While a mid-50% clearance rate doesn’t suggest housing prices are set to bounce back, it does imply a closer fit between buyer and seller expectations and the improved auction success rate supports the reduced rate of decline in housing values across Sydney and Melbourne. Watch “Brisbane Housing Market Update | May 2019” on Vimeo:

The rate of property price decline continues to ease-Overall we are seeing further evidence that the worst of the housing market conditions might now be behind us. Hear all the national and state based insights here.

In this month’s housing marketing update, CoreLogic share that Australian dwelling values fell half a percent last month as the pace of home value declines continued to ease after moving through a recent low point in December last year when national dwelling values were falling at a much faster rate.  The latest figures take national housing values 7.2% lower over the past twelve months to be down 7.9% since peaking in September 2017.

The slowing of the rate of decline is attributable to an easing in the market downturn across Sydney and Melbourne where an improving trend in the rate of decline has been evident over the past three months.  In December last year, Sydney dwelling values were down -1.8%, with the pace of falls progressively moderating back to a month on month decline of 0.7% in April.  Similarly, Melbourne values were down -1.5% in December, with the rate of decline slowing to -0.6% in April.

Although the national rate of decline has improved, the geographical scope of falling values has broadened.  In April, dwelling values fell across every capital city apart from Canberra, while regional areas of Tasmania, Victoria and South Australia also avoided a fall.  The broad-based nature of weak housing market conditions highlights that tighter credit conditions are having a dampening effect across all markets.

Annually, national dwelling values were down -7.2%; the largest decline since the twelve months ending February 2009, which was associated with the Global Financial Crisis.

Overall we are seeing further evidence that the worst of the housing market conditions might now be behind us.  Values are still broadly declining, however the pace of decline has moderated since December last year and there are some tentative signs that credit flows have improved, albeit from a low base.

Considering that tighter credit conditions were one of the primary catalysts for the housing market downturn, any sign that credit availability is improving would be a welcome outcome for the housing market.

According to the Australian Bureau of Statistics, lending to households for dwellings, excluding refinancing was up 2.7% on a seasonally adjusted basis in February.  Additionally, a rise in CoreLogic valuation platform activity throughout March hints at a further improvement in housing finance, which will likely be reported in the next ABS release.

Another indicator of a subtle improvement in the housing market can be seen in auction clearance rates that are holding around the mid-to-low 50% range, albeit on low volumes relative to a year ago. The correlation between auction results and housing market conditions is strongest in Melbourne and Sydney where auctions comprise a larger proportion of selling activity.

While a mid-50% clearance rate doesn’t suggest housing prices are set to bounce back, it does imply a closer fit between buyer and seller expectations and the improved auction success rate supports the reduced rate of decline in housing values across Sydney and Melbourne.

Watch “Brisbane Housing Market Update | May 2019” on Vimeo: https://vimeo.com/335683099?ref=em-share

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Quarterly rents have increased across all capital cities, bar Sydney and Darwin.

At a glance:

  • CoreLogic has released its first Quarterly Rental Review for 2019, showing rents have risen by 1 per cent during the first three months of this year.
  • Sydney is the most expensive capital city to rent with a median weekly rent of $582 per week, while Perth is the cheapest at $385.
  • Quarterly rents have increased across all capital cities, bar Darwin and Sydney.

The first CoreLogic Quarterly Rental Review for 2019, which tracks median rents and rental yields across Australia, shows that national weekly rents have risen by 1 per cent during the first three months of the year.

“This seasonally strong first quarter has delivered the highest increase in weekly rents since the corresponding first quarter a year ago”, says Cameron Kusher, Research Analyst for CoreLogic. “Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply and growing investor activity.”

“Quarterly rents have increased across all capital cities, bar Sydney and Darwin. Hobart is experiencing notable growth, with rents increasing by 3.6 per cent over the past quarter. However, with a median rent of $582 per week, Sydney remains Australia’s most expensive city for tenants by far.”

The Quarterly Rental Review also highlights a national increase in yields over the past three and 12 months. Gross rental yields for the first quarter are 4.10 per cent compared to 3.95 per cent in the previous quarter and 3.77 per cent a year ago. Darwin has the highest rental yield across the country with an annual median of 6 per cent.

