment at the Docklands in Melbourne – but first they must sell their South Melbourne timber cottage. Cheryle Street from JC Street Real Estate is handling both sales. Auction day is bright and sunny but as the bids are called for there’s deafening silence… and Mark and Damien can feel their dream slipping away.

Emma is reluctantly selling her home at St Peters in Sydney. After the end of a long term relationship, she’s not in a financial position to keep the property and it’s an emotionally difficult time – the only thing that can help ease her pain is auctioneer Damien Cooley getting her a fantastic price.

French-born John and Jislane have found love late in life and have one wish – to live out their years together. But to set them up financially they need to sell John’s modest home in Melbourne’s Noble Park. They’ve turned to the 25-year-old director of the local McDonald agency Michael Choi for guidance. As the auction gets underway John and Jislane can’t believe what they’re hearing.

UNDER THE HAMMER documents the tears and cheers from the high-pressure moments the anxious sellers go through watching buyers try to out-bid each other at auction. The passion is real and the result is never certain, but when you’re UNDER THE HAMMER you’re always under pressure.

UNDER THE HAMMER is a Seven Production – and premieres next Monday, July 26 at 8pm.

Credit:Maverick Strategies

Asian investor pays $40m for Kings Perth Hotel

noreply@blogger.com (Millionplus.com.au) — Thu, 15 Jul 2010 01:11:00 +0000

Credit:The Wall St Journal
AN Asian property investor has paid about $40 million for the Kings Perth Hotel in the central business district.

The transaction caps a wave of sales activity in Perth CBD, with more than $110m worth of property changing hands or in due diligence during the past couple of weeks.

The 119-room hotel, fronting Hay and Pier streets, was sold by Mirjam Norvilas, who has owned the property for about 20 years.

One source said the price tag was short of expectations.

The three-star hotel was previously offered for sale at a reported price of $70m in 2007, but was withdrawn.

The property, known as The Kings Complex, is made up of the Kings Hotel, West and East Office Towers, a ground-floor restaurant and two bars. It also features a multi-storey car park, with 374 bays.

Late last month, 32 St Georges Terrace was sold for about $30m, through selling agent Knight Frank.

A separate industry source said the buyer who acquired the building, known as the May Holman Centre, was an Indonesian property investor.

The vendor of the 13,000sq m office building is Westmain Corp.

Nearby, at the former Emu Brewery site, negotiations are continuing with a Malaysian property group for a price of about $40m.

The Spring Street site was reportedly owned previously by Turnstone Nominees -- a joint venture between Saville Australia and Babcock & Brown.

Turnstone fell into receivership in early 2008.

In addition, negotiations are continuing for the $130m sale of Dynons Plaza.

Sources said the buyer circling the 14-storey building was German fund Real IS.

The Dynons transaction would be the biggest sale in Perth so far this year.

Dynons Plaza is owned by Singapore-listed Stamford Land Corporation, formerly Hai Sun Hup Group. It is Australasia's largest independent owner and operator of luxury hotels and was founded by CK Ow.

Dynons is located on Hay Street and is fully leased for 10 years from April to major oil and gas group Chevron Australia.

The annual net income of the building is about $9.78m, with a rent review structure that provides for annual fixed increases.

The site was earmarked for a luxury hotel but Stamford opted to build a premium office tower instead.

Credit:The Wall St Journal

Average home value growth cools in May

noreply@blogger.com (Millionplus.com.au) — Sun, 11 Jul 2010 23:59:00 +0000

Credit:News.com.au

THE Australian housing market continued to cool in May, after house prices in capital cities recorded their second straight month of single digit growth in May.

The RP data-Rismark Hedonic Home Value Index grew by a seasonally adjusted 0.5 per cent in May, up a touch from the 0.2 per cent recorded in April.

April's near flat result followed 16 months of strong house price growth.

In the year to May, house prices in capital cities grew by 12.1 per cent.

"This second consecutive month of single-digit annualised gains sends a signal that the double-digit growth rates recorded since January 2009 are behind us," RP Data's director of research Tim Lawless said.

"The signposts have been in the market for several months now with lower auction clearance rates, fewer housing finance commitments and weakening consumer confidence."

