Century 21 Port Douglas Blog

Port Douglas Property Update

The median sales price in the suburb Port Douglas for Jan to Mar 2013 is $248,250 based on 62 government verified sales. This represents a 35.1% decrease when compared to the same period as last year.

In addition to this, compared to the same period last year, there was a increase of 31.9% in the number of properties sold from 47 to 62 recorded government verified sales. There are currently 144 for sale listings in Port Douglas.

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Unchanged Interest Rate Good News For Port Douglas Borrowers

Century 21 Port Douglas real estate is part of the biggest sales organisation in the Asia Pacific region, and Phil Holloway Principal/Licensee believes that the decision by the Reserve Bank of Australia to hold interest rates at 2.75 per cent will provide an ongoing incentive for Far North Queensland homebuyers and investors looking to make a property purchase.

“An excellent decision for Australia’s residential property market, with the Reserve Bank electing to keep the official cash rate on hold for a second consecutive month,” said Principal and Licensee  of Century 21 Port Douglas Real Estate, Phil Holloway.

Phil Holloway believes this is welcome news for those in a position to buy a property as the cash rate remains at a 53-year low. “It comes at a time when the housing market  in Port Douglas, Cooya Beach, and Mossman looks to be improving in a number of areas.” said Phil Holloway. “We are experiencing an increase in buyer confidence and activity especially with people prepared to buy land and build residential property.”

As part of its decision, the Reserve Bank reasoned that it was appropriate to leave the cash rate unchanged as easing financial conditions would contribute to a strengthening of growth over time, consistent with achieving the inflation target.

The Reserve Bank’s decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index results, which showed that median home values In Australia’s capital cities rose 1.9 per cent in June, to be up 3.8 per cent throughout the 2012/13 financial year.

In addition to rising capital city dwelling values, we are seeing many Port Douglas investors receiving strong rental returns for the first time in four years” continued Phil Holloway.

Auction clearance rates have remained strong in Sydney and Melbourne, and we generally follow suit up here in Far North Queensland.  National stock levels have increased, and there is an array of attractive finance packages on the market – factors that should encourage buying activity moving forward.


Phil Holloway is Co-Owner and Principal of Century 21 Port Douglas Real Estate. Phil has 26 years real estate experience in Port Douglas and the surrounding shire. Phil came to the real estate industry after 20 years in the Dept. of Education as a teacher, special education consultant and School Principal. For competent, sound and valuable advice in buying or selling, contact Phil and be guaranteed of the best service. Call Phil on 0419 419 419 anytime. 

 

Posted in Auctions, Australia, Australian Home Buyers, Australian Homes, Banks, Century 21, Century 21 Port Douglas, Cooya Beach, Interest Rates, Interest Rates Australia, Mossman, Port Douglas, Property, Property Investor, Property Port Douglas, Property Values, Propety Prices, Real Estate | Tagged , , , , , , , , | Leave a comment

Great News For Home Buyers – RBA Keeps Rates On Hold

The Reserve Bank of Australia today decided to hold the official cash rate at 2.75 per cent – a decision that is expected to provide an ongoing incentive for homebuyers and investors looking to make a property purchase.

 

Posted in Australia, Australian Home Buyers, Australian Homes, Banks, Century 21, Century 21 Port Douglas, First Home Buyers, Home Loans, Housing Affordability, Housing Data, Interest Rates, Investors, Port Douglas, Property, Property Investor, Property Management, Property Port Douglas, Property Tips, Property Values, Propety Prices, RBA, Real Estate | Tagged , , , , | Leave a comment

Port Douglas Property Update

 

Thanks to Herron Todd White for the below report. Whilst it does not refer directly to Port Douglas, Cairns is our closest statistical indicator of Month to Month property trends.
The Cairns property market has been experiencing stronger levels of sales activity for some time, but the increasing volumes are only just starting to translate through to higher prices.

Prices have been increasing by up to 5% over the last twelve months inthe more popular suburbs but the overall median has been generally steady.

The overall April 2013 Cairns median house price trend stood at $353,300, which is 1.8% higher than it was in April 2012.