Key findings – rents and yields

  • Nationally, rents increased by +1 per cent over the March quarter and by 0.4 per cent over the past 12 months. Combined capital city rents were 0.9 per cent higher than the December 2018 quarter but -0.1 per cent lower than the previous March quarter. This is the lowest annual change since CoreLogic started tracking rents in 2005. Regional rents were slightly stronger, with a 1.1 per cent increase over the quarter and a 1.8 per cent increase over the past year.
  • In the first quarter, rents climbed in all capital cities except for Darwin (-0.3 per cent). Hobart was by far the strongest performer, with a 3.6 per cent increase in rent over the past quarter, followed by Perth (+1.8 per cent) and Canberra (+1.5 per cent). Hobart also experienced the highest increase in rent over the past 12 months (+5.4 per cent) while at the other end of the scale the media rent in Darwin fell by -5.7 per cent.
  • Nationally, the median rent is $436 per week. The median rent across the capital cities is $465 per week, and $378 per week across the regionals.
  • Gross rental yields have increased from 3.8 per cent to 4.1 per cent nationally. Across the combined capitals, the average rental yield is 3.8 per cent (up from 3.5 per cent). Regional yields are far higher at 5.1 per cent, up from 4.9 per cent 12 months ago.

img_1498

 

Key findings – capital cities

  • Sydney remains Australia’s most expensive capital city market, with a median weekly rent of $582, despite a decline of -3.1 per cent over the past 12 months. While rents in Sydney remained the same as the previous month, they increased by 0.5 per cent over the past quarter. Sydney also has the lowest rental yields out of all capital cities, at 3.5 per cent over the past quarter.
  • Canberra reports a median rental cost of $550 per week, an increase of 1.5 per cent over the past quarter and 3.6 per cent over the past 12 months. Canberra is one of only two capital cities (alongside Darwin) to experience a drop in weekly rent over the past month (-0.1 per cent).
  • In Melbourne, rents are $454 a week – an increase of 1 per cent over the quarter and 2.1 per cent over the past 12 months. Melbourne also reported the greatest increase in rental yields out of all capital cities, with current rental yields being 3.6 per cent, compared to 3.1 per cent a year ago. Despite the rise in yields, Melbourne has the second lowest weekly rental yield out of all capital cities (after Sydney).
  • Brisbane rents are starting to climb again, with Brisbane now having a median weekly rent of $436.This is an increase of 0.8 per cent over the past quarter, and 1.4 per cent over the past 12 months.
  • Perth is the most affordable capital city to rent in with a median weekly rent of $385. However, it is showing signs of growth, achieving the second highest quarterly rate (after Hobart) with an increase of 1.8 per cent over the past 3 months. Over the past year, Perth rents have increased by 2.1 per cent.
  • Adelaide closely follows Perth to become the second most affordable capital city to rent a property in, with a median weekly rent of $386. Like Brisbane, it experienced a 0.8 per cent rise in rents over the March quarter. Over the past 12 months, rents in Adelaide have risen by 1.2 per cent. Gross rental yields have remained static over the year at 4.4 per cent.
  • Hobart reported the strongest growth in rents, up 3.6 per cent over the past quarter to $453 per week. Over the past year, rents have increased by 5.4 per cent. Hobart also reports the strongest growth over the past month, with a 1.6 per cent increase in weekly rent. Hobart also reported the second highest rental yield (after Darwin) of 5.1 per cent, which remained the same as 12 months ago.
  • Darwin has experienced the most significant decline in rent to achieve a median weekly rent of $458. This is down -0.3 per cent over the quarter and -5.7 per cent over the past year. In addition, Darwin also reports a drop of 0.2 per cent over the past month. However, at 6 per cent, Darwin has the highest gross rental yield out of all the capital cities (up 0.1 per cent on the past 12 months).

CoreLogic Research Analyst Cameron Kusher said the first quarter of 2019 had delivered the highest increase in weekly rents since the corresponding first quarter a year ago

“Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply and growing investor activity,” he said.

“Quarterly rents have increased across all capital cities, bar Sydney and Darwin.

“However, with a median rent of $582 per week, Sydney remains Australia’s most expensive city for tenants by far.”

The Quarterly Rental Review also highlights a national increase in yields over the past three and 12 months.