On a city by city basis, home values rose 2.4 per cent in Sydney, while 3.3 per cent per cent growth was recorded in Melbourne.

Home values in Canberra grew 3.7 per cent, while in Brisbane they grew 0.8 per cent and values were up 2.3 per cent in Adelaide.

Home prices fell 2.1 per cent in Perth and one per cent in Hobart.

Credit:News.com.au

Canberra buyers freeze and camp out for land in hot property market

noreply@blogger.com (Millionplus.com.au) — Mon, 05 Jul 2010 01:11:00 +0000

Credit:News.com.au
ACT buyers camp out to buy land
Canberra records biggest price rise
Prices slow across other capitals

CANBERRA has overtaken Melbourne as the country's hottest housing market.

The ACT's government resorted to a "virtual" ballot after buyers camped out for a week in freezing temperatures to secure blocks of land.

Canberra's residential prices rose 3.7 per cent, to a median value of $508,500, in the three months to the end of May - the biggest rise of all capital cities, according to figures released by researcher RP Data-Rismark.

Prices in Melbourne, previously the star performer, increased 3.3 per cent to $480,000, while Sydney remained the most expensive market, with a median price of $517,250, a 2.4 per cent increase in three months.

In most cities, house price growth has flattened as higher interest rates bite.

In Canberra's Forde, a new suburb 14km north of the city, hopeful buyers spent up to a week queuing and camping.

Developers eventually allocated numbers to potential buyers and sent them home.

Matt and Corrina Lynch and their two-year-old twin daughters, Eva and Jordan, avoided the queues, moving into a former display home in Forde last October.

Mr Lynch, 35, a governance manager for law enforcement information agency CrimTrac, and Corrina, 31, a photographer, bought the four-bedroom display home because it was immediately available after their move from Woollongong, south of Sydney.

"There were campervans, people in caravans and tents - it was quite a sight," Mr Lynch said of the buyers queuing a week ago to get a toehold in the Canberra market.

Real estate agent Century 21 Canberra principal Brian Nancarrow likened the Canberra housing market to that of Melbourne a year ago: "It's certainly a boom. It's not a bubble and it will flatten out."

Prices for one-bedroom apartments had risen from $315,000 to $420,000 in the past year, driven by investors and the increasing international student market, Mr Nancarrow said.

The acting chief executive for the ACT Department of Land and Property Services, David Dawes, said the department wouldn't again sanction the "first in, best dressed" method, which had resulted in buyers camping out.

"We don't want people doing that," Mr Dawes said.

"It may be more common in Sydney and Queensland, but we don't do it that way in Canberra." .

Meanwhile, auction clearance rates in the major markets continued their steady decline over the weekend. In Sydney, just 58.5 per cent of listed properties were sold - down six percentage points on the same time last year.

In Melbourne, the auction clearance rate was 55.4 per cent, down 25.7 percentage points on the same weekend last year.

Competition gets tougher for prestige real estate agents

noreply@blogger.com (Millionplus.com.au) — Mon, 05 Jul 2010 01:06:00 +0000

Credit: The Courier-Mail

WITH the battle to get deals over the line in the luxury property market becoming even tougher, so too is competition by Brisbane agents to snare the elusive listings.

A handful of Brisbane agents handle the prestige side of the market - Judy Goodger, Mikki Finlay, Jason Adcock, Josephine Johnston-Rowell and Gail Havig are a few of the names that pop up time and again.

So personality driven has become the business of selling high-end property that many clients would be hard-pressed to name the agency they work for.

The number of wealthy Brisbane residents who can afford to spend well over $1 million on a family home has increased substantially in recent years, and with that comes the expectation of a high level of personal service.

If you type "prestige agent Paddington" into one internet search engine, Judy Goodger's name is the first entry to pop up.

But while some might hope that giving up her Paddington office to make her recent switch from Ray White to Place will open up opportunities for others to gain a foothold in that suburb, she's not about to give up that side of town.

According to Goodger, unlike agencies handling smaller value transactions, which tend to focus on properties in a particular catchment, prestige agents operate across the whole of Brisbane.