Cairns is over the hump of the forced property sales which inundated the market and kept prices depressed during 2012.
The incidence of Mortgagee-in-Possession (MIP) and Receiver property sales has reduced by 70%, from a peak of 15% of the market in May 2012 to 4.5% of the market in March 2013.
The cleanout of MIP and receiver stock is another positive sign for the Cairns property.

Source: Herron Todd White – Independent Property Valuers

Bottom of the Cycle for Cairns and Port Douglas

 

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Holiday Lets – Risks and Rewards

Renting out an investment property as short stay accommodation can be lucrative, but it can also come with some associated risks. Furniture, games consoles, cutlery and crockery can be broken or stolen – making inventory management and insurance for short stay letting a must.

Holidaying guests are more likely to enjoy a drink or three, which raises the prospects of them injuring themselves, damaging your furniture and/or annoying the neighbours. Short stay lets in properties zoned “residential” are very common but, surprisingly, lie in legally murky waters.

In two recent landmark court decisions, authorities ruled that short stays did not constitute “dwelling” and, as such, were not permitted under a residential zoning.

The first case, heard by the Building Appeals Board, related to an apartment block in the Watergate Complex in Melbourne’s Docklands, which was nicknamed ‘Partygate’. The building’s manager, Marshall Delves, testified that short-stay guests caused the majority of problems including: fire brigade call-outs; parties involving large groups of young people; blocked fire exits; and increased maintenance charges.

In the second case, the owner of a six-bedroom holiday home in New South Wales was banned from renting the property for periods of less than three months. The NSW Land and Environment Court was told that the Terrigal property had been used for short stays for bucks and hens parties, with late-night noise and strippers disturbing a family who lived next door on a year-round basis.

Gosford City Council is preparing to address the ruling by specifically allowing holiday lets in certain types of residential-zoned properties. This would follow the lead set by other proactive coastal areas in which holiday rentals are an important source of revenue.

General Manager of EBM Insurance Brokers RentCover, Sharon Fox-Slater, said the decisions could potentially have ramifications in every state in Australia.

“The common thread here is that action was taken because the holidaymakers caused problems,” Ms Fox-Slater explained.

“Short-stay accommodation requires more work than a regular rental arrangement. Professional property management is key to making sure that your investment isn’t occupied by troublemakers.

“Regular landlord insurance is not appropriate for guests staying only a day or two. Owners need an insurance specific to the industry, such as RentCoverShortTerm.”

Conflicts between long-term residents and holidaymakers have prompted the Real Estate Institute of New South Wales to develop a Holiday Rental Code of Conduct, launched in March.

Source: EBM insurance

Holiday Home In Port Douglas

 

Posted in Australia, Australian Home Buyers, Australian Homes, Century 21 Port Douglas, Far North Queensland, Home Ownership, Housing Affordability, Housing Data, Investors, Property, Property Insurance, Property Investor, Property Port Douglas, Property Tips, Property Values | Tagged , , , , , , | Leave a comment

Rising Consumer Sentiment A Positive Sign For the Port Douglas Housing Market

Century 21 Port Douglas Real Estate, part of the largest real estate sales organisation in the Asia Pacific region, believes that the recent upward shift in housing market sentiment, as seen in RP Data-Nine Rewards Consumer Housing Market Sentiment Survey, is a positive sign for the national housing market.


The May 2013 survey showed that 80 per cent of respondents believe that now is a good time to buy a home and 41 per cent expected dwelling values to rise over the next six months. Both measures represent a considerable improvement in the views of consumers from the October 2012 survey.

“It is not surprising that housing market sentiment has increased when one considers the lending environment and steady house price growth that we saw over the first quarter of this year,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

“Capital city dwelling values rose 2.9 per cent in the year to May 2013, auction clearance rates are currently robust in Sydney and Melbourne, and interest rates are at 53-year lows.

“These factors, in combination, have likely had a positive impact on consumer sentiment and should further encourage new buyer activity and inquiry over the coming months.”