Gross rental yields for the first quarter are 4.10 per cent compared to 3.95 per cent in the previous quarter and 3.77 per cent a year ago. Darwin has the highest rental yield across the country with an annual median of 6 per cent.

According to the ABS, total household assets were recorded at a value of $12.6 trillion at the end of 2018. Total household assets have fallen in value over both the September and December 2018 quarters taking household wealth -1.6% lower relative to June 2018. While the value of household assets have fallen by -1.6% over the past two quarters, liabilities have increased by 1.5% over the same period to reach $2.4 trillion. As a result of falling assets and rising liabilities, household net worth was recorded at $10.2 trillion, the lowest it has been since September 2017.

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Based on this data from the ABS, the Reserve Bank (RBA) calculates a number of household finance ratios.

The first metric detailed from the RBA are the ratios of household and housing debt to disposable income. As at December 2018, household debt was 189.6% of disposable income, a record high and up from 188.7% the previous quarter. Housing debt was also a record high 140.2% of disposable income and had risen from 139.5% the previous quarter.

CK_002.png

 

While debt levels are quite high, the ratios of asset value to disposable income are much higher. While that may be the case, it is important to understand that if asset values fall, the value of the debt typically doesn’t reduce at the same speed, which can lead to asset value erosion. As at December 2018, household assets were 927.9% of disposable incomes. This ratio has declined as property values have fallen, down from a peak of 962.1% in December 2017. Similarly the ratio of housing assets to disposable income is currently 495.3%, down from its peak of 529.7% in December 2017. The 495.3% figure is the lowest it has been since September 2016.

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As a result of a reduction in the ratio of assets to disposable income, the ratio of debt to assets is climbing. Total household debt is now 20.4% of household assets, the highest it has been since March 2016. Total housing debt is 28.3% of total housing assets, the highest it has been since September 2014. Again, this reflects the fact that asset values are falling as debt increases.

Despite generational low official interest rates, the measures of interest payments to disposable income have risen over recent quarters. This is likely reflective of lenders lifting interest rates independently of any adjustment to the cash rate by the RBA. Household interest payments represented 9.1% of household disposable income in December 2018, their highest share since September 2013. Housing interest payments accounted for 7.6% of household disposable income in December 2018, their highest share since March 2013. Despite the cash rate tracking at generational lows, households are paying a proportionally higher share of interest than they have in many years.

CK_004.png

 

With housing values falling and expected to keep falling, the ratio of assets to disposable incomes is likely to fall over the coming quarters. Although most households will likely remain in a position whereby the value of their assets is significantly higher than their debt, no doubt an increasing number of recent property purchasers will have higher levels of debt than the value of their asset. This is probably an area of most concern for the RBA. If this leads to reduced consumer expenditure an in-turn slower economic growth it may be a trigger for either lower official interest rates or changes to mortgage lending policies (or both). Furthermore, with household debt at record highs and households dedicating more of their income to servicing their debt at a time when interest rates are so low if household debt levels haven’t declined by the time interest rates rise it could create more challenges for households.

This data will be very important to focus on over the coming quarters.

Linda and Carlos Proudly present 12 Page Street, North Lakes.  4 bedroom 2 bathroom 2LU.  #property #management since #brand #new #1999 Near New Curtains and Carpets #Freshwater Stage #School #Catchment #Westfield #Costco #Bunnings #parks #local #amenities $370 per week #available 18th April Call 07 3263 6085 to Inspect.  Located in the Freshwater Estate of North Lakes and easy walk to Lake Eden and Westfield’s shopping centre in the heart of North Lakes this Cozy 4 bedroom property features:

 

  • Open Planed kitchen/ dining and family area with ceiling fans and access to the backyard.
  • 4 Carpeted bedrooms with built-ins and ceiling fans.
  • Master bedroom has a Walk in robe and Ensuite.
  • Main bathroom with separate bath and Toilet.
  • Double lock up Garage with internal laundry.

***** NEAR NEW CARPET AND CURTAINS*****

 

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Linda 姬琳达珍 and Carlos Debello (LREA)

琳达姬琳达珍Debello LREA – LJ Gilland Real Estate Pty Ltd

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Pets vs No Pets at your rental property

Tips for landlords renting to pet owners

Pet-friendly properties will appeal to more tenants and can achieve higher rents, but there’s more to consider than just the rental return.