While she says there is keen competition to get your name known, prestige agents are often contacted through word of mouth.

Place tried for six years to lure Goodger across before finally getting her to come on board as part-owner and agent.

Mikki Finlay, of Ray White Premium Residential, realised the benefit of branding herself when she started her business in Brisbane in 2003. She says there is a "competitive spirit" among prestige agents but agrees they are often contacted on their name alone.

Finlay says the luxury market has certainly slowed since this time last year, so agents have had to work hard to get their names out there to attract vendors.

"I think we have seen it is a buyers' market at the moment," she says. "Our open home attendances are down by 30 to 40 per cent on last year."

Finlay markets herself through huge billboards on prominent thoroughfares such as Kingsford Smith Drive - and she is not alone. Andrew Degn, of Place, has had a massive billboard at the Normanby Five-Ways and Judy Latham has one at Mitchelton.

Josephine Johnston-Rowell feels uncomfortable with that level of putting herself out there, but agrees that a certain level of personal marketing is needed for those all-important listings.

She says people with luxury properties will seek out a particular agent, for whatever reason, while at a lower price point, sellers do more shopping around and ask more questions about commissions and costs.

Credit: The Courier-Mail

Keys to the kingdom lost

noreply@blogger.com (Millionplus.com.au) — Mon, 28 Jun 2010 00:30:00 +0000

Credit: SMH.com.au

The tightening of restrictions on foreign investment in Australian real estate has not only dampened buyer interest, but also left agents confused and wary.

TALK to any of the estate agents working in Toorak, Camberwell, Kew and Hawthorn and they will tell you that overseas interest in suburban Australian property has declined.

No doubt there are many reasons for this, but the one that most say has had the greatest impact is the announcement by federal Assistant Treasurer Nick Sherry on April 24 that temporary residents are now required to seek Foreign Investment Review Board approval to acquire residential real estate in Australia.

The announcement also foreshadowed tough new civil penalties for non-compliance, including sanctions for vendors, purchasers, and agents involved in breaches of the act. As a result, it is not only prospective overseas purchasers who have had to review their position. Estate agents are also concerned about the prospect of sanctions in the event that they are accused of breaching the new laws. Until the detail of the proposed new regulations is disclosed, those concerns will continue unabated.

At the time of Senator Sherry's announcement, many complained that the decision to restrict foreign investment in Australian real estate was a hasty response to growing public sentiment against what was perceived to be a flood of overseas purchasers. The fact that it took several weeks following the announcement for the new policy to be published on the review board's website, and that details of the proposed sanctions are yet to be disclosed, would add some credibility to this view.

The recent changes revive the situation that prevailed until late 2008 when many of the restrictions on the right of foreign investment in Australian real estate were relaxed.

The most significant of these changes gave temporary residents the right to buy established dwellings for use as a principal place of residence without seeking board approval. As a result of the April changes, they must now first seek this approval. If applicants are eligible for approval under the new policy, the acquisition will be approved subject to legally binding conditions that will differ according to the type of real estate being bought.

Certain acquisitions continue not to require board approval, including the purchase of property by Australian citizens living abroad, and the purchase of new dwellings from a developer, where the developer has board pre-approval to sell those dwellings to non-residents.

The changes have produced inconsistent results. For example, a non-resident or an Australian permanent resident married to an Australian citizen acquires an interest in property when they purchase as joint tenants. However, the non-resident spouse of an Australian permanent resident acquires no interest even if the purchase is proposed to be as joint tenants.

The restriction on the right of a non-resident spouse to acquire an interest in property seems to fly in the face of family law principles, which, in the absence of any contrary agreement by the parties to the marriage, would ordinarily recognise a spouse's interest in property in the event of the breakdown of the relationship.

Curiously, the review board exempts from approval the acquisition of an interest by operation of law - such as a court order regarding the division of property in a divorce settlement. Therefore a non-resident who separates from her permanent resident spouse and takes proceedings in the Family Court stands in a stronger position than one who remains married. There does not seem to be any logic to this approach and were it to be challenged there would be good grounds for believing that it could not be sustained.