The RP Data-Nine Rewards statistics preceded housing finance figures from the Australian Bureau of Statistics, which showed that the number of home loan approvals increased by a seasonally-adjusted 0.8 per cent in April, with the number of new home loans approved rising 3.5 per cent to a three-and-a-half year high.

“While it appears that many people are still preferring to pay down debt rather than take on additional loans, the recently reported increases in housing finance – particularly for investors and new homes – strengthens the view that consumer confidence may be returning to the property market,” concluded Charles Tarbey.

“The last six months the Port Douglas property market has seen a steady increase in buyers particularly those looking for retirement homes and residential investments,” said Century 21 Port Douglas Real Estate Franchise Owner Ian Johnson.

“In the last 3 months, the Port Douglas Real Estate market has also seen a renewed interest from buyers wanting to secure a parcel of vacant land to build on. This trend shows that confidence in the Port Douglas Real Estate market is coming back ” continued Century 21 Port Douglas Real Estate Franchise Owner Ian Johnson.

“We are optimistic that our traditional selling season which runs from June through to October will be a bumper year in Port Douglas.” concluded Century 21 Port Douglas Real Estate Franchise Owner Ian Johnson.

Ian Johnson - Century 21 Port Douglas Real Estate Owner/Auctioneer/Senior Sales Consultant

Ian Johnson - Century 21 Port Douglas Real Estate Owner/Auctioneer/Senior Sales Consultant

 

With over 3,000 offices, Century 21 is the largest real estate sales organisation in the Asia Pacific region, a region vital to Australia’s continued economic success.

 

Posted in Australia, Australian Home Buyers, Australian Homes, Century 21, Century 21 Port Douglas, Consumer Sentiment, Far North Queensland, FIRB, First Home Buyers, Great Barrier Reef, Housing Affordability, Housing Data, Port Douglas, Property, Property Investor, Property Port Douglas, Property Tips, Property Values, Propety Prices, Queensland, Real Estate | Tagged , , , , , , , , , | Leave a comment

RATES STAY ON HOLD BUT ECONOMISTS WARN OF FURTHER RATE CUTS

The Reserve Bank has today kept the cash rate on hold at 2.75% – in line with the predictions of most senior economists in Australia, sighting the major reason as the recent depreciation of the Australian dollar against the US dollar.  TD Securities’ head of Asia-Pacific Research, Annette Beacher stated that “the six percent fall in the Australian dollar since the May Board meeting removes the urgency for near-term action.”
In an overall sense, it appears that low inflation data is providing grounds for potential further rate cuts in the months ahead. Inflation rose by a minimal 0.2% in May following the last rate cut, but was offset by low fuel prices and declines in domestic travel costs. This represents a 0.1% decrease since April, and sees the annual inflation rate approach the lower end of the target band of 2-3% at 2.2%.
Furthermore, property prices took a hit over the month, declining by 1.2% nationwide. Job ads continued to fall by 2.4%. If figures continue this way or if they worsen, we could see another rate cut as early as next month.
According to Westpac’s Chief Economists, Bill Evan “the markets are currently pricing a 76% probability that a cut of 25bps will happen by August 2013 and a 100% probability of that cut occurring by year’s end and a 75% probability of a second cut in that timeframe”.

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How to buy and negotiate like a professional and bag a bargain

Smart investors know that when purchasing property, the right property hardly ever means the absolute cheapest property. Market research and networking are crucial when looking to bag a bargain. It’s also equally important to be in-the-know in regards to silent sales.

 

Also, act with timeliness if you want a successful portfolio that will build wealth. Smart investors will know when to watch out for market opportunities that will help them bag a bargain.

 

SILENT SALES

A silent sale is a property that is sold before being advertised to the public. This can be beneficial for buyers as there is no competition and they may be able to get the property for a cheaper price. Here’s how:

 

  • Professional buyers’ agents often buy properties as silent sales. They can do this more easily because they have built up a relationship with local agents and know when a property is coming up for sale.

 

  • The public can increase their chances of purchasing silent sale properties by building up                            a relationship with agents.

 

  • This takes time and money, so the alternative is to invest in a buyers’ agent who has pre-existing connections and knowledge.

