How many times do you see ‘location, location, location’ or ‘million dollar views’ when reading real estate ads? Just some of many clichés that you may stumble upon in real estate. Sure, many of these sayings do not carry much weight. However, there are several that have quite a bit of truth behind them, including these four:

1) Location, location, location

This one has been circulating property ads for as long as we can remember, and for good reason: location is one of the most critical parts of choosing an investment and one of the most important factors on the list of buying a home.

As the good old saying goes, when investing in property, ‘location is everything’. And many argue that you simply cannot find a better location than right in the centre of the city.  It is not hard to see why given that everything is within close proximity to the property – including shopping, education facilities, employment hubs, public transport, restaurants and bars, etc. 

Even within the city, the choice of location matters and in Brisbane there are several areas that truly stand out on the map, such as those apartments that offer views of the stunning cityscape, twinkling night lights or the beautiful meandering Brisbane River. Take your pick.

2) Worst house on the best street

When it comes to purchasing property this cliché actually holds some merit – especially for buyers or investors who are on a budget. After all, you can change a dwelling, but you can’t change its location.

Therefore, many would suggest that is wise to buy an apartment in the centre of the Brisbane CBD (i.e. the best street) that can be renovated, as opposed to buying a newer, off the plan apartment a few suburbs outside of the CBD.

You will always have the option to update the apartment later but you will never be able to more the block close to the city. It makes perfect sense.

3) The value is in the land not the dwelling

When it comes to real estate, often you will hear people talk about the fact that the land is worth a lot more than the actual property itself. In many circumstances this rings true.

The reason for this is because as a home or property ages, the quality reduces and therefore it loses value. Land on the other hand cannot be created and is limited supply, hence that is where the real investment lies.

When talking rare land, they do not come much rarer than in the CBD. After all, suburban sprawl has an ability to expand as population increases. The CBD does not. For that very reason alone, the central block of land (called the Brisbane CBD) is more unique than its suburban counterparts.

Furthermore, the value of CBD land is expected to continuously grow every decade as population increases and new infrastructure is injected into the city.

4) Million-dollar views

How many times have you heard this one? But it is true! There are a lot of buyers that are happy to part with a large sum of money just to find that perfect ‘million-dollar’ view. And there are no shortage of these here in Brisbane – including spectacular city views as well as those of the sparkling Brisbane River.

Principal of HS Brisbane Property, Hannah Schuhmann, says Brisbane is spoilt for choice when it comes to offering some ofthe best views CBD life has to offer.

“We have some buyers who purchase apartments solely for the views… buyers have purchased property, solely for the fact that it offers the best view of Riverfire”, says Hannah Schuhmann.

Apartments with million-dollar views or in the best CBD locations… we have them all. To find out what hidden realty gem you can uncover in the Brisbane CBD, contact Hannah on 0419 782 133.

 6.     A NAME CHANGER

 New laws stipulate that the executive committee will now be called the strata committee.

 The ins and outs

 This new change in name which sees the word ‘executive’ removed from the title is expected to bring a few of the committee members back down to earth. Capital Works Fund will also replace Sinking Fund – more professional and less confronting, we think it is a change for the better.

 7.     NOT SO CROWDED

Owners corporations can now set limits on the number of people allowed to live in an apartment, provided the upper limit is no less than two adults for each bedroom.

 The ins and outs

The “no less than” limit is actually a benchmark that owners corporations can use to prevent overcrowding and multi-occupancy. Fines for breaches have been pumped up to $11,000 for a first offence and $22,000 for subsequent offences. Supporting legislation that will allow council inspections based on circumstantial evidence, such as numbers seen arriving and leaving, is apparently in the pipeline.

 8.     HIGH FIVE TO LIMITED PROXY VOTES

Proxy votes will be limited to five per cent for each holder.

 
The ins and outs

This new rule is designed to limit control of the committee. How and why? Typically committee chair-people and secretaries have easy access to owners; this makes it very easy for them to manipulate information, and votes. In some circumstances, chair-people have over 50 per cent of the vote tied up, making it very easy for them to remain in power and run the buildings - and often they do just that. Consequently, the same members make sure they stay in power and vacancies on their committees are filled by their mates and buddies. However, this old ‘anti-democratic’ way, only supress ideas and starve committees of new blood. It is far from productive or effective. Not anymore. Thankfully this new law recognises this and will create a fairer committee. A change that is well and truly overdue.

 9.     LOW LEVIES PAYBACK

Should a developer promise unfair low levies at time of sale, the owners corporation are now able to get compensation.

The ins and outs

In the past unscrupulous developers have been known to promise naive buyers into luxury facilities at low or no cost. All the while the owners not realising that in fact they actually have to pay bills for those services! But, by then it is far too late and the developer is well and truly out of the picture. Well, not anymore. This new rule is designed to eradicate this issue. Now, owners can pursue the developers for compensation through the tribunal (NCAT).

