CONFIDENCE in Queensland’s property sector has fallen for the first time in nearly two years on the back of the latest tax grab proposed by the state government, a new survey reveals.
CONFIDENCE in Queensland’s property market has fallen for the first time in nearly two years on the back of the latest tax grab proposed by the state government.
The ANZ/Property Council Survey released today, taken in the weeks either side of the November state election, has recorded a drop of two index points for Queensland in the March 2018 quarter — the first decline in 20 months.
The state now has the lowest confidence levels of all Australian jurisdictions.
The re-elected Palaszczuk Government has announced plans to increase land tax rates by 2.5 per cent on properties worth more than $10 million and more than double the tax rate for foreign investors from 3 to 7 per cent.
Property Council Queensland executive director Chris Mountford said the results confirmed industry concern about the proposed property tax hikes, which he argued would hurt jobs growth and home values.
“At a time when we need to do more to catch up with other markets, increasing taxes on property is a big economic risk,” Mr Mountford said.
“The impact of these proposed tax increases can already be seen in the figures.
“Forward work schedules, staffing level expectations, and Queensland’s economic growth predictions are all down.”
The Property Council is urging the Government to reverse the proposed tax increases, saying ordinary Queenslanders would pay the price because businesses would be forced to pass on the cost to consumers.
“The proposed land tax hike is ultimately going to flow through to affect capital values, and impose higher rents and costs on businesses,” he said.
“I think there’s a general lack of understanding that foreign buyers are a key ingredient to getting new housing construction starts going.
“If we’re making it harder for those people to invest in Queensland, ultimately that’s going to flow through to lower levels of activity.”
For the last two years, Queensland has consistently lagged behind the major states when it comes to confidence, only remaining in front of Western Australia, where the end of the resources boom created significant economic challenges.
But the latest survey shows a surge in confidence in WA.
“Clearly confidence is starting to return to the WA market,” Mr Mountford said.
“They’ve turned a corner and yet we haven’t had that sentiment shift.
“If anything, we’re still bumbling along behind the other states.”
But ANZ senior economist Daniel Gradwell said that he was not too concerned about the confidence drop in Queensland during the quarter,
“Overall sentiment is still sitting at pretty solid levels, even though it has dropped off recently,” Mr Gradwell said.
“I think it’s fair to say Queensland has essentially moved past its mining-related downturn.
“We’re starting to see economic activity improve, particularly across the labour market with unemployment at its lowest level in about four years.
“So confidence is already translating into actual economic activity.”
St George Economics noted in its latest economic outlook for Queensland that the state’s economic growth had picked up over the past year, with business investment gaining momentum, commercial construction strengthening and robust employment growth.
Nationally, the survey reveals New South Wales has lost its throne to Victoria as the property industry with the strongest outlook.
It gathered responses from 1374 professionals within the residential and commercial property sector.
“It’s a large sample size, so we’re confident it’s reflective of what’s actually happening on the ground,” Mr Gradwell said.
Originally published: www.news.com.au
Why owner-occupiers are loving the Chevron Island apartments at Allure
Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space
Offering a unique blend of inner-city convenience and coastal bliss, it is no surprise that owner-occupiers are acting quickly to secure an apartment at Allure.
The latest development by Macquarie York, Allure is “inherently opulent and meticulously crafted”, a resort-style development in the heart of the Chevron Island precinct.
Delivering 95 two, three and four-bedroom apartments, the project boasts generous floorplans and a sleek contemporary design by BDA Architects.
Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space.
“Whether you’re entertaining or enjoying some private reflection time, you will always feel right at home”, the project marketing reads.
Among other design details are the subtle natural timbers and stone that celebrate the beauty of organic materials and connect the interiors with the landscaping outside.
Contemporary bathrooms feature a semi-frameless shower, large format tiling and intelligent storage.
However, it’s the wealth of facilities designed to enhance quality of life that are pulling in buyers to the Gold Coast development.
The rooftop, the pinnacle of Allure, delivers panoramic views from north to south, while residents can enjoy an exclusive lounge, barbeque and dining area, infinity pool as well as several viewing decks to take in the impressive vistas.
A coastal aura and resort experience is felt as soon as you walk through the prominent lobby doors, with a double-storey atrium is crafted to draw natural light while bespoke lighting add a touch of elegance.
Chevron Island is a location that allows Allure to feel both secluded and connected.
“Everything you need to lead an exceptional life is at your fingertips, yet the hustle and bustle of modern life is kept at bay”, the developers said.
The development is expected to reach completion in mid-2022 but discerning buyers should act fast to secure one of these exclusive residences.
Article Source: www.urban.com.au
Investing in property: The art of picking the right drivers for price growth
It’s all a question of demand and supply, and nowhere is that more critical than when planning a residential property investment.
The art of picking the right drivers for price growth is a tricky one.
You might have found the perfect property in a popular area with lots of jobs, a healthy rate of population migration and excellent infrastructure but if there are plans underway for 1000 new homes in the next year … suddenly, it’s no longer such a good prospect.
“The basic equation that underlines everything is a low level of supply and a high level of demand,” says Kate Hill, founder and director of investment property buyers’ agency Adviseable.
“And you want that imbalance to be sustained, not just short-term in a volatile mining market, for instance, or for the demand to be extrinsic, like the quick blip in Brisbane when the Olympics come but then everyone moves on. It has to be good, long-term demand to drive capital growth.”
You also need to judge the demand for the type of property too.
There’s no point in investing in a two-bedroom apartment if everyone there is looking for four-bedroom houses.
Don’t be too entranced, either, by the promise of good capital growth in a spot where rents are low and there might be a high vacancy rate and too many days on market for property sales.
Uwe Jacobs, the founding director of Property Friends and author of the book, The 7 Secrets of Highly Successful Property Investors, says being enticed by the lure of negative gearing schemes is a common error of people trying to build a property portfolio.
“The main driver for investment is the balance between the short-term income of rental income and the long-term prize of capital growth,” he says.
“That rental money is what’s going to sustain you during periods of low, or no, capital growth so your investment doesn’t eat you out of house and home.
“The vast majority of people invest for financial independence, choices in retirement or leaving a legacy to children, so highly negatively geared properties aren’t the way to go. You need a more risk-averse strategy.”
That means not skipping essential research, he advises.
All factors like vacancy rates, days on market, median prices, growth forecasts, any upcoming property developments, and whether there’s an influx of people – or they’re leaving – are all critical to calculations.
“And you need to visit the area to check that it physically matches the research,” Jacobs says.
More than almost anything, the area where you’re considering investing should also be liveable and desirable.
“It should have amenity close by,” says Lachlan Vidler, director of the Atlas Property Group.
“That means transport options for people to get to work easily, shops, cafes, restaurants and parks, so there’s plenty to do when family or friends visit. Don’t be too caught up in promises of infrastructure to come, either. How many promises of infrastructure have there been which takes decades to arrive – if it ever, eventually, does?”
Article Source: www.domain.com.au
What to ask agents when being taken through a display suite online
Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections, useful both during lockdown and for those buying out of state or internationally
Australians have been staying at home on and off during the intermittent lockdowns and for homebuyers, this means a delay, sometime indefinitely, in purchasing property.
However, data in both the first Melbourne lockdown and beyond shows that online visits and enquiries of property listings have surged by over 50%.
Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections. This is useful both during lockdown and for properties available for purchase off-the-plan, or available across state or national borders when in-person inspection may not be possible.
For a more in-depth guide on off-the-plan buying check out our expert guide.
1. What’s the cost per square metre for each floorplan configuration? (make a note of this and compare to other properties you virtually view)
This is vital information to compare the value of the property to others in the area as well as the suburb/region you are looking to buy in. It is important to make sure you are buying a property that suits your needs and has room to grow, one marker of such potential is if the $/psqm is below median for the area, however it isn’t the be all end all
2. When is construction slated to start/be completed?
Construction projections are important information as it will have an effect on how long you may rent or choose to settle on your current property. Ensure the builder/construction firm is reliable and has a good reputation to reduce the likelihood of delay.
Keep in mind that some delays may occur if a coronavirus outbreak occurs.
3. Which items within the display are included and which are optional upgrades?
Straightforward enough, make sure you don’t get blindsided and chuck out your old washer/dryer just because the display suite has one, double check with the agent to see what is supplied by the developer as some offer white-goods packages and optional deals.
4. What customisation option do you have available?
Depending on the design firm and developer, some firms offer a higher degree of customisation, this tends to increase linearly with price as the more expensive the property is, the more customisable it generally is. Either way you should ask as many developments offer at minimum a choice in colour pallete and fittings
5. What’s the ceiling height? (compare this to your own ceilings at home)
While this many not mean as much to someone who is 150 cm tall, for prospective basketball players… and everyone else, it’s worth knowing ceiling height as this can impact whether the home feels claustrophobic or spacious and airy regardless of your personal height.
6. Which aspect does the particular apartment I’m considering buying face? (take note of where the sun is throughout the day in your own home)
This is important for natural light purposes, as well as potential views as some apartments will offer a better aspect than others.
7. Who built the display suite and will they be constructing the actual apartments/townhomes?
A vital point of note is the builder, don’t misunderstand something because of an unrealistic display suite.
8. If taking a virtual tour, ask the agent to zoom in on details so you can see the build quality
If the builder doesn’t put their best foot forward with the display suite, it is worth asking the agent about it and whether other properties you have looked at demonstrate better build quality or detailing.
Article Source: www.urban.com.au
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