As stated earlier, the holders of a temporary residence visa may acquire established dwellings for use as their principal place of residence, subject to board approval.

Care needs to be taken in determining whether the visa a person holds grants temporary residence. Herein lies the problem for estate agents and is one reason they are worried about the prospect of sanctions. First, the board policy contains a very brief and unclear definition of the term. Most agents know that student visas and what are known as 457 visas are temporary residence visas, but in a regime that has more than 130 different visas, it may be difficult to know which ones grant residence and which do not. For example, not all people on a 457 visa fall within the definition as some of these visas are issued for periods of stay of less than 12 months, which is the trigger date contained within the definition. Agents are quite rightly concerned that these are not issues that they are trained to deal with, or may not be qualified to give advice on.

The problem is further compounded with many visas, including the 457 temporary residence visa for holders of passports from designated countries, being issued electronically. No amount of looking at a passport will give any insight as to the class of visa that the holder has, or the rights that attach to it.

With these issues in mind, agents are justifiably concerned at the prospect of being caught up in enforcement proceedings no matter what due diligence they employ. For this reason, many are no longer pursuing the lucrative overseas market at least until the new regulations are published and there is more clarity about their obligations.

David Stratton is an immigration law specialist at Nevett Ford.

Credit: SMH.com.au

The World's Most Expensive Homes for 2010

noreply@blogger.com (Millionplus.com.au) — Fri, 25 Jun 2010 01:25:00 +0000

Credit: Overseas Property Mall

1. “Antilla”, Mumbai – $1billion

The world’s most expensive home in 2010 is unquestionable. It is the first $1 billion home the world has seen. A custom-build 27 story towering mansion, Antilla in Mumbai is the home of the world’s fifth richest man, namely Mukesh Ambani, head of Indian petro-chemical giant Reliance Industries, which is India’s most valuable firm by market capitalization.

With double height ceilings, ballrooms, crystal chandelier ceilings, retractable stages, and 600 servants, there is no other home on earth that compares to the 570 feet tall Antilla.

2. Villa Leopolda, French Riviera – $506 million

Villa Leopolda is an 80,000 square foot Chateuau built in 1902 by King Leopold II of Belgium. The villa has been rumoured to be the home of Bill Gates and many more global figures, but has actually been home to French banker Edmond Safira, whose wife Lily still lives there. The 19 bedroom villa, which boasts sports courts, a bowling alley, multiple kitchens, dining rooms and a movie theatre, received even more press lately when a Russian mogul lost his deposit on the property when he reneged on completing the sale.

3. One Hyde Park – The Penthouse, London – $200 million

This massively stylish modern penthouse may not be so expensive did it not sit atop the famous number 1 Hyde Park address. As it is in such a premium location it has been built as a home for the rich and famous complete with SAS guard, bullet proof windows, iris scanners, panic rooms and a secret tunnel to the nearby Mandarin Hotel. The building has communal spas, squash courts and wine tasting rooms, and the penthouse is served by 24 hour room service.

4. Fairfield Pond, The Hamptons – $170 million

This 63 acre home is considered the largest residential compound in America. The 29 bedroom beachfront home of publicity shy billionaire Ira Rennert has 5 sports courts, a bowling alley and a $150,000 hot tub.

5. Hearst Mansion, Beverly Hills – $165 million

This mansion — the former home of publishing giant William Randolph Hearst, the inspiration for the main character in “Citizen Kane” –, features 29 bedrooms and three pools. The estate became a pop-culture icon after being used in The Godfather movie, when the infamous severed horse’s head turned up in the owner’s bed. The fact that assassinated President John F Kennedy stayed in the mansion during his honeymoon also added to its status. The house has some notable neighbours, including Tom Cruise and Katie Holmes and David and Victoria Beckham

6. Franchuk Villa, Kensington – $161million

Anyone else spotting a trend here (the most expensive homes being mainly in the UK and US, this making it 2 all). This Victorian Villa was a girl’s prep school until 1997, when it was bought and upgraded in 2006. After receiving a £10 million overhaul and refurb it was purchased by Ukrainian AIDS philanthropist, Elena Franchuk, and renamed the Franchuk Villa.