 10.  NEW MEANS TO VOTE

With approval, the committee can now agree to allow other means of voting.

 The ins and outs

Prior to this new rule, voting was made in person or by proxy. This new change brings them up to speed by allowing electronic votes via Skype calls, email and even good old-fashioned snail mail.

 While these are only a small portion of the bigger picture that includes dozens of new changes, these new laws are certainly a step in the right direction. From online votes to compensating owners for low levies, these changes will certainly help bring strata investments up to speed with the rest of the real estate world.

 But these new strata rules are just one piece of the puzzle when it comes to understanding what is involved with owning or investing a CBD apartment. Thankfully, the team at HSBP understand the Brisbane CBD like the back of their hand! From strata regulations to the best areas to invest, contact Hannah and the team on 0419 782 133 - the experts in Brisbane CBD property.

Find out if these changes apply to your property in your location - speak to your Strata Manager today.

 Interested in reading last weeks ‘Part 1’ article? Visit:  http://www.hsbrisbaneproperty.com.au/blog/index.php?option=com_content&view=article&id=224:hs-brisbane-property

Cracking down on parking, new contractual laws, committee bans and much, much more… did you know there are close to 100 new strata laws that have just been passed in New South Wales and are apparently being considered to potentially introduce into Queensland too? Let’s take a look at what the world will be like if these changes are introduced: 

1.     PARKING NO LONGER A FINE LINE

Owners corporations will now have the ability to reach agreements with local councils in order to let parking officers into their schemes to issue fines to rogue parkers.

The ins and outs

Welcome to one of the biggest topics of debate when it comes to strata – parking! Under the new scheme, owners corps will be able to make their own arrangements with council parking wardens to patrol their car parks. Prior to this new rule, it was very difficult to police inconsiderate and opportunist drivers who parked their vehicles in private zoning so it is two massive thumbs up for this new change. The downside… residents are not immune. Meaning, they too can receive a ticket for leaving their car parked over parking lines and onto common property or in visitor parking (even if just for a few minutes).

2.     COMMITTEE VETO

Building managers, strata managers, caretakers and rental agents will no longer be allowed to serve on strata committees in which they operate - unless they are also owners.

The ins and outs

Previously it has been way too easy for those with a vested interest to take charge of a strata committee and consequently run the building to suit their businesses. How? A combination of proxy votes and privileged access to resident owners as well as the addresses of absentee investors. Thanks to the new rule, this will be a thing of the past.

3.     LIMITED STRATA CONTRACTS

During the first year of a building’s life, strata manager contracts are set to be limited to one year - and three years thereafter.

The ins and outs

All contracts set up by developers of new schemes have to be approved by the owners at the first Annual General Meeting (AGM). The newly revised contract of initially one-year gives strata managers plenty of time to prove themselves to the committee. If the relationship isn’t working out, it is now much easier for owners corps to change strata managers, thanks to the subsequent three-year contracts.

4.     DIY HAS HIT THE NAIL ON THE HEAD

Cosmetic changes will now be allowed and minor alterations will only require committee approval.

The ins and outs

This new rule has been a long time coming for many DIY enthusiasts. After all, strict interpretation of the current strata laws could see you breached for hammering a nail into a common property wall. Thanks to the new rules, it means that simple cosmetic changes, such as hanging hooks or pictures, and filling cracks in the walls can go ahead. Meanwhile minor alterations, including kitchen or bathroom renovations, installing timber or tile floors and replacing wiring or power points no longer need a special resolution by-law. However, this does not mean you can to get too hammer-happy as there are still laws in place that allow owners corps to charge owners for damage caused to common property as a result of their work.

5.     ALL IS FINE

Fines for breaching by-laws are now set to be paid to the owners corporation, as opposed to state revenue, which was previously the case.

The ins and outs

In the past there has been no incentive for strata committees and owners to pursue a breach in by-laws. Typically following up a violation came at the cost of their own time and money – all fines that would have offset the cost just disappear into state revenue. One might ask, what is the point in that? Now, thanks to the new law, this is no longer the case. In the future, fines will go mostly to the owners corp. And everything still has to go through the same tribunal process as well, which eradicates any concern that some over-zealous committees may find this an opportunity to cash in.  

Find out if these changes apply to your property in your location - speak to your Strata Manager today.

There you have it; five of the new strata laws. Stay tuned for another five next week. In the meantime, if you have any questions about investing in the CBD (strata or not) please call Hannah from HS Brisbane Property on 0419 782 133.

As the saying goes, knowledge is power.

One of the best weapons you can have on a battlefield is knowing your stuff and making sure you are up to date with the latest industry information. The same theory could be applied to property investment. The same theory could be applied to property investment.

