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Gen Y is the most upbeat about property prices

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QUEENSLANDERS are more positive about housing affordability than anywhere else in Australia, with Generation Y the most upbeat of all when it comes to property prices, according to new research.Moreton Investor, Property Management, Real estate Moreton, Mortgage Broker Moreton, Moreton property market,Moreton property prices

The annual realestate.com.au Housing Affordability Sentiment Index (HASI), which tracks the sentiments of Australians towards the cost of housing, reveals that all states and generations have a brighter outlook on property prices in general than 12 months ago.

This is despite statistics based on the RP Data-Rismark Daily Home Value Index showing capital city home values have all improved over the last year.

The HASI results were driven by an easing of household expenses and debt combined with increasing household savings.

The index also revealed that first-home buyers are returning to the market, making up 46 per cent of those looking to buy, compared with 28 per cent at the same time last year.

The HASI is based on a national survey of 2400 online panel members conducted by independent research company Research Ink on behalf of realestate.com.au.

In Queensland, 37 per cent of respondents believed their finances would improve (an increase of 6 per cent from 2012) and 28 per cent believed housing affordability would improve (up 7 per cent from 2012).

Generation Y (born 1981-1993) are the most positive about housing affordability in the country, driven largely by an optimistic outlook on their finances with 45 per cent expecting their financial position to improve over the next six month – significantly more than any other generation.

Fourteen per cent of the Generation Y’s surveyed reported they owned an investment property and home – an increase of 6 per cent on 2012 – and 24 per cent of those in the property market said the current economic conditions had increased their likelihood of buying or building.

Place Estate Agents Bulimba sales agent Shannon Harvey said she had seen a younger age group coming back to the market this year.

“They have been the most fragile with the volatility of the market previously, whereas the older buyers have seen it all before,” Ms Harvey said.

“Sentiment in definitely up.”

Narangba Gen Yer Jeremy Baker, 27, said he and his partner had opted for position over price when buying their first home earlier this year.

“We could’ve bought something more affordable but the location wasn’t desirable,” Mr Baker said.

He said the couple’s strong job security had been a key factor in purchasing, although low interest rates had also played a part.

Financial commentator and Finance Editor for research and ratings organisation CANSTAR, Justine Davies, said the research was flagging what buyer activity was expected to look like in the near future and the jump in first-home buyers looking to enter the market was encouraging.

“To me that indicates there is a real feeling now that home ownership is becoming more affordable, in part due to low interest rates that are boosting consumer sentiment,” Ms Davies said.

“As well as low interest rates though, there’s also the fact that Gen Y are getting older, with a greater proportion of Gen Y settling into their careers and, as the HASI found, feeling financially confident.

“That confidence is translating into a willingness to enter the property market.”

She said consumer confidence was vital to the property market for two reasons.

“One – from a buying point of view because it encourages potential buyers to get proactive: to visit their financial institution, work out their borrowing capacity and start actively looking,” Ms Davies said.

“Consumer confidence is also important in encouraging owners to list their property for sale. If there is no, or low, confidence some owners will delay listing, which reduces the available stock and therefore the flat market becomes a self-fulfilling prophecy!

“So I think consumer confidence creates more buyers, encourages for properties to be listed for sale and is therefore good for everyone.”

The latest housing finance figures from the Australian Bureau of Statistics shows first-home buyer finance commitments increased over the month of July, up 8.6 per cent to 7977.

National results from the HASI included:

• More than half of those in the market to buy or build were willing to sacrifice or reduce spend on recreational vehicles (66 per cent), luxury items (73 per cent), car upgrades (63 per cent), overseas holidays, clothing and entertainment to attain their dream

• Of those in the market to buy or build, 46 per cent (up 4 per cent) were willing to increase their current level of debt by more than 10 per cent to attain their dream

• A third or less were willing to sacrifice property features, with the exception of a pool

• 57 per cent (up 5 per cent) were willing to buy or build more than 10km outside of their ideal location

• 23 per cent would consider buying with a friend or family member

 

Original article published at www.news.com.au by Teela Jurgensen, The Courier Mail, 21/9/2013

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First home buyers, investors in Queensland cashing in on spring selling season

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Investors in Queensland
Investors in Queensland

Potential buyers look to secure a property at auction. Picture: Luke Drew.Source:News Corp Australia

THE number of homes for sale in some of Queensland’s entry-level markets has surged this spring selling season, as first home buyers and investors emerge from hibernation to hunt for bargains.