7. “The Pinnacle”, Montana – $155million

This is the home of Time and Edra Blixseth, owners of the billionaires-only golf and ski resort “Yellowstone Club” in Montana. It will be the largest and grandest property on the resort, but is still small in comparison to some of those on this list, with only 10 bedrooms. To catch up the property has impressive features such as every inch of floor being heated, a heated driveway and fireplaces in all bathrooms. (3-2 to America).

8. “The Manor”, Los Angeles – $150 million

The home of Aaron Spelling, dubbed “The Manor” by wife Cindy, has 123 rooms for his family to choose from, an indoor skating rink, multiple pools, three kitchens, sports courts, private orchard, and a bowling alley. The home, which he had built from scratch in 1991 also has a room used exclusively for wrapping presents and an entire floor dedicated to closet space.

9. Updown Court, Windlesham, Surrey – $139million

The description of this home is above, as it was the 3rd most expensive home in 2008. What is interesting however, is that in 2008 it was valued at $110million, meaning its value has grown substantially even during such difficult financial times.

10. Dracula’s Castle, Romania – $135million

This home needs no introduction. Built in the 14th century, the castle is now a national monument and museum thanks to the legend surrounding it, which also needs no introduction. It has 57 rooms in total, including 17 bedrooms filled with antiques and historical artefacts. It wouldn’t do for the publicly shy Ira Rennert mentioned above, but for the quirkier billionaire, the 450 million tourists that visit every year may be worth it for living in Dracula’s castle.

Money for nothing – and some tips for free

noreply@blogger.com (Millionplus.com.au) — Wed, 23 Jun 2010 02:07:00 +0000

Credit: NewsMaker

What simple measures can a homeowner take to ensure they not only get everything their home is worth at sale time, but a whole lot more? In Sold For Top Dollar, mother and daughter home stagers and now authors Charyn and Kate Youngson explain exactly how it’s done. They are even happy to provide five tips ahead of the book’s official launch...

1. Declutter - Unclutter and rearrange your furnishings to open up the look of your home.

2. Depersonalise – Get rid of your crazy teapot collection and religious icons. You’re selling your space, not your personal stuff.

3. Repair – Detail your home like you would detail your car. Take care to upgrade and repair your home so that any potential buyer doesn’t see fault and problem areas.

4. Neutralise – Try to make your home a blank canvas. Get rid of loud feature walls and brightly coloured window treatments. The buyer does not want to repaint before they move in.

5. Clean – Imagine your home is a 5-star hotel and clean it to that standard. Nothing turns a potential buyer off quicker than dirt, dust and cobwebs. It gives the impression of a neglected home that hasn’t been cared for.

Really, there should be a Tip 6 – buy Sold For Top Dollar. It provides a lot more advice on how to generate money from your house sale, build equity and, for those who want to get a bit more serious about investing, how to renovate an investment property for profit.

As a single mum who went from unemployment to flourishing business owner, Charyn Youngson has some great stories to tell. When daughter Kate came on board and the business started booming, it seemed the obvious time for the two women to release Sold For Top Dollar, a book that lifts the lid on undervalued properties and quick, cheap real estate sales.

Sold For Top Dollar is a refreshing change from many of the how-to books on today’s market because it actually tells readers, in plain English, how they can increase the value of their homes. Sure, readers could achieve even greater value increases by using Charyn and Kate’s professional Houses To Impress service but following the book’s advice should certainly pay dividends.

The book pays for itself many times over within a chapter as Charyn and Kate explain the moneymaking advantages of home staging for sale and the value-adding advantages of renovation. Sold For Top Dollar will have its national launch at the SA Writers Centre, Rundle Street, Adelaide, on Wednesday, April 28, after which Charyn will start a national speaking tour.

For further information, phone Charyn or Kate Youngson at Houses To Impress on 08 8395 1144 or Shane McNally at Soapbox Media on 0412 956 615.

About Houses To Impress

Australia's leading home staging company. Run by mother and daughter team Charyn and Kate Youngson, Houses To Impress has developed a huge reputation for the ability to add thousands of dollars to homes and ensure they are sold for a premium price.