It is hard to fathom we are already one eighth of the way through 2015.  At the start of the year we covered a few market predictions for the year so today we have decided to delve a little further and take more of a look at what Brisbane can expect for the next ten months.
 
To help us paint a clear picture, here is a review of five fundamentals that are expected to come into play:
 
1.     All eyes on Brisbane
Over the past 10 years, the Brisbane market has recorded a slower price increase than other Australian capitals such as Sydney, which some experts are reporting has grown ’too much, too fast’ and could now see many priced out of the market.  While this is not so great news for New South Wales, Brisbane investors are likely to benefit as we see more of a focus placed on Brisbane and as switched on purchasers turn to our city for well priced investment opportunities with a forecasted market increase for the coming year.
 
2.     Brisbane’s affordability is the best it has been since 2003
One of the biggest factors contributing to Brisbane’s expected price growth is its massive affordability. Over the last six years (2008 to 2014) the percentage of mortgage repayments on a median priced property in Brisbane, as a proportion of monthly disposable income, is significantly less (17 – 27 per cent) than other states around Australia. Comparatively Perth is showing at 19 – 34 per cent, Melbourne fluctuates between 23 – 42 per cent and Sydney is consistently the highest at 32 - 52 per cent. Thus, with affordability on our side, it’s no wonder buyers and investors are starting to notice the huge financial potential that the Brisbane CBD offers.
 
3.     Rental yields for Brisbane CBD units are attractive and vacancy rates low
Good news investors! When it comes to Brisbane’s CBD rental units, Brisbane has boasted an average low vacancy rate of 2 – 2.5 per cent since 2011 – leading the way when compared to Australia’s other major capital cities. Furthermore, Brisbane’s gross rental yields are also significantly higher than fellow Eastern states, thus making Brisbane an attractive option for those buyers looking to invest.
 
4.     Sales volumes and borrowing is up
Recent activity shows that the Brisbane CBD is witnessing an ongoing increase in the number of property sales. Additionally, finance for owner-occupier property has been on the rise since 2011.
 
5.     New developments no competition for existing complexes
Brisbane is expected to see a lot of new building projects going up in the city fringe during 2015,  whilst CBD developments are limited to a few up market projects.  This tells us while the areas around the city are worrying experts with the whispers over ‘over supply’ - the CBD will remain in a much better position going forward.

“The established buildings in the city offer a great investment and are hard to beat in terms of value and return.  The small amount of new developments coming up in the city over the next few years are essentially a completely different type of product, they are directed at the luxury market with higher pricing, so they are going to be attractive to a select market and not detract from the existing complexes – which is good news for investors as this short supply should lead to increased prices and continuous, solid returns” said Hannah Schuhmann, Principal of HS Brisbane Property.

“New inner city developments simply don’t present the same selling features as existing CBD buildings. For example, units in those new developments are often smaller and some don’t have balconies (a sought-after feature in the CBD), they come with a higher competition in regards to resale and renting, and the existing complexes are generally better positioned and with many boasting outstanding views of the river and across the city” she said.

To ensure you’re on the front foot and make the most of Brisbane’s forecast upturn, contact Hannah on 0419 782 133 and schedule an appointment now.

Earlier this week on Tuesday 3rd February the Reserve Bank of Australia (RBA) decided to lower the cash rate by a further 25 basis points to 2.25 per cent, taking interest rates to the lowest we have seen in forty years. Prior to this, speculation for the real estate market in 2015 has fast become the hot topic of conversation for many Australian economists and property experts, and this latest cut proved no exception.  

Prior to the RBA’s recent interest rate cut, economist, Steven Keen, says he envisaged Australia’s so-called property bubble continuing throughout 2015. A bold statement, which prompted a response from property depreciation expert, Tyron Hyde, who claims he doesn’t agree with Keen.

Also on the 3rd of February, Hyde made a Guest Observation on the Property Observer website clearly stating, “I’m glad I didn’t listen to you Mr Steven Keen.”  Hyde then went on to remind everyone of Professor Steven Keen’s vision to “sell up” back in 2008 - because the property market was overpriced.

“Do you remember when Professor Steven Keen, (the economist, author and renowned pessimist when it comes to property), was selling his house because he thought the property market was overpriced? I do. The year was 2008.

“I remember seeing him on TV (A Current Affair or Today Tonight) doing a walk-through of his apartment and explaining to the reporter how overpriced the market is and it’s time to sell,” recalls Hyde.

Hannah Schuhmann, Principcal of HS Brisbane Property says she agrees with Hyde on this one.

“This is an interesting observation from Hyde because since 2008 to 2014 (alone) property prices were up by 14 per cent, an indication that Keen’s earlier 2008 'the Australian market is overpriced’ statement was, and still remains, untrue” said Schuhmann.