Local real estate agents are reporting a 50 per cent jump in the number of homes hitting the market in the outer northern suburbs of Burpengary, Morayfield and North Lakes since the start of August.

And new figures from property research firm, CoreLogic, reveal new listings are up 11.9 per cent in Brisbane over the month and 2.8 per cent higher than they were during spring selling season this time last year.

Unit listings have skyrocketed nearly 90 per cent in Fairfield and almost 60 per cent in Strathpine in the past 12 months, while there are at least 30 per cent more houses on the market in Middle Park than there were a year ago.

Raine & Horne Queensland general manager Steve Worrad said there was strong demand for housing in the state’s entry-level markets, driven by first home buyers and investors, who were being lured by their affordability compared with Sydney and Melbourne.

Investors in Queensland

Biggest yearly change in Brisbane home listings by suburb. Source: CoreLogic.Source:Supplied

It comes as the number of loans approved to first home buyers nationally hits its highest level since the end of the global financial crisis.

Reserve Bank of Australia data reveals the proportion of first-home owners loans has risen to 18.5 per cent this year from a low of 12.9 per cent two years ago.

Figures from home builder Porter Davis and realestate.com.au reveal that 46 per cent of would-be buyers in the Queensland market are currently looking to purchase their first home.

Raine & Horne Burpengary, North Lakes and Morayfield principal Gina Wells said entry-level four-bedroom properties in Burpengary were selling for $420,000, while homes in North Lakes started from $550,000.In Morayfield, entry-level properties were available from $330,000.

Investors in Queensland

The number of homes for sale in North Lakes has risen this spring selling season, according to local real estate agents.Source:News Limited

“At the same time, buyer numbers are holding up, although, with increased listings, owners must price their homes sensibly to achieve a timely sale,” Ms Wells said.

“First home buyers prefer suburbs such as Burpengary and North Lakes as they are only 40 minutes by rail or road from the Brisbane CBD, coupled with the region’s affordability.”

Ms Wells said investors made up about 30 per cent of buyers in the entry-level markets because they appreciated the region’s affordability, infrastructure and historically low vacancy rates.

“We’ve had an excellent September, and we expect the property markets in this region to motor along well into December thanks to a decent level of homes for sale and consistent buyer numbers, which include plenty of Sydney investors chasing the strong yields this region offers,” she said.

Nicole Taylor, 21, and her partner, Billy Mawson-Perini, 20, have just bought their first home in Burpengary — a four-bedroom, two-bathroom house on a 663 sqm block of land.

“We started looking around Rothwell and North Lakes and actually left Burpengary to the last minute, but when we saw this place, we loved it straight away,” Miss Taylor said.

“It’s got more land and the area’s nice. It’s good for a first home.”

Investors in Queensland

This house at 9 Plaintree St, Burpengary, has just sold for $435,000.Source:Supplied

On the southside, local agents say Mount Gravatt East and Holland Park are proving hot spots for first home buyers this spring, even though median house prices in those suburbs are higher.

Stan Egawa from Place – Sunnybank said those suburbs were attracting buyers in the $600,000 to $700,000 price range.

“There is good interest compared to some of the surrounding suburbs,” Mr Egawa said.

“We’re getting double digit buyers through open homes (in Mount Gravatt East and Holland Park), which is very strong.

“In Sunnybank, we’re only getting one or two people to an open home.”

Mr Egawa said many first home buyers were looking for a home they could move in to straight away and live in comfortably, but with potential to renovate the kitchen and bathroom down the track.

“Three-bedroom, one-bathroom houses are very popular,” he said.

“Their ideal location is Coorparoo or Greenslopes, however, they’re realising that for the amount of money they’ll be paying in that area, they’re going to end up with a lot older house or compromising on block size.”

Investors in Queensland

Real estate agents in Mt Gravatt are reporting a rise in home listings and interest from first home buyers. Photo: Kristy Muir.Source:Southern Star

Rob Karaka of All Properties Group said first home buyers were active at the moment in the suburb of Regents Park, with near new or new four-bedroom, two-bathroom houses on 600 sqm blocks were selling for between $400,000 and $550,000.

Shaji Rajan has just bought his first home in Regents Park after renting for three-and-a-half years.