Knowing and understanding the economy can help you to anticipate what way the property industry will shift next. Thus, ultimately giving you more control over your dollar, and your investment. It can be the difference between losing money or making millions.

So long as it comes from a respected source, all knowledge is valuable. In fact, being resourceful is considered an investment in itself so it certainly pays for investors to remain up-to-date with the latest information, data and reports on topics, such as interest rates, the Australian Dollar and the Australian economy in general.

To help keep you on your toes, we have decided to bring you some of the key findings from the St George’s Quarterly Economic Outlook. Here are 10 of the key highlights to come from the report which will hopefully help shed some light on what is instore in 2016 and beyond.

10 Economic Highlights for 2016

1.  Australian economy is set to grow modestly in 2016 and reach 25 consecutive years without a recession.
2.  Low interest rates and a lower AUD are expected to help counteract weaker capital spending in the mining sector.
3.  Labour market indicators remain firm and business sentiment is mildly positive.
4.  Demand for credit is edging higher and export volumes are set to increase.
5.  RBA is expected to leave its cash rate on hold throughout 2016.
6.  Further rate cuts appear unwarranted this year, while a rate hike can wait until 2017.
7.  Australian bond and swap yields are expected to edge higher in 2016 as the US gradually lifts its Fed funds rate.
8.  Ongoing low inflation, modest global growth and quantitative easing in Europe and China should limit the increases in yields.
9.  We expect the AUD to mostly trade near 70 US cents over the first half of 2016, notwithstanding some volatility while financial markets  remain on edge.
10.  Our end of 2016 forecast is 74 US cents, reflecting growing signs of a pickup in domestic growth towards the later part of the year.  

With modest growth and low inflation on the horizon, as well as a steady cash rate throughout the year, it seems like there is a lot to be happy about when it comes to the Australian economy in 2016 – with the St George report reiterating this.

As confidence in the economy grows, we expect the property market will follow in its footsteps. So hold on tight and get ready for an exciting year ahead full of new and fruitful prospects. Take the time now to build your network, do your homework and surround yourself with sound professionals (like the HSBP team) who can help you along the way – in other words build your knowledge base and conquer the world.

To help you along the way, contact Hannah on 0419 782 133 and find out how HS Brisbane Property can help you make the most of every opportunity that lies ahead.

It is no surprise that property price growth is one of the main benefactors that drive investors towards purchasing property in a certain area, suburb or city – or even country for that matter. But, what triggers price growth? Two of the biggest contributors are population growth and infrastructure. Fortunately, future industry projections indicate that both are well and truly on the cards for our Australian capital cities over the coming years – especially Brisbane.

 First, let us take a quick glance at population growth. In the short term (from now until June 2019) when we look at the latest figures from the Department of Immigration and Border Protection (DIBP) in the table below, it is very evident that a vast majority of population growth over the next few years will be made up of students and those with a temporary working visa. You do not have to be a rocket scientist to know where the majority of these two demographics reside – yes, the CBD – where they have access to universities and colleges, as well as work. So that is one immediate tick for Brisbane right there.

While the above shows a steady growth for now, it does not really indicate how an investment property will fair over the long-term. So now we need to turn to the 2015 Intergeneration Report which takes us all the way to the year 2101.

Looking at the figures, above and below, it is clear that state governments are planning for capital cities to continue taking on a continually greater share of the state's population, particularly in the most populous states, such as Brisbane.

In keeping with these projections, by 2031 Australia’s capital cities will be home to 6.4 million extra people (around 43.4 per cent more than 2011). The growth to 2061 (15.7 million persons) is around 1 million persons more than the current combined population of all of Australia’s capital cities.

Or looked at graphically.

Note in particular the enormous projected growth in Brisbane. Again, one more big tick for Brisbane, and our CBD investors.

These are telling numbers indeed. Using this information, as we go forward it is expected that a greater share of the actual population growth must correspondingly take place in the capital cities, as confirmed by the projections.  

As mentioned above, another contributing factor to a growing population is infrastructure. This is clearly on the cards for Brisbane thanks to the Queen’s Wharf, which is just one of many current developments that spring to mind.

With a strong vision for the future, the Brisbane City Council and Queensland Government’s long-term commitment to invest in critical infrastructure (such as the Queen’s Wharf) continues to transform the city and the state, with the ongoing delivery of new road, tunnel and rail links to support the competitiveness of industry and business. Queensland's average infrastructure spend from 2000 to 2010 was 75% higher than the average of other states and territories combined at $1021 per capita (Source: Queensland Infrastructure Plan, 2011). 

So there you have it, as Brisbane’s population and infrastructure continues to grow, in the short-and long-term, so too will property prices. Meaning now is a very exciting time for investors to start building or expanding their property portfolio here in the Brisbane CBD. To discuss current or future opportunities, contact Hannah on 0419 782 133.