Hannah further believes that the property market in Brisbane is only getting stronger and stronger and this is evident in the increased enquiries and the buoyant sales prices we are continuing to see in our city.

“With the continuing activity and this weeks’ cut to interest rates, there is renewed confidence in the market and this is absolutely set to see an increase in purchasers coming into the buying process.  Low rates mean more affordability and we are likely to see a scramble for great inner city units as astute investors make the most of these conditions and look to buy!  This is of course music to the ears for those thinking of selling also!” said Hannah.

For more information on what this means for you, contact Hannah today for an informal discussion on 0419 782 133.

Whether you’re selling your first unit or buying your ninth CBD investment property, buying and selling property is a big deal and the process often comes with lots to think about. To help you, based on our experience, we have put together (what we consider) five of the tough questions, which you should always ask your real estate agent before you go ahead and sell your property.
 
1. Based on your other unit sales in the CBD, what do believe ours is worth?
This question is important for two reasons; the obvious one being that it will give you an idea as to how much your unit is worth and secondly this question helps gauge how active your agent is in your immediate area – this case the CBD. With local experience comes a realistic price. What does that mean? It means that when a real estate agent knows the local area well, like the Brissie CBD for example, they are familiar with market conditions and local supply and demand. Thus, based on all of these factors, they will also be able to provide you with a more realistic price for your property.
 
TIP: Look for confidence. If an agent can confidently answer this question then chances are they have good local knowledge and experience in the area.         
 
2. How would you sell and market our inner-city unit to get the best price?
Each real estate agent is different and will offer mixed advice on various sales techniques (auction or private treaty, etc.) and marketing channels. Asking this question allows you to find out what each agent suggests in order to get you the best results… and of course, price!
 
TIP: Have each agent explain the advantages and disadvantages for their methods so you are able to make an informed decision and sell your unit based on all the pros and cons.

3. How can we get the best price for our unit?
This one’s the million-dollar question. Let’s face it, when it comes to selling your unit nothing is more important than price, after all, it’s all about the bottom dollar. In all honesty, the trick to making more money is all in the presentation. From our years of experience here at HS Brisbane Property, we’ve found that well-presented units often sell more quickly and for a higher price.
 
A quality agent will present several ways in which you can add value to your unit without spending a small fortune, ultimately giving you the best return on your investment. They’ll work hard to present your property in the best possible light to potential purchasers, advise you on various presentation techniques and possibly even recommend a quality stylist or two. Some agents even have tradies on hand to ensure improvements are made quickly and inexpensively. It’s also important to remember that, once you’ve chosen your agent, the best thing you can do is follow their suggestions… budget permitting of course.
 
TIP: First impressions count! And no one is better suited to creating a lasting first impression in your unit, than a professional stylist. Using a stylist is a great way to add value without having to do a complete reno... after all, it’s amazing what a coat of paint and some new soft furnishings can do to give buyers a positive first impression.  
 
4. What is your commission?
Time to get down to business! By now you’ve asked several questions to find out what an agent can do for you, and your city property, so it’s time to find out at what cost. That’s right, we’re talking commission - how much is the agent making from your sale? The best way to choose an agent based on their commission fee is by asking yourself: “Is their rate fair?”
 
TIP: Would you opt for the cheapest heart surgeon to operate on your heart? Of course not! Nor should you choose the cheapest agent to sell your most important asset – your property! And for good reason! Often he or she needs to discount their fee for whatever reason. Certainly something to think about! Try to remember that often the busier (and sometimes more costly) agents are the talented agents; these are the ones which tend to have more exposure to buyers and can often match the perfect buyer to any unit.

5. How often do you stay in touch throughout the sales process?
Every good relationship comes down to communication, and the relationship between you and your agent should be no different. Before you decide on your real estate agent it’s good to know where you stand by asking how often they’ll keep you in the loop throughout the entire sales process.
 
Make sure you also find out what their plan of attack is and how often they’ll be providing you with feedback… will you hear from them every week? Feedback is very important to the overall success of the sale as it gives you and your agent an opportunity to review your marketing campaign. Whatever you decide, it’s important to ensure you’re both on the same page from the get-go and that you’re happy with the arrangement.

TIP: We recommend ensuring your agent is willing to contact you immediately after each inspection. They should also update you regularly to discuss the success of your marketing campaign and the interest of potential buyers for your unit.

Something else to be aware of, if you have a lease on your property – when does it end?  If you have a tenant locked in for another 12 months on a lease you could be excluding owner occupiers from looking at your property and missing out on potential enquiries.  A good time to list is 2 - 3 months from the end of a lease, this gives you the best of both worlds and also remains attractive to both owner occupiers and investors alike.

At HS Brisbane Property we believe it’s important to keep sellers (and buyers for that matter) informed every step of the way. We pride ourselves on providing a first-class service to every vendor we work with and our number one goal is to strive for a premium result with each and every sale we make. To experience our quality service for yourself, contact Hannah on 0419 782 133 and make an appointment.

In this edition we take a close look at the stamp duty rebate. A hot topic that looks at an area of our industry that (many beg) is in desperate need of change. Well at least this is the case, according to Grant Thornton’s The Real Estate & Construction Industry Insight Report, which was released in November 2014.
 
Thornton’s report was compiled from direct meetings with public and private organisations including developers and owners of commercial and residential property, builders and civil contractors and industry consultants.
 
Today we look at what Stamp Duty means to the Government, what impact does it have on Queensland families looking to purchase and what ideas the general public have come up with to replace the current system if indeed it ever does come to an end!
 
1.     Stamp Duty is a major revenue raiser for the Government
Property is always one of the first outlets in which the Government will turn to whenever they need to reduce the budget deficit or increase the surplus. In Queensland alone property taxes contribute to an overall $3.8 billion in revenue raising dollars. This breaks down to $980 million in land taxes, $2.42 billion in stamp duty and $390 million in other taxes.
 
2.     Does Stamp duty have a negative impact when it comes to affordability?
While stamp duty is an additional cost that comes at the expense of the purchaser, it is something Queensland purchasers and financiers take into account when budgeting for property purposes and is generally considered ‘just part of the process’.  While it is a significant cost, it is one purchasers are prepared for when starting the process of a new property purchase, for most families it does not have an overly negative impact on their budget and affordability.
 
3.     If Stamp Duty was scrapped, what could be the alternative?
Should the decision to eradicate stamp duty take place, those who responded to Thornton’s study suggested some of the following would be suitable alternatives:
 
- Introduce a reasonable value threshold (e.g. $500,000) before stamp duty applies.
- Reduce possible infrastructure charges.

- Implemet more concessions for first home buyers.
- Introduce a scheme (somewhat similar to HECS) whereby home buyers have the option to pay stamp duty and taxes over a period of time instead of all being required upfront.
- Offer an incentive for home owners by applying a discount on taxes and stamp duty when a property is listed as a primary place of residence.
- Reduce/restructure current property taxes.
-  Increase GST to replace stamp duty.
 
These are really interesting concepts and straight from the mouth (or keyboard) of the general public.  What do you think of these ideas?  Are you for or pro the current Stamp Duty system?
 
We would love to hear your thoughts on this very popular topic.   Do you think it’s time for a change?  Comment below or phone Hannah today to find out how Stamp Duty could impact your next sale or purchase.

Last week we had a look at quotes from a few property market gurus at what we could expect for this year in Brisbane.  This week are are delving further into what is in store for our wonderful city and what it all means for those looking to buy or sell.
 
There is plenty of good news on the horizon for those looking to invest in our city with several industry experts predicting that Brisbane’s median house price is tipped to jump by a huge 17 per cent in the next three years.
 
This is a very exciting prospect for property owners, prospective buyers and investors alike – after less aggressive growth in previous years due to weak migration and population growth says Angie Zigomanis, Senior Manager for BIS Shrapnel.
 
While this might be so, the increasing presence of foreign buyers means that some capital cities are starting to do far better than others. Brisbane being one of them!
 
In fact, Brisbane is currently leading the property race according to NAB Group chief economist Alan Oster, who recently said while overall the latest NAB Residential Property Index for the third quarter of 2014 remained unchanged, Queensland has now overtaken Victoria as the strongest state.
 
That’s right, we’re now on top. Meaning now is the perfect time to invest in Brisbane. Whether you’re an owner-buyer or you’ve purchased a unit purely as an investment property, the good news is that things are on the up and property prices are set to rise.
 
Question is, how will Brisbane fair in 2015? The NAB Economics’ analysis expects Brisbane and Sydney to lead the market in the next year, followed by Melbourne and Adelaide, with Perth lagging.
 
“All the pieces were falling into place for the beginning of an upturn as property prices are still affordable and interest rates are low.   It makes for a very exciting era for Brisbane and we encourage those thinking of selling to capitalise this opportunity” said Hannah Schuhmann Principcal of HS Brisbane Property
   
With so much future growth set for Brisbane’s real estate market, maybe your 2015 resolution could be to “double your investment”? Whatever you decide, to make sure you’re on the front foot of every real estate opportunity before it rises, contact Hannah on 0419 782 133 and make an appointment now.