For just $430,000, he was able to secure a five-bedroom, two-bathroom house on a 600 sqm block at 34 Lamberth Road.

But he had competition, with his offer only accepted after another offer fell through.

“Regents Park is a very good area and it’s affordable,” Mr Rajan said.

“For our budget, we can find very good houses here and good schools and it’s very easy for us to get to work.”

Investors in Queensland

This five-bedroom house at 34 Lamberth Rd, Regents Park, sold for $430,000.Source:Supplied

Algester and Calamvale on the southside are also attracting strong interest.

Andrea Manson of Belle Property – Calamvale said listings had jumped “substantially” this spring and first home buyers were keen to get in to the market before interest rates went up. “There’s that perception it’s going to happen sooner rather than later and so many (first home buyers) are wanting to lock in a lower rate while they can,” Ms Manson said.

“Anything under $500,000 in our area is very popular with first home buyers.”

Agents in regional parts of the state are also reporting a strong start to the spring selling season.

Home sales in Bundaberg are 5 per cent stronger than they were this time last year, according to Raine & Horne Bundaberg principal Joshua Rub.

“Values remain consistent despite the spike in sales and those properties that are priced, presented and marketed professionally are selling within 3.5 weeks,” Mr Rub said.

“Sales are higher this spring simply because we have more committed buyers than tyre-kickers.”

He noted the sale to a first homebuyer of a three-bedroom house close to the beach at 25 Heritage Drive, Bargara, for $272,000 within two weeks of hitting the market.

“In Bundaberg and Bargara, local first home buyers and investors are extremely active this spring,” Mr Rub said.

Investors in Queensland

The main street of Bundaberg, which is seeing strong home sales. Picture: Tourism Queensland.Source:Supplied

In Gladstone, which had been hit hard by the mining boom hangover, home sales are at their strongest point in four years, according to Raine & Horne Gladstone principal Mark Patton.

“Well-priced entry-level properties valued upwards of $140,000 offer excellent value and incredibly competitive yields that are as high as 7.5 per cent,” Mr Patton said.

“The savvy buyers have recognised the Gladstone market has reached the bottom and they are making their presence felt at open homes.

“Many have also realised that by buying now, they’ll have a good opportunity to share in some capital growth too.”

FIRST HOMEBUYER HOTSPOTS THIS SPRING SELLING SEASON

Brisbane north

Suburb Median house price

Morayfield $357,000

North Lakes $492,000

Burpengary $464,000

Brisbane south

Suburb Median house price

Mount Gravatt East $657,000

Holland Park $710,000

Regents Park $410,000

Algester $520,000

Calamvale $680,000

Regional Qld

Town Median house price

Bundaberg $230,000

Bargara $375,000

Gladstone N/A

(Source: CoreLogic, Raine & Horne, Place Estate Agents, All Properties Group, Belle Property)

Originally published as Where Qld first home buyers are looking this spring

Source: www.news.com.au

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Renewed hopes of saving North Lakes Golf Club

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Residents living around the financially troubled North Lakes Golf Club are increasingly hopeful it can be saved from being turned into a retirement community.

The course has been bought by developer Village Retirement Group and is due to close at the end of 2019 although a DA is yet to be submitted.

The Save North Lakes Golf Club group met with Moreton Bay Regional Mayor Allan Sutherland this week and spokesman Andrew Cathcart tells Mark he is confident local will get a fair hearing.

Source: 4bc.com.au

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SEQ begins big push for a billion-dollar City Deal

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SEQ begins big push for a billion-dollar City Deal

Queensland Premier Annastacia Palaszczuk (left) and Treasurer Jackie Trad are pushing for a City Deal for south-east Queensland.

Photo: AAP/Dan Peled

Political delays dogging infrastructure projects will be history if talks on Tuesday morning cement a new billion-dollar 15-year City Deal for south-east Queensland between all three levels of government.

Such a deal could benefit 3 million people catching trains and buses, driving on highways, building businesses, looking for housing, and finding school and universities between the Sunshine and Gold coasts and west to Toowoomba.

Deputy premier Jackie Trad and Brisbane’s lord mayor Graham Quirk will on Tuesday morning outline how close the 10 south-east Queensland councils – Brisbane, Ipswich, Logan, Moreton Bay, Redland, Scenic Rim, Somerset, Sunshine Coast, Toowoomba and Lockyer Valley – are to signing Australia’s largest City Deal with the federal government.