  • Choose the right property and features – An apartment with a large outdoor area or a house with a big backyard will appeal more to pet owners. Durable flooring such as tiles is less likely to be damaged than polished floorboards or carpets.
  • Have a pet renting policy  Stipulate the number of pets allowed, acceptable animals or breeds, and any size limits.
  • Ask for a pet resume – Tenant are often happy to supply references from previous landlords or property managers. You may also wish to meet the pet beforehand.
  • Investigate strata bylaws – Some complexes may not allow animals, while others have rules about the type or size of pet and may require residents to register pets or ask for permission first.
  • Check your landlord insurance  Tenants are generally liable for damage caused by pets, apart from reasonable wear and tear, but it’s wise to check your insurance policy as well to find out exactly what is and isn’t covered.
  • Claim repairs at tax time  The cost of repairing reasonable wear and tear, such as refinishing floors and repainting walls, can be deducted from your rental income to minimise your tax bill.

Landlords who allow pets could boost their rental return by up to 30 per cent

Investors are always looking for ways to increase their rental return, but there’s one strategy that can boost rents by up to 30 per cent and it doesn’t involve renovating. 

In almost every capital city, median asking rents for pet-friendly apartments are higher than for homes that don’t allow pets, according to Domain Group data.That means landlords who allow pets could boost their rental return by simply checking a box.

Apartments advertised as pet-friendly are rarest in Melbourne, representing less than 3 per cent of all rentals, followed by Adelaide (6 per cent) and Sydney and Canberra (both 7 per cent).

Houses are more likely to be pet-friendly, but the proportion is still low in Melbourne (9 per cent) and Sydney (21 per cent). On the other hand, more than half of Greater Brisbane rental houses allow pets, while in Darwin, more than two-thirds are pet-friendly.

Sydney investors have the most to gain by allowing pets, according to the analysis of rental listings from the March 2019 quarter. Asking rents for apartments that allow pets are 11 per cent higher than those that don’t, which equates to $60 each week or $3120 per year.

With landlords in Sydney facing tougher competition as the rising supply of rental properties pushes down rents, allowing pets could provide investors with a point of difference and minimise the time a property remains on the rental market.

Sydney property manager and Property North Agency director Ben Benny said he always encouraged landlords to consider allowing pets to improve returns.

Related: How to prepare your home for a pet

“We definitely see an increase in rents when properties are pet-friendly,” he said. “Hands down it’s the biggest inquiry we get for any property.”

In Melbourne and Darwin, rents for pet-friendly units are 8 per cent higher, and in Adelaide and Brisbane there’s a 5 per cent difference in price.

Premium highest for rare rentals

In areas where pet-friendly rentals are least common, the premium is often higher. 

Less than 3 per cent of apartments in Sydney’s Canterbury-Bankstown area were advertised as pet friendly, but rents were 26 per cent higher, with landlords pocketing an extra $105 per week or $5460 per year. 

In the Liverpool and Fairfield areas, only one per cent of apartments are pet-friendly, and are advertised for 18 per cent more, costing tenants an extra $60 each week or $3120 per year.

It’s a similar situation in Melbourne’s inner city, where less than one per cent of units allow pets and rents are 30 per cent higher. That trend continues among apartments in the inner east, northern suburbs and bayside areas.

Although few rentals in Melbourne were advertised as pet-friendly, Lucas Real Estate senior property manager Emma Racky said this was relatively normal, and pets were often allowed on a case-by-case basis.

“People won’t be deterred from applying just because it doesn’t specifically say it’s pet-friendly,” she said. “It just depends on the owner’s preference. Some aren’t too fussed, but if it’s a new property, they’re worried about damage.” 

Restrictive landlords limit their tenant pool

In Brisbane, where pet-friendly rentals are much more common because tenants considered them part of the family.

In Brisbane, you reduce the pool of tenants if you say it’s not pet-friendly.

I love to give out a property which is pet-friendly because I know I’ll have a bigger pool of people coming through and the take-up is much faster.” In Sydney, the northern beaches has one of the highest concentrations of pet-friendly houses. More than one-third of rental houses are pet-friendly, and landlords who allow pets can expect rents to be 17 per cent higher.

Pet ownership is common among families renting houses there as trends were changing.

Over the past two or three years we’ve seen more of a shift towards younger couples, finding it more common for two-bedroom apartments.

Although property damage is a concern for many landlords, it was not the only issue. For strata buildings and apartments, the biggest concern is noise and upsetting other neighbors.

 

 

 

NO PETS

Allowing no pets at all will potentially reduce the pool of tenants who will want to rent your property.

On the upside though, having no pets obviously means there will be less wear and tear on the property in terms of damage to the property and potentially, odours in the property.

In our experience, around eight times out of ten the tenant will ask for a pet. It’s a common thing that happens throughout a tenancy.

PETS

At the start of a tenancy when being advertised, we always ask owners to consider listing a property as ‘pets upon application’ (this does not mean pets are a definite ‘yes’, it means that each application will be considered on its merits and each pet considered). Ultimately it is the owner’s decision on whether to allow pets.  The benefits of allowing pets is that it will open up your property to a much larger potential tenant pool, possibly decreasing vacancy time. The reality is the most pets and pet owners are not an issue, however, not all pets are created equal! Having a ‘pets on application’ approach coupled with a signed agreement from the tenant is a good step in providing the right to ‘veto’ any pets you do not consider appropriate and safeguarding your investment.

Over 85% of our properties are pet friendly, meaning we have more tenants looking at our properties and we have less vacancy.

According to Domain, owners who considered pets can also boost their rent returns by up to 30%!

In a nation where pets are family, great tenants with a pet can be worth their weight in gold. They tend to pay rent on time, look after the property really well and they stay for 2 to 3 years!

Everyone wins 🐶 🐱 🐦 🐰 🐟

https://www.domain.com.au/advice/landlords-who-allow-pets-could-boost-their-rental-return-by-up-to-30-per-cent-833532/

 

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Adapting to Real Estate’s Changing Markets

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Ten Reasons You Need A Professional Property Manager?

Managing a property, how hard could it really be? I’m sure many investors have thought this at one time or another. If you have great tenants and they look after the property and pay their rent every week this may be the case, but if things go pear shaped that’s a whole new ball game.

There are so many reasons you need a professional to manage your property, I like to use the analogy if your car broke down would you try and fix it yourself? Or would you take it to a mechanic? Same goes for property management, renting a property is governed by a legal minefield of legislation which the average landlord just doesn’t have the time to master.

So here are our top ten reasons you should use a professional property manager:

1. Understanding laws and legislation: a professional property manager is across the latest laws and legislation and keeps up to date with changes as they happen. With a growing trend towards litigation, a professional property manager will be able to keep a landlord updated on any potential legal issues and address them as they arise. For example not fixing a maintenance issue that could potentially provide personal injury to a tenant, is just one example in a growing number of cases. This ultimately provides peace of mind for an investor.

2. Market advice: A property manager will be able to give an independent assessment of the achievable rent for a property. Many first time investors who aren’t locally based will tend to overestimate the weekly rent they should charge resulting in lost income through a high vacancy period.

3. Tenant selection: without relevant background checks on potential tenants landlord’s are at risk of enduring a tenancy with a ‘blacklisted’ tenant. This usually results in a lot of work, heartache and ultimately loss of rent. A qualified tenant with diligent reference checks will pay rent on time and look after the property. Some of the background information on tenants is exclusive to an agency.

4.  Viewing the property: showing prospective tenants through a property takes time. Sometimes this may be weekends or after hours, and really if you want to secure a good tenant you need to be available to show them the property. For a private landlord with restrictions on time, this may result in the property being vacant for longer.

5. Marketing: A property manager has access to the best websites to promote and advertise your property, this is where 95% of enquiry for rentals comes from. They also have other potential tenants at hand, who may have missed out on a similar property.

6. Paperwork: a property manager will ensure all the correct paperwork is signed with all parties rights and responsibilities clearly outlined. It is easy to miss parts or sections, giving tenants an easy out clause to a binding agreement.

7. Tenant retention: keeping a good tenant is crucial to a good investment strategy. A property manager is able to foster a relationship with tenants, ensure things like maintenance is addressed in a timely manner and that communication is prompt. One of the main reasons tenants leave is due to poor service, this increases vacancy periods and reduces rental return.

8. Maintenance issues: a professional property manager will conduct regular property inspections, generally up to four times a year, and make sure a property is being well maintained and address it promptly if that is not the case. Maintaining the value of the investment is key for investors.

9. Vacating a property: problems can often arise when the tenant wants to vacate a property. Sometimes they fail to give correct notice or want to terminate for no legitimate reason. A property manager job is to make sure the agreement is terminated correctly and the tenant leaves the property in the same condition it was in when they rented it.

10. Professional relationship: the relationship between a tenant and a property manager should be professional. When a private landlord develops a friendship with their tenants all sort sof boundaries get crossed and it is difficult to navigate should it turn pear shaped. By strictly maintaining a business relationship the investor is much more likely to benefit financially.

At the end of the day, a professional property manager can save you a whole lot of time and stress. Property managers take care of dealing with the nitty gritty of managing your investment, ultimately freeing up your time to continue to build your portfolio.urvey finds Landlords are better protected using a Property Manager

The DIY approach to property management might be tempting – but a new study of 500 landlords shows they are more likely to turn a profit if they have a professional property manager.

The BDRC Jones Donald Australian Private Property Investor Study found 46 per cent of landlords with professional property management were making profits, compared to 34 per cent for those who self-managed.

The study also revealed that landlords who used professional property managers were less likely to be exposed to major costs from bad tenants and law suits.

Eight of ten landlords using professional property managers had the peace of mind of being protected by landlord insurance. For self-managing landlords, that fell to less than half.

General Manager, RentCover, Sharon Fox-Slater, said an asset worth hundreds of thousands of dollars should be both professionally managed and protected with insurance.

“On these figures, the landlords who are the most successful at making money are also those professional enough to take out the insurance they need,” she said.

“It’s also worth taking the time to fully compare what various policies offer. A lot of people spend more time choosing a flat screen TV than researching their options with insurance.”

“Landlord policies are not all alike and don’t all cover the same things and certainly don’t all have the same service if you need to make a claim.”

The survey found:

• More than 77 per cent of landlords involve a property manager in some aspect of their property management, with more than half handing full management to professionals.

• Only one in 20 – six per cent – make enough money from property to give up their day jobs.

• More than three quarters feel “positive about being a landlord” and one in five plan to buy property in the next year to 18 months.

• More than a quarter (28 per cent) of landlords intend to raise rents on their properties in the next six months.

The full survey of 500 landlords is available for purchase from the market research firm at http://www.bdrcjonesdonald.com.au.

Best regards,

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Queensland’s newest university campus set to open north of Brisbane..!!

Queensland’s newest university campus set to open north of Brisbane..!!

Queensland’s newest university campus is open for O-Week at Petrie, north of Brisbane, and its 1200 inaugural students will attend their first classes from Monday.

There is such pent-up education demand in the fast-growing Moreton Bay region, the University of the Sunshine Coast expects the number of students to triple within three years.

The university’s chief operating officer, Scott Snyder said he expected enrolments to reach 10,000 before too long.

Dr Snyder said regional unversities needed catchment areas of about 1 million residents to be viable.

The University of the Sunshine Coast has campuses at Sippy Downs, Caboolture, Gympie and won the public tender in late 2015 to operate the latest university campus at Petrie.

In this combined Sunshine Coast and Moreton Bay catchment is the 1 million residents needed to keep the campus operating.

Most students come from local schools and fewer than 24 are international students.

University of Sunshine Coast’s brief is to address the problem of Moreton Bay students travelling more than three hours to get to university classes and the very low rate of university participation.

USC’s Moreton Bay campus sits right beside the Petrie train station, giving perfect access to a population of 450,000 residents eager to get to a full university.

Dr Snyder puts it this way: “I just think it was easier for universities to work in the metropolitan setting.”

“More than 53 per cent of young adults in Brisbane have a degree. When you cross the Pine River it drops to 24 per cent,” he said.

“By the time you reach Caboolture it reaches 13 per cent. That was why the Commonwealth government supported the project.”

Dr Snyder said all sides of politics supported the new university campus because the need was obvious.

Local federal MP Peter Dutton helped the fledgling university campus get federal cabinet support, Moreton Bay Regional Council acquired the old Petrie paper mill site in 2015, while the Queensland government provided state government land for the first actual university building in a land swap while part of the old Petrie paper mill site was remediated.

While the Petrie paper mill stopped operating in 2013, waste-water treatment continued on the site after it was acquired by Moreton Bay Regional Council in 2015.

Queensland’s Department of Environment detected PFAS chemicals flowing into the North Pine Dam and fined the operators, Orana, in 2017.

A subsequent Environment Department human ecological assessment found the low levels of PFAS “indicated that there was no unacceptable health risk for people on the site or nearby”.

Next week, 1200 students will begin their choice in 50 degree programs within business, teaching, nursing, engineering, robotics, “mecha-tronics” environmental science, computer science, communications and psychology.

For the first years, USC Petrie will operate as “a university under one roof”.

The sole building on the site has 50 rooms for students to be taught, ranging from small consulting rooms to larger collaborative workshops where engineering students can share their ideas on large screens, with a larger screen at the front of the “classroom”.

Life drawing classes are held in one of the few classrooms without windows, within the creative industries strand.

There is a traditional auditorium with 460 seats, while upstairs on level two is a 120-seat medical laboratory, simulation hospital wards for nursing students and an engineering teaching space.

Here is a change for the environmentally friendly era.

You cannot buy bottled water on this campus. Instead students are encouraged to use a number of self-filling water stations, which tell you how many plastic bottles you had not sent to landfill – 894 plastic bottles were saved by the time I had a drink.

The train station is 100 metres from the campus front door and there is a 24-hour campus security office right at the front door.

Thankfully the campus contains one thing that will never change at modern universities: 24-hour computer access room for students who need to submit assignments right on deadline.

SOURCE : https://www.brisbanetimes.com.au/national/queensland/queensland-s-newest-university-campus-set-to-open-north-of-brisbane-20200217-p541nr.html

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Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available

House prices may be on the increase, but that has not quenched the desire of first home buyers to get into the property market.

According to ME’s fourth Quarterly Property Sentiment Report first homebuyers’ hopes of breaking into the market have jumped dramatically, with half (51%) of first home buyers planning to buy property in the next 12 months, compared to 38% in Q2 2019.

The report performed a survey of 1,000 Australians in the property market – conducted in January, Q1 2020.

At a glance:

  • Positive first homebuyer’s sentiment jumped to 51%  from 38%
  • Property market sentiment increased to net positive 21% up from 7%
  • Ninety-two percent of respondents agree that housing affordability is a big issue in Australia

“Rising property prices carry the risk of squeezing first-home buyers out of the market, however, they also signal a healthier market that presents a worthwhile long-term investment,” said ME’s General Manager Andrew Bartolo.

“In the case of first home buyers, the recent property price recovery has likely nudged them to get in while they can – as though it’s ‘now or never’ – and has created a sense of FOMO (Fear of missing out).

“Low-interest rates and commentary in the market for the support of first home buyers may have also contributed to an increase in home-buying intentions.”

Recent property prices across Australia’s key property markets aren’t expected to halt any time soon, according to Aussies in the property market.

Source: ME Bank

Over half (55%) of respondents predict prices to rise over the next 12 months – a massive jump from the mere 38% who predicted price rises in Q3 2019 when the market first began to turn.

Strong house value growth is predicted by Victorians more than any other state; with 67% of Victorian respondents predicting prices to go up – a 10 percentage point jump from last quarter’s prediction, and a 34 percentage point jump from their Q2 2019 prediction.

All other major cities had a more positive outlook on prices than last quarter, including WA where last quarter more was predicting price falls than rises.

Positive house price expectations were seen across owner-occupiers, first home buyers and investors.

The report shows sentiment towards the property market has improved for the third quarter in a row, increasing to net positive 21% (up 3 percentage points from Q4 2019, and up 14 percentage points from Q2 2019 when the report first started).

“Considering a combination of market factors including the buzz of home value growth, a solid spring selling season, plus rate cuts and signs from the RBA that rates will stay lower for longer, it’s no surprise overall property sentiment has improved,” said Mr Bartolo.

Investor optimism has dipped slightly and is now on par with that of owner-occupiers, as rising prices present a potential barrier to this cohort.

ME’s report revealed price positivity and overall market sentiment isn’t flowing through to spending habits.

Recent property price movements have negatively impacted ‘willingness to spend on discretionary items’ for another quarter in a row.

It remains the only area of personal finances that has stayed net negatively impacted – sliding deeper from net negative 3% to net negative 8% over the past quarter.

All other areas of personal finances analyzed such as a sense of wealth, financial confidence, savings behavior and debt situation, remain net positively impacted by recent price movements.

“Despite market positivity and a stronger sense of wealth, there’s less willingness to spend on discretionary items – a trend that bucks the wealth effect theory.

“Much broader economic dynamics are obviously at play,” said Mr Bartolo.

Growing optimism over the past quarter has eased most financial worries, but housing affordability still tops the list.

Ninety-two percent of respondents agree that ‘housing affordability is a big issue in Australia’, up from 89% in Q4 2019.

ME’s report explored the level of personal worry towards affordability, as well as acknowledgment of the issue, for the first time and found net 14% agree with the statement ‘I’m worried about property becoming unaffordable’ – making it the top worry.

All other perceived worries in ME’s report have eased to the lowest point since the survey began in Q2 2019.

Tight credit policies are becoming less of a concern with only net 6% agreeing it’s a worry (down from net agree 16% last quarter).

Concern over negative equity has dropped dramatically to net disagree 34% (from net disagree 12% last quarter), likewise, worry about being forced to switch to interest-only payments also slid to net disagree 30% (from net disagree 12% last quarter).

The report also tracked the perception of choice in the property market and found almost half (46%) of total respondents believe there is not enough choice, with this figure jumping to 57% among first home buyers.

“Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available,” said Mr Bartolo.

“With so many first home buyers planning to buy in 2020, yet most stating choice in the market is a barrier, addressing this issue should be a focus in the year ahead.”

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Linda 姬琳达珍 and Carlos Debello (LREA)

LJ Gilland Real Estate Pty Ltd

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Pain and gain Jan 2020

Almost nine in ten (87.4 per cent) property resales over the September 2019 quarter sold for more than their previous price, delivering a gross profit of $18.7 billion for resellers across Australia. 

The findings come from the latest CoreLogic Pain and Gain report (using sales in the September 2019 quarter), which analyses the performance of property resales across the nation. The report reveals a slight increase in profitable resales (0.1 per cent) compared to the previous quarter, while gross profits increased by $2.4bn over the same period (resales totalled $16.3bn in June 2019).  

Overall, Hobart sellers were most likely to experience gains with 98.1 per cent of properties selling for a profit over the three months to September 2019. A high proportion of resales in regional Victoria (96.6 per cent) and regional Tasmania (96.4 per cent) also delivered positive returns for sellers. 

CoreLogic head of residential research Eliza Owen said, “Hobart has experienced particularly large capital gains over the past five years and this has translated into exceptionally strong results for resellers of both houses and apartments during the past quarter.”
The strong housing market in Hobart and regional Tasmania has also helped investor owners, who are more likely to sell at a loss than owner-occupiers, to buck the trend and enjoy greater gains than in these regions.

“When it comes to generating a profit for the seller, owner-occupied properties have outperformed investment properties in all markets except for Hobart and Regional Tasmania. Over the September 2019 quarter, 98.8 per cent of investment properties resold in Hobart were profitable compared to 98.0 per cent of owner-occupied dwellings,” Eliza Owen said.

Nationally, 88.9 per cent of owner-occupied properties resold for a profit compared to 83.4 per cent of investor-owner properties.
Overall, house resellers were more likely than unit sellers to experience gains. Nine in ten (90 per cent) houses across Australia sold for more than their previous purchase price compared to 80.2 per cent of apartments. The disparity was greatest in Brisbane and Canberra, where units were 6.8 times and 6.7 times more likely to sell for a loss than houses. 

Eliza Owen said, “In recent years, there has been a relatively high level of newly constructed apartments in state capitals, especially across Brisbane and the ACT. This oversupply, which contributes to lower prices and higher vacancies, has impacted returns for unit resellers.” 

During the September quarter, regional markets outperformed capital cities, