Buying property? Then this blog is for you!!

This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

If you would like to talk property, please contact us:
Office: 1300 911 576
Martyn Fleming: 0400 000 822
Guy Clarke: 0409 055 128
E: enquiries@morpheusproperty.com.au
W: www.morpheusproperty.com.au
_________________________________________________________________

Showing posts with label First Home Buyers. Show all posts
Showing posts with label First Home Buyers. Show all posts

01 August 2011

Changes to Boost & Stamp Duty take effect today, 1 August 2011

As of today, there are a few adjustments to how stamp duty is calculated for home owners.

Important points:
  • $10,000 boost when building a new home (PPoR or IP) for anything less than $600k
  • Removal of 'Home Concession' stamp duty concession (now investors pay the same as home owners)
  • Changes to First Home Concession and Vacant Land Concession (some compensation for the removal of 'Home Concession')
  • Changes to Stamp Duty rates
So what is the impact pre & post 1st August 2011 in Queensland? Below are a few examples describing the four main components: stamp duty, concession, first home owner's grant & the building boost grant.

First home owner - Building New @ $450k


First home owner - Buying Established @ $450k


Investment Property - Building New @ $450k


Investment Property - Buying Established @ $450k


04 July 2011

Do we qualify for a Lunchbox Session with Morpheus Property?

Morpheus Property make life easier for people wanting to buy property. We deliver on this promise from day 1.

Although Morpheus host a variety of events, we also cater for our busy professionals. We bring our high quality seminars to your workplace where there are 20+ staff members.

Your Buyer's Agent will come to your workplace and cover two of our most popular topics. These topics are carefully chosen to help people achieve better results when buying property. It's delivered in the following format.

Session 1:
20 min - Market Update
10 min - Q & A

Session 2:
20 min - Property Negotiations
10 min - Q & A

Your Morpheus Property Buyer's Agent will deliver the material on-site. This is usually in your training room, boardroom or auditorium and allows you to eat lunch at the same time.

The Q&A segments offer a chance to participate and ask all the questions you'd like to ask an experienced property Buyer's Agent.

How to organise your Lunchbox Session?
Contact Morpheus Property on 1300 911 576 and speak to your local Buyer's Agent. They will arrange a suitable time to visit, set up and offer useful some valuable information.

Employers - This is a great opportunity to show you care! This is a simple and easy way (and doesn't cost you anything) to ensure your staff members are investing their income wisely and creating wealth and a better lifestyle. Morpheus Property offers solutions to employees where we'll do the property research, hunting, inspecting and negotiations while they work. The efficiency gains are very attractive for employers.

Employees - If you'd like us to run an event at your workplace, just send us your employer or HR Manager's contact details and we'll make the arrangements.

30 May 2011

Walk the block and meet your neighbours!

As a buyers agency, we've developed a comprehensive checklist for inspecting properties. Our agents use this to ensure our clients get a comprehensive opinion and anything identified is brought to their attention.

As you can imagine, there is a wide array of topics covered on our checklist and if I were to brain-storm this with you, we'd have many items. Here's the last item on my list that I find invaluable and should be yours... "Go for a walk!"

That's right, go for a walk and meet your new neighbours. At this point, you will find out things you didn't know about the property, the mood in the neighbourhood and any potential misgivings about living there.

You see, you can (and should) do all your research and ensure the numbers are right. You should check to see that it has the right amount of space, shade, natural light, air-flow, fittings, etc. It should offer a good return on investment and be in a strong capital growth area (for our investors), ... whatever the property needs to meet your purchase objective.

However, when we buy a house, it's not the building and land we're really buying, it's a living experience. If that experience is made to feel like hell-on-earth due to high levels of friction in the neighbourhood, then it's unlikely to be a good deal.

After I've inspected a property inside and out, it's also part of my inspection routine to include a lap around the block. I introduce myself to the neighbours and politely ask them a few questions. It's amazing what they'll tell you!

During my walks over the years, I've heard many interesting stories:
- who has an Apprehended Violence Order (AVO) against who
- various types of neighbourhood conflict
- all sorts of questionably legal activities ("herb" gardens, frequently visiting customers of "herb" gardens, etc)
- what happens in the local park across the road
- the meddling retired lady, who visits everyone at least daily
- the rock band or Playstation enthusiasts, who practice until 3am most nights of the week
- how much people are paying as tenants
- planned (but not registered) renovation and development activity

Don't forget, this information is also highly relevant for property investors. Bad neighbourhoods will have an impact on your tenancy retention and ultimately, the return and value of your property.

About 10% of the time, this 'street intelligence' has resulted in us crossing a property off the list. Sometimes, it can reveal an opportunity you weren't aware of or give you the confidence that your new neighbours are likely to welcome you into the area. As an additional benefit, if you do buy the property, you'll already know some of your new neighbours!!

Happy hunting!

05 March 2011

Event: The Great Debate, 16th March "Property, Shares or Business" - What's best?


TO REGISTER, GO TO: http://www.wealthyfrog.com.au/event/event/detail/event/9037

Brisbane: The Great Debate 2011
The Great Debate - expanded! Property, Shares or Business- what's best to create wealth?

The age old debate by investors about whether shares or property are the better investment is just as controversial as the chicken or the egg debate! This year, we are adding the dimension of Business as an equal contender!

Our debaters are strong advocates for their side - it's sure to be an interesting evening followed by what promises to be lively discussion and question time.

TO REGISTER, GO TO: http://www.wealthyfrog.com.au/event/event/detail/event/9037

OUR DEBATERS:
Martyn Fleming, Morpheus Property - known for his passion for property!
Jeff Kumnick, RBS Morgans - a solid share man!
Bill Doyle, Altitude Communications - business = money in Bill's world!

Who should attend:
1. Share and property investors, business owners
2. Potential property or share investors or those looking to start a business
3. Property investors with equity or cash (but not enough for their next property purchase)
4. Those interested in an interactive discussion about investing in shares, property or business and the respective upsides and downsides.

We look forward to welcoming you to an interesting evening!

Contact:
Phone Enquiries: 1300 852 664
Email Enquiries: claire.grlj@wealthyfrog.com.au

When:
16 March 18:30 - 21:00

Where:
Brisbane Worker's Community Centre
Cnr Given Tce & Latrobe Tce
Paddington, Queensland


TO REGISTER, GO TO: http://www.wealthyfrog.com.au/event/event/detail/event/9037

24 January 2011

Queensland Floods and Property

Morpheus Property would like to extend our thoughts to everyone feeling the impact of our recent floods in Queensland.

We know these are tough and tragic times for families all over Queensland. After getting muddy with home owners in the Brisbane area, you couldn't help but be encouraged to see so many Queenslanders chipping in and getting their hands dirty.

We'd like to also applaud the efforts of all the behind-the-scenes volunteers who helped with the clean up. We saw mums baking cakes, plenty of donations (money and essential goods), people sharing their gardening tools and equipment, shop owners spreading food and refreshments to the home owners and volunteers and a generally giving attitude from so many people. It makes you proud to be a Queenslander!!

In the aftermath, we have fielded a variety of property related questions, ranging from flood relief packages, insurance, tenant v landlord responsibilities, the impact on prices in both flood-affected areas, as well as neighbouring suburbs.

For those directly affected, I recommend contacting Centrelink first on Ph: 180 22 66 and they can help process your initial relief claim, as well as point you in the right direction for the Premier's Flood Relief Package.

We are able to report that none of our clients were affected by the recent flooding and this is not by accident, but by design and diligent processes. There are some simple methods you can use to ensure you're investment has reduced risk of damage by flooding or overland flow.

We have also fielded some questions about the buying process and how to best protect yourself in case your conveyancing efforts discover the property you're buying is flood. We'll write a separate article on this soon. However, if this (or anything else) is an immediate concern to you, please feel free to call us on 1300 911 576.

01 December 2010

New Queensland Pool Safety Laws start 1st December 2010 - Today

The Queensland Government has introduced new pool safety laws aimed at reducing the numbers of children drowning in Queensland swimming pools. These laws affect new and existing pools.

Stage 2 of the new laws commence on 1 December 2010.

There is a vast range of information and resources available on the Queensland Governments Department of Infrastructure and Planning Website.

From 1 December 2010, pool safety certificates are required when selling or leasing a property with a pool. Pool safety certificates must be obtained from a licensed pool safety inspector. Information for pool owners, pool safety inspectors and pool safety inspector course providers is available on the Department of Infrastructure and Planning website: http://www.dip.qld.gov.au/poolsafety.

Find a Licenced Inspector here:
https://www.smarteda.qld.gov.au/pools/inspectors/inspectorSearch.action%3bjsessionid=3D199030FF5A5A8BCE9907E0F40C5FD3

Pool Safety Fact Sheets: If you are Selling or Leasing a property these facts sheets contain some very valuable information:
http://www.dip.qld.gov.au/fact-sheets/pool-safety.html

New Pool safety Flyer
http://www.dip.qld.gov.au/resources/poolfencing/pool-safety-brochure.pdf

New Pool Safety Guidleines
http://www.dip.qld.gov.au/guidelines/pool-fencing-guidelines.html

New Pool Safety Forms
http://www.dip.qld.gov.au/forms-templates/pool-safety-forms.html

All properties with regulated pools need to be included in the state-based pool safety register by May 2011. Initially Local Governments are including details of pools on the register. Pool owners will need to check the register to ensure their pool is registered.

Free public information sessions have been held across the state and there are two more of these sessions left. These information sessions are an opportunity for you to hear more about the new pool safety laws and what they mean for industry, business and pool owners.

Tuesday, 7 December 2010 2.30 pm - 6 pm Brisbane North Arana Leagues Club, 274 Dawson Parade, Keperra.

Monday, 13 December 2010 2.30 pm - 6 pm Ipswich Ipswich Golf Club, 1A Samford Road, Leichhardt.

For more imformation about these sessions contact:

Building Codes Queensland
Telephone: +61 7 3239 6369
Fax: +61 7 3237 1248
Email: buildingcodes@dip.qld.gov.au
Location: Level 5, 63 George Street, Brisbane, Queensland
Postal address: PO Box 15009 City East, Queensland 4002



If you have any questions contact Morpheus Property on 1300 911 576 or send us an email - enquiries@morpheusproperty.com.au. We can direct you to a licenced expert in your area.

Yours in property
Morpheus Property

18 November 2010

What a Morpheus Agent looks for when inspecting a property? Your home or investment property!

Outside the Building

The first thing you should do as you arrive and walk up to any property, is to look at the roof from a distance. Does it look clean, in good repair or does it look poorly maintained and in need of replacing?

Inspect Decks, Verandas and patios.

The things to watch for here are:
• The quality and condition of all timber including the balustrades
• Ensure any footings comply with building standards and do not provide access for pests or opportunity for wood rot to set-in.
• The springiness of the floor boards could indicate they are spaced too far apart or are beginning to fail.
• External flashings to roofs and windows should be regularly monitored for water resistance
• Ensure good design principles have been followed and relevant Building Codes or legislation met by having a licensed inspector perform a building and pest report.

Underfloor space

Examine the condition of all building, shed and patio slabs, paying special attention to concrete cancer, dampness and damp damage. Underfloor space should have good drainage and ventilation in order to prevent timber rot. Common defects are dry rot or broken timber members. Steel members are unaffected by age, however could be affected by chemicals or heat. Look for concrete cancer and spot damage to slabs it is found.


Car lock-ups, ports and sheds

Check at the practical size of car spaces and the storage of other equipment particularly if there isn’t a shed. Conduct the same inspection you carried out on the timber deck, on any wooden car-ports.

See if the property has a shed and how practical it is in size and layout. The point to note here is that if the property lacks a shed or other appropriate storage then more than likely all that stuff that normally goes into a shed is going to end up in your garage. And this could mean that eventually your car ends up in the driveway or worse still, on the road.


Roofing - The wind and rain

The thing to watch for here are the quality of fixings for the battens and roofing, affixing roofing material to battens requires a special type of screw fixed in a particular way. If it is a tile roof, then the condition of the tiles, ridge cappings and points are the important issue.

Look for evidence of poor maintenance or damage to the roof, with the aim being to make sure that all water drains to storm water mains, road kerb and channel and rubble pits without damage to the building or nuisance to neighbours.

Looking at the quality and maintenance of guttering and drainage which if done properly will prevent water entering the house. Roofing should be bird and possum-proof.


Sewerage, drainage, guttering and roof plumbing

The main issues to look for in this area are the adequacy of the piping in place and how well has it been maintained? A coat of paint can hide a multitude of sins, so don’t confine your inspection to just how it looks. Scratch the surface and see what is revealed.

The number and capacity of down-pipes should reflect the size of the roof area. Make sure gutters are clear of leaves and branches. Ask questions about the sewerage and water pipes and see if there have been any tree root problems. If they exist, they should tell you about any material facts that affect the property.

Check any tanks are properly installed and whether they are gravity fed or serviced by an appropriately sized pump.

Electrical installations

The first point to be made is that ALL electrical work must be carried out by a licensed Electrician. Some points of note to make are that electrical items like air-conditioners are well maintained and clean.

Smoke detectors should be installed in all homes, regardless of their age or whether they are timber or brick construction. Double check all electrical leads, plugs and external equipment such as pool pumps. Outside electrical items can be damaged by wind, rain and constant exposure to the sun.

Check all outside lights and power points are well maintained and in working order.


Gas supply and bottled gas

The connection point of the gas supply to the house can suffer rust and other connection problems. Check bottles and gas fixtures & fittings for leaks and ensure that pipes supplying underground gas are not rusting, particularly at ground level.

All plumbing and gas work should be carried out by a licensed plumber and gasfitter.

House Interior

Bathrooms / En-suite

check all wet areas for adequate water resistant sealing. The cistern and pan should be checked for cracking, leaking and stability. Check the floor for cracking and if concerned in any way use water to test the gradient water flow. If the underfloor to the wet areas can be accessed, check the underfloor for water staining and damage.

Make sure the ensuite has good lighting and sufficient natural or mechanical ventilation. Check the operation of the taps and wash basin.

Kitchen
Things to look for? Check to see if:
• the location of kitchen appliances isn’t concealing any defects.
• The kitchen bench-tops for lifting laminate or water damage.
• The sink taps for water flow, leaking, dripping and water hammer.
• Tiled areas should be checked for loose or cracked tiles or defective grouting and sealant.
• Poor quality construction material isn’t hiding behind bench surfaces. Standard grade chipboard will be quickly ruined by any contact with moisture.
• Make sure all fixture appliances are in working order, including those often forgotten ones such as insinkerators etc …


Laundry

Check the gradient of the floor and how well it drains to the floor waste. Ensure taps operate well and check water flow; leaking; dripping and water hammer. Tiled floors should be examined for loose or cracked tiles and defective grout or sealant. Adequate ventilation is required, either natural or mechanical.

Check behind appliances for damage to walls, floors and to appliances themselves. Full waterproofing around wet areas will help prevent damage by water entering the timber.


Internal roof framing

This inspection should be conducted by a licenced professional because you will have to get up into the roof cavity and know what you are looking for. Your professional should look for bowing and broken timbers. The position and condition of all internal bracing, which will affect the structural capacity of the roof. Roof battens may also be damaged, if there are excessive loads. This inspection should reveal any water leaking or damage from broken or displaced roofing tiles, lifting roofing materials or poorly secured sheeting.


Stairs

Check stairs to ensure stringers, hand rails, posts, treads and risers have not been damaged by rot or rust. Be aware that patches and paintwork can hide defects. Any movement will need to be repaired, as a moving tread or balustrade may gain increased momentum and fail without warning. For external stairs, good protective coatings and weather-proofing will help prevent damage and failure.


Ceilings

Check the ceiling plaster for any evidence of sagging, nails popping, defective lining and surface cracks. Dampness often indicates roofing defects. In cases of severe water penetration, inspect the ceiling joists closely. Heat and humidity coupled with water near the timber, creates an ideal atmosphere for wet rot. Examine the plaster around cornices for looseness or cracking which may indicate structural defects. If in doubt get a licensed professional to make further investigations.


Kitchen, bathroom and laundry Cabinets, Appliances & Fittings

Check all permanently fixed cabinets and appliances in wet and high traffic areas, as they can hide defects under or behind them. All vanities, cupboards and storage systems should be checked for damage to doors and drawers.

Check Vacuum Systems for effectiveness and checked for blockages.

Floors, doors and windows

Floors

All floor types including concrete floors should be checked for cracking and even levels.

Wooden floored areas should be checked for springy and squeaky boards, rot, out-of-level boards, dampness and damp damage. Serious problems can occur where ground floor joists are poorly ventilated, so make sure you inspect sub-floor areas if possible.


Doors

Blemishes on the surface of newly painted areas may conceal corroded frames. Damaged doors are usually easy to detect / notice. Ensure doors and windows operate smoothly. All timber exterior doors are likely to absorb rainwater, as they are rarely painted there. Look for signs of blistering paint or varnish down around the bottom. In some cases the timber swells to prevent proper operation.

Windows

Check for adequate window flashing around mouldings and sills. Any water staining, peeling or loose paint could be indicative of more extensive damage. If a window frame is soft and easily penetrated, it could lead to rotting frames. External surfaces need to be maintained with waterproof flashings and coverings (paint, oils or varnish) so check for evidence of this maintenance.

Housing Build types

Brick & Brick Veneer

Ensure the weep holes in external brick walls are clear of debris. Ensure weep holes under windows and above the Damp Proof Course are visible. Check for dampness and damp damage. Ensure method of water proofing does not create more problems than it solves. A common problem is foundations failure and mortar build up within cavities.

Also look for the tell-tale mud tracks of pest infestation on external surfaces. Garden beds and timber products directly adjacent to the slab and external building walls are danger signs that should be investigated to their fullest extent.

Timber

Paint can be used to cover defects and the use of matte finish paints can be used to hide fresh paint work. Check for water damage and damage due to exposure to the elements. Ensure that house cladding is not covering up defective boards. Check timber stud wall frames for damage.

All timber boards should be examined for rot and pest damage. If there is superficial damage, then determine the cause and extent of the damage. White ant investigation should be done by a licensed Pest Inspector with attention paid to the presence of both physical and chemical barriers. Inspection of garden beds and loose timber or timber products against the structure of the house may reveal white ants or other pest’s problems covered.

Steel

Weathering steels may appear to have good structural adequacy but should be checked very closely. If in any doubt, seek professional advice from a structural engineer or master builder.


Yours in property
Morpheus Property


This article is for the general use of Morpheus Property, its clients. Neither Morpheus Property Group Pty Ltd nor any of their officers or employees gives any warranties nor accepts any liability for any decision with respect to investment or non investment, sale or purchase of property which is made as a consequence of the use of this article.

Morpheus Property Group Pty Ltd believes the statements, information and recommendations contained herein to be correct and not misleading but give no warranty in relation thereto and expressly disclaims any liability for any loss or damage which may arise from any person acting or deciding not to act partly or wholly on the basis of any such statements, information and recommendations.

14 August 2010

Property Seminar and Networking Opportunity

29 July 2010

SEMINAR - Buying the right property at the right price!


Consider 6 Key Things Before Investing in Property…

Know what your options are for a well informed decision.

Remember, even if you are buying a home to live in yourself, you should do so with an investment mindset. This event is equally relevant for you and your situation.

You are invited to this must attend information seminar designed for anyone thinking of buying or investing in property.

Hear the answers to important questions, such as:
• What makes a good property investment?
• What type of investment properties are there?
• Which refinancing options are suitable for me?
• How can I utilise my equity?
• How do I start the process?

Gain invaluable investment tips from Morpheus Property –one of Brisbane’s leading property research and investment firms, specializing in sourcing high growth and superior quality residential property.

Gain invaluable information about asset protection from Quinn & Scattini – one of Brisbane’s finest legal firms who specialize in assisting their clients with every legal matter that comes up during a life time.

Seminar 1Date: 4th August 2010
Time: 6:30pm
Address: Icon Bar & Bistro, Raby Bay Harbour,Cleveland Qld 4163
Cost: $30 - ($10 from every ticket will go to Bravehearts).
Coffee and tea provided

Numbers are limited so RSVP at this link - http://clevelandseminar.eventbrite.com/
Yours in property
Morpheus Property

09 July 2010

Let's talk about Negotiation


"When negotiating a property deal Knowledge is Power!"


Negotiation

Negotiation is an art, not a science. The art of negotiation is not win-at-all-costs. It is about negotiating a contract where the seller can feel like they are winning in the deal. Remember if the seller has taken the trouble to list their property then they are motivated to sell (some more than others).

One of the keys to property negotiation is not becoming emotional about the transaction. It is only when you are able to walk away from a deal that you truly begin to negotiate, otherwise all you are doing is haggling over the list price.

We have a list of 19 questions we ask every agent about each property, which researches the seller’s position and also acts to reduce price expectation. Some examples of these are:

1. How long has the property been on the market?
2. Why are they selling?
3. Who came up with the list price? How was that price reached?

The fatal traps of negotiation

At Morpheus Property we have experienced many different negotiation styles, techniques and situations. We would like to share some of the pitfalls of negotiation.

1. Poor or no planning - This has to be the biggest failing of many negotiators and the major reason for not achieving the best outcome. Take time to develop a plan of attack.

2. Don’t talk too much - One of the overlooked talents in negotiation is the ability to “shut-up”. If you remain calm and listen more, you will be amazed at what you will learn and achieve.

3. Negotiating verbally - A written offer shows you mean business. It will also give the sales agent better ammunition to convince the seller that this is your best offer. Always put a sunset clause on any written offer. Making the offer for a limited time will encourage the need for action.

4. Not following your gut instinct - This doesn’t mean following the first reaction that comes to your mind. However you do need to develop a gut instinct for the situation. Gather as much data and information about a property deal and then let it have time to ferment. Listen to your gut instinct but only after you have told your gut all it needs to know.

5. Take no prisoners approach - Coming in hard and fast will rarely deliver the “best deal”. Take your time and build rapport. Find out as much as you can about the seller and the property. Steady as she goes will win the day!

6. Don’t aim too LOW - Be careful what you ask for, you might just get it. Fortune favours the brave and much of negotiation is having the guts to ask for something.

Yours in property
The Morpheus Guy's

24 May 2010

News: Housing Supply Dwindles in Queensland

At Morpheus Property, we like to take a balanced view on the news articles we read. This article from the Sunday Mail (23rd May 2010) talks about the property shortage in Queensland.

It seems affordability is about to squeeze the dream from many people's grasp and leave home ownership to a smaller percentage of Australia's population.

QUEENSLAND needs to build more than 900,000 new houses and units in the next 21 years to meet projected population growth.

But new figures show reality will fail to meet expectations with under-supply expected to grow into tens of thousands on current approval numbers.

Experts say the shortage will force up the price of housing, including rents, and possibly leave a generation of adults unable to afford a new home.

In 2009, there was a shortfall of more than 10,000 houses on the 47,000 needed to match population growth.

Figures from Queensland Treasury and the Australian Bureau of Statistics showed the under-supply was spread across the state. Brisbane built nearly 2000 fewer dwellings than needed last year, while in the north, Townsville and Cairns were down 1000 and 800 respectively. Toowoomba's housing shortfall was more than 450.

With demand exceeding supply, first-home buyers, already jittery following interest rate rises, have even less chance of entering the market.

Real Estate Institute of Queensland managing director Dan Molloy said recent research showed first-home buyers were down 60 per cent on March 2009.

"These figures really show how much of a struggle it is for prospective homeowners to get into the market in Queensland," Mr Molloy said.

Master Builders housing policy director Paul Bidwell said the biggest issue was developers' inability to access finance from banks.

Red tape from local councils, massive infrastructure charges and lack of available land were also serious issues.

"It's biting at a number of levels," he said. "Developers can't get access to funds and it's harder for buyers to get home loans approved."

Queensland Council of Social Service director Jill Lang said those on lower incomes were increasingly bidding for rental properties alongside households which have traditionally been able to buy into the property market.

Queensland's population is expected to increase from 4.5 million to as much as 7 million by 2031.


Once again, Morpheus Property would love to hear opinions from property investors and home buyers. How does news like this influence your decision to buy, your budget or the timing of your purchase?

Feel free to share your comments, or contact Morpheus to discuss - 1300 911 576.

20 May 2010

Prepare for house prices to increase!

Extract from Courier Mail article today:

TONY Abbott has accused the Rudd government of pushing up the cost of housing for young people through the proposed resource super-profits tax on quarry industries producing sand, gravel and cement.

At a quarry in Queensland yesterday, the Opposition Leader said "as things stand Labor's great big new tax is not just a tax on BHP and Rio and the other big companies, it's a tax on dozens, if not hundreds, of small family-run businesses, like this one, which are vital, absolutely vital, for Australians' everyday life".

"This is not just a tax on energy. It's a tax on building and it's a tax on food because this tax hits quarries, it hits phosphate. So, it really is a tax that will have ramifications for every Australian, ramifications for their jobs, ramifications for their retirement savings, ramifications for their daily cost of living," Mr Abbott said.

Mr Abbott said the proposed tax on quarrying meant the cost would "get passed on to Australian home builders, which is the last thing that anyone should want, but what we're seeing increasingly is that every day there is more evidence that this great big new tax is a disaster"..... (more)


In short, housing prices are either about to increase a little or a lot. For people planning to build their own home, now is the time.

Morpheus Property is helping home buyers to carefully select the right builder and help them navigate the maze of options, including where to build.

However, home buyers should heed the warning and lock in today's prices before they increase. To get help, buyers should call 1300 911 576.

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07 May 2010

"Bark worse than his bite"???

Some buyers are led to believe that real estate agents look after people selling and buying property, while others make their allegiances a little clearer.

Below is a scanned leaflet that was left in my letterbox. It's designed to promote a specific agent / agency. As you can see, it has a picture of a terrier and claims, "I can get TOP PRICES for homes because I'm like a dog with a bone. Once I get the scent of a purchaser, I sink my teeth in and won't let go until they pay $Top Dollar$"
Perhaps not the most sophisticated approach I've seen, particularly the parting sentence, "You won't see me pooping on your footpath or your property!". However, it does reveal the true nature of how some real estate agent feel about buyers. Real estate agents are there to meet their legislative obligation (getting the best result for the vendor) and will use various means to do this.

The only people in the market place truly representing buyers are Exclusive Buyer's Agents. The typical services of a Buyer's Agent are to:
- Research
- Find property
- Analyse them in detail
- Negotiate on your behalf
- Coordinate the purchase through to settlement

Buyer's Agents offer you their skills and experience to help you get a better result. If you'd like to learn more about how a Buyer's Agent can help you, call 1300 911 576 and avoid the agent's bite!

05 May 2010

How does the market decide price?

From a macro level, interest rates, employment figures, supply and demand are all examples of things that have a bearing on property prices.

More locally, we need to consider things like infrastructure projects, commercial activity, new developments in the area. Those factors, which are close enough to have an impact on a property's price.

When it comes to the specific property, we look at the characteristics of the block of land and any improvements (including the building itself).

When we've identified a specific property, we expect that someone will buy the property within a certain price range. For example, we might look at a house and assess it to have a 98% probability that it will be bought for somewhere between $420,000 - $485,000 (there are always a few occasions where some buyers pay silly prices and baffle everyone).

This price range is influenced by a number of factors, but the following two are most relevant:
1/ How prepared and equipped are the people selling the property?
2/ How prepared and equipped are the people buying the property?

Any inequality and we start to see movement away from the median price. If the selling team has the advantage, we expect to see a property sold at a price above market value. If the buying team has the advantage, we expect to see the reverse - a below market value purchase.

Q: What are you doing to ensure you're not out-gunned when buying property?
A: Get an experienced Buyer's Agent on your team to stack the odds in your favour!

Appoint your Buyer's Agent by calling Morpheus Property today on 1300 911 576.

Yours in property.

02 March 2010

Interest rates rise to 4%

The following interest rate announcement from the RBA, resulted in three of the major banks lifting interest rates in step with the rate rise (including ANZ, CBA and St George). Two thirds of economists predicted the rate rise and there are more to come through 2010.

Australia raises interest rates to 4%

Australia's central bank has raised interest rates, for the fourth time since October, as it seeks to cool its growing economy.

The increase, to 4% from 3.75%, was widely expected by economists.

Australia was the only major economy to avoid recession, and the first to raise rates from 50-year lows as the economic crisis eased. It avoided the worst of the slump due to government spending and massive Chinese demand for its commodities.

The government had introduced a number of multi-billion dollar stimulus packages, including increased infrastructure spending and cash handouts to most Australians since the end of 2008 to lift consumer spending.

Following the latest rate rise, the Reserve Bank of Australia said: "With growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average."

Australian Treasurer Wayne Swan said further rate increases must be expected.

"Rates can't stay at emergency levels forever," Mr Swan said. "Rate rises are an inevitable consequence of a recovering economy that is outperforming the rest of the world."

Australia's economy only contracted in the final three months of 2008.

It therefore avoided recession, which is generally defined as two consecutive quarters of negative growth.

Source: BBC News 02/03/2010

18 February 2010

BIS Shrapnel says, "Get ready for the next investment boom: Property"

Article from The Australian today:

I KNOW we're barely out of the office market downturn, but I can't help thinking that the preconditions are being set for an investment boom this decade.

The current setback, plus risk-averse debt and equity markets, will continue to impede office development, setting up stock shortages and strong rises in rents and property values. It won't take long to forget the global crisis and the recent disaster in the property markets.

Meanwhile, the feeling of relief that the worst is over is giving way to cautious optimism. The yield correction that hit property prices is largely over. Attention is turning to leasing markets and tenant demand.

In Australia, the economic downturn was mainly financially driven rather than a real side investment-driven downturn.

Unlike other developed economies, we had a credit and equity squeeze rather than a financial crisis. Banks and investors ran from risk after the excesses of the financial engineering boom. Equity prices corrected. The downturn in the economy hit operating profits. But the financial system remained sound.

Property investment markets were hit hard, with the GFC triggering an unwinding of the preceding financial engineering-driven phase of gearing up and yield compression. And leasing markets faced reduced demand just as new supply was coming on. The extreme pressure we all felt early last year has now passed, with the damage not nearly as bad as most feared.

The economy is now clearly emerging from the recession that never was and the recovery has already begun. Confidence has picked up with a run of good news. Retail sales are still patchy since the household handouts, but consumption expenditure has passed its trough.

Strong infrastructure spending is cushioning weak business investment. Businesses have raised equity to reduce gearing, positioning them to start investing again.

Residential property has already rebounded and that will flow on to construction.

But it's not all sweetness and light. The high Australian dollar is damaging the competitiveness and viability of domestically produced tradeables industries, particularly manufacturing, tourism and other tradeable services. But mining, health, wholesale and retail trade, and professional and financial services are already picking up.

GDP growth is recovering from last calendar year's 0.8 per cent to an expected 2.6 per cent this year on the way to growth averaging between 3 and 4 per cent over the subsequent three years. Fortuitously, with pressure to reduce government budget deficits, private investment will take over from public investment as the engine of growth.

The Australian economy is on the threshold of a major cyclical upswing and the next five years will be strong. Underlying inflation remains stubbornly high, but is coming down slowly.

Our forecast is that cash rates will reach 6.5 per cent by the time the cycle matures.

Getting back to office markets, tenant demand is not an issue in a strong economy. Having stalled last year, employment has rebounded over the past five months, with growth of about 1.7 per cent through the year to January. Last year the impact of the downturn on unemployment was softened by companies reducing working hours rather than jobs. We expect employment to recover slowly as employers increase working hours before taking on new staff.

Improved confidence among tenants has led to some withdrawal of sub-lease space. Office leasing demand will improve from here. In some cities, there is still residual pre-GFC supply coming on. But new development has stopped.

The real point is that rents are too low to underwrite new development. While there is a logic for owner-occupiers to build while costs are low, irrespective of current financials, developers need a pretty good reason to build now even if they can get the finance. Some can build, but most won't.

Given lead times, supply will remain constrained for another three to four years at least. That means that improving demand will quickly absorb excess stock, leading to tightening vacancy rates and a shortage of stock.

Will we forget the lessons of the GFC? It won't take long. I can't help a comparison with the sharemarket collapse of 1987. The subsequent inflow of funds into property drove the 1989 boom. Low vacancy, tightening leasing markets, strongly rising rents, firming yields and strong property returns through the middle of this decade will attract investment capital. At BIS Shrapnel, we're looking at internal rates of return of about 20 per cent for Sydney and Melbourne commercial property over the next five years. That's extraordinary.

Frank Gelber is chief economist for BIS Shrapnel

To get a great investment property, contact Morpheus Property on 1300 911 576 to get your Buyer's Agent working on your behalf.

16 February 2010

Getting familiar with contracts BEFORE you buy!

The contract is the brief document that states who's buying the property and at what price. However, it also contains other very important conditions.

We always recommend you seek legal advice before signing any contract to buy property. Not only do most people do this, the Form 30c (pictured below) makes this point quite clearly. However, at Morpheus Property, we go one step further. We recommend you become familiar with standard contracts BEFORE a real estate agent even begins to draft one for you!!

Why?

Because this will help you understand how to negotiate effectively. When a real estate agent gives you their 'best of intentions' and assertions about the property, they're meaningless until they're written in your contract. Be prepared... sometimes, there will be misunderstandings or things will go wrong!! When things go wrong, all eyes will turn to your contract and you need to ensure you've protected yourself. Not only do the conditions need to exist in your contract, they need to be useful and legally enforceable.

The main areas to become familiar with (for the purposes of negotiation) are:
  • Excluded Fixtures
  • Included Chattels
  • Price and deposit handling
  • Finance and Building/Pest conditions
  • Special conditions
Take a look at the following blank REIQ contract and find the areas mentioned above.

If you have any questions about contracts and would like competent legal advice, contact us on 1300 911 576 and we'll refer you to a property legal specialist in your area.

23 January 2010

Alternative ways into the property market - #2

You don’t have to go it alone to get into the property market, says the Real Estate Institute of Queensland.The REIQ says there are a number of options available for those who may not have the wherewithal to purchase a first or new home buy themselves.

We'll examine one option today - "Mum and dad finance"

Baby boomer parents are increasingly helping their children into the property market. Creative ways they are giving their children a "leg up" include co-buying where the parent(s) provide the equity and the children take responsibility for paying the debt.

The other arrangement is by way of a guarantee. The traditional bank guarantee has been replaced by a product that allows a parent to guarantee an amount to supplement the borrower's deposit.

The size of the guarantee can be limited to a specific amount which protects the parent from losing their home should the child default on the loan.

"While declining housing affordability is making it increasingly difficult for first home buyers, as the Queensland property market is taking a breather from its strong results of last year, opportunities currently exist for buyers who can afford to enter the market," Mr Molloy said.


If you are considering this path, please talk to us about getting reputable legal advice. We deal with exceptional property lawyers and can help ensure you get the best advice. Contact us on 1300 911 576 or send us an email at enquiries@morpheusproperty.com.au.

Get More Info >>

17 January 2010

Alternative ways into the property market - #1

You don’t have to go it alone to get into the property market, says the Real Estate Institute of Queensland. The REIQ says there are a number of options available for those who may not have the wherewithal to purchase a first or new home buy themselves.

We'll examine one option today -
"Co-buying"

One option is Co-buying - also known as shared ownership, joint ownership or co-ownership.

This is when two or more people decide to spread the financial burden and buy a property together. Parents are buying with their children; siblings are buying together, as are friends, extended family members, even colleagues.

By joining forces, you can afford somewhere bigger, better and sooner than you could alone.

For investors, the obvious advantages include the reduction in capital required, the reduction in other associated costs involved in buying a property - and as a result - the reduced risk, especially when better locations can be made more accessible.

"It is important to remember that a mortgage mate, a co-buyer or a co-investor is in essence a partner. There are significant legal and financial obligations to consider and plenty of due diligence is called for," REIQ managing director Dan Molloy said.

"It is vital that all parties have the same intentions and goals and a legally prepared document - such as a Deed of Trust - is advisable for anyone entering into a co-buying arrangement."

If you are considering this path, please talk to us about getting reputable legal advice. We deal with exceptional property lawyers and can help ensure you get the best advice. Contact us on
1300 911 576 or send us an email at enquiries@morpheusproperty.com.au.

Get More Info >>

14 January 2010

Do your research!!

There are three main levels you should be examining a property when buying:
- Location
- Block of land
- Building

It's not by accident that these are listed in this order. You'll notice they are in descending order of what influences the capital growth of your property. The old adage, 'location, location, location' is still as relevant today as when the famous saying was first uttered. The difficulty many people have is in assessing how this does and will relate to capital growth over time. The same can be said for the block of land and building.

When looking into a property, it's not only important to understand it's value, but to ensure the property compares well against your property purchase objective (why you want to buy the property). For each property you examine, write down your findings and be as comprehensive and impartial as possible. I also recommend seeking the most reliable source of information relating to each. Don't rely on the real estate agent for all your answers.

At Morpheus Property, we MPA Reports for buyers who want peace of mind and competent advice before they buy. An MPA Report compares your needs to information we research about the target property. The information is collated by your Buyer's Agent from a wide variety of sources, including a site inspection, real estate databases, council databases, various websites, the real estate agent (although not much emphasis is placed on this source), etc. We then compare and make recommendations about a good buying price and how that might be achieved.

For example, for a block of land (second component), we look at things like:
  • size
  • shape
  • orientation
  • slope
  • views / aspects
  • privacy
  • breeze exposure
  • easements
  • zoning
  • DCP
  • heritage
  • flood records
Early discovery can save you plenty of time and money before you go to contract, spending money on a building & pest inspector, conveyancing, etc.

If you would like to order a report for your property, contact us on 1300 911 576. If you would like to see a free sample, send an email to mpa@morpheusproperty.com.au