Australia now has three City Deals backed by the federal government: Townsville (2016), Launceston (April 2017) and Western Sydney (March 2018).

Cr Quirk, the chairman of Council of Mayors (SEQ) that represents the region’s local governments, described a City Deal for the area as “a dramatic change”.

“The power of aligning the efforts of all levels of government and securing a long-term program of investment in our region will be a game changer,” Cr Quirk said.

“For the first time, all levels of government will be working in unison to protect and enhance the prosperity and liveability of south-east Queensland.”

SEQ begins big push for a billion-dollar City Deal
Brisbane’s lord mayor Graham Quirk begins a campaign for a City Deal funding package for 10 councils on Tuesday morning.
Photo: Fairfax Media

A City Deal binds the three levels of government — federal, state and local — as a group to agree to a 15-year rolling funding program of infrastructure projects that a fast-growing region needs.

As projects provide a lift in land value, that financial uplift is identified, captured and then re-invested into the infrastructure funding pool, under a model first identified in Manchester in 2012 and then in Brisbane in 2014.

In April 2018, Cr Quirk and Ms Trad met the federal government’s new Cities and Urban Infrastructure minister Paul Fletcher, when they first put forward the SEQ City Deal.

All parties described those 2018 talks as “positive”.

Cr Quirk and Ms Trad will begin the public push for the SEQ City Deal at a business breakfast at Brisbane’s Convention and Exhibition Centre on Tuesday.

“We secured Australia’s first ever City Deal in Townsville, which is paying dividends with projects like the North Queensland Stadium, delivered through the City Deal,” Ms Trad said.

“That is under construction and on track to be open for the start of the 2020 NRL season.”

Townsville’s City Deal is a 15-year arrangement, while Launceston’s is a five-year deal and Western Sydney’s is a 20-year deal.

The federal government is tipped to announce City Deals for Geelong and Darwin by September 2018, allowing planners to work on Hobart, Perth and south-east Queensland over 18 months.

How could it help?

It locks in project funds over 15 to 20 years, moving them away from political promises, which are subject to election outcomes. It could remove election squabbling over the same project.

It sets out a timetable for  projects allowing the private sector to invest more confidently.

It could help the next generation of infrastructure projects, after the Pacific Motorway, Cross River Rail and Brisbane Metro projects were all delayed by politics, angering voters.

It has also been mentioned as a way of funding Moreton Bay’s new university campus at Petrie and breathing life into the Brisbane River’s Resilient Rivers proposal.

What is Townsville’s experience after 18 months?

The Townsville City Deal was signed on December 9, 2016. It is a 15-year agreement.

Work has begun on stage two of the 25,000-seat $250 million North Queensland Stadium. It will be finished for the 2020 rugby league season. It is funded by the federal and state governments, and Townsville City Council.

The Queensland government has promised $250 million for new water supply for Townsville.

A business case for new Townsville Port facilities is almost finished and the Queensland government has pledged $75 million for port upgrade.

Townville mayor Jenny Hill said choosing the right projects was essential to make a City Deal effective.

“The City Deal provides a roadmap for delivery that breaks the political cycle so it is very important to choose the right projects or areas for reform that will make the biggest difference to a city or region,” Cr Hill said.

“All three levels of government also need to buy into the key priorities of the local area that are included in any City Deal.”

SEQ begins big push for a billion-dollar City Deal

Townsville Mayor Jenny Hill on top of Castle Hill with Townsville in the background.
Photo: supplied

SEQ City Deal – the background

  • May 2012Co-funding model idea began in United Kingdom.
  • June 2015: Queensland prepares its own case for City Deals after Ms Trad looked at the UK City Deals idea in Manchester.
  • 2016: Council of Mayors (SEQ), Queensland Property Council and the Queensland government put a plan together.
  • November 2016: Queensland Premier Annastacia Palaszczuk signed a memorandum of understanding with prime minister Malcolm Turnbull in November 2016 to develop “tailored City Deals” for Queensland.
  • February 2017: Ms Trad and Cr Quirk wrote to then-federal cities minister Angus Taylor, agreeing to a joint submission.
  • Late 2017: A Cities Transformation TaskForce established in Brisbane.
  • June 2018: Queensland’s major contractors called for a City Deal.

Source: brisbaneinvestor.com.au

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