 

SPEED

Time is of the essence; you can often get a better price by simply having a signed contract a few hours before someone else. Giving an agent a signed unconditional contract with a 10 per cent deposit is often a guaranteed deal, and agents love knowing that the deal will go through.

The key to beating others to a deal is to recognise opportunities, have the property pre-inspected (valuer, builder, strata and pest) and make a quick decision. If you concentrate on issues that are worth a few thousand dollars, you could miss out on a deal that could potentially make tens of thousand dollars in the long term.

 

BUYING THE RIGHT PROPERTY DOESN’T ALWAYS MEAN BUYING THE CHEAPEST

When it comes to bagging a bargain, you must ensure that you purchase the right property; this is the main factor that will enable you to build long-term capital gain and develop a successful property portfolio. To buy and negotiate like a professional, your strategy doesn’t have to be complicated – it’s often the simple things that work to amplify your property goals and help you achieve great financial success in the long term.

 

By Chris Gray, Empire CEO

 

Posted in Auctions, Australia, Australian Home Buyers, Australian Homes, Century 21, Century 21 Port Douglas, HOME MAINTENANCE, Home Ownership, Housing Affordability, Housing Data, Property, Property Insurance, Property Investor, Property Port Douglas, Property Tips, Property Values, Propety Prices, Real Estate, What is Your Property Worth | Leave a comment

Act now for a capital works claim – time is almost up.

On July 18, 1985, the Australian Taxation Office introduced legislation which allowed property investors to claim capital works allowance (Division 43) – commonly known as building write-off – on residential properties.

Essentially, this write-off allows residential property investors to claim a deduction for the wear and tear on the structural elements of a building, including items that are fixed to the structure.

Building write-offs can be claimed at four per cent over twenty-five years for structures that commenced construction between 18/7/1985 and 16/9/1987. After this date the allowance will adjust to a rate of 2.5 per cent over forty years.

The four per cent capital works allowance will soon be exhausted for properties which fall within these dates.

For example – on July 1, 2010, a property investor purchased a residential property that commenced construction on October 1, 1986 and was completed on April 1, 1987. BMT Tax Depreciation was able to determine that the original construction qualified for the four per cent building write-off. There was also a small $50,000 extension which took place in 1995 that qualified for the 2.5 per cent claim, resulting in a $1,250 deduction per year.

The investor was able to claim four per cent of the historical construction cost, which was estimated at $180,000, excluding plant and equipment. This worked out to be $7,200 in building write-off deductions in the first year of ownership plus the $1,250 available for the extension.

In the second year, the owner was able to claim the final remaining portion of the original building write-off. In the third year, there will be no original building write-off remaining. However, the $1,250 deduction available for the $50,000 extension will continue through to 2035. In addition, the depreciation available on the plant and equipment will also continue as can be seen in the table below.

When purchasing an investment property, checking into the remaining building write-off will impact on the depreciation deductions and therefore, the property’s cash flow potential. If unsure, simply call BMT Tax Depreciation and one of our property depreciation experts will be able to assist.

Article Provided by BMT Tax Depreciation.

 

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Lift In Home Loan Approvals Suggests Strengthening Housing Market

Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that the lift in home loans approvals over February 2013 could point to a further strengthening of Australia’s residential property market.

 

According to recently released figures by the Australian Bureau of Statistics (ABS), the total number of owner occupied housing commitments increased by two per cent (seasonally adjusted) in February, following four months of declines.

 

“While it’s early days, a lift in housing finance approvals over February is good news for Australia’s residential property market, and comes at a time when other sectors of the housing industry are also showing signs of improvement,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

 

“In recent months, we have seen notable increases in capital city dwelling values, buyer enquiry levels and auction clearance rates, as well as less discounting by vendors. These figures, in combination, should send a positive message to prospective buyers who may be looking at entering or re-entering the market.”

 

The ABS data showed that finance approvals for new houses rose 1.5 per cent in February, while approvals for new homes and established homes jumped 0.6 per cent and 2.1 per cent respectively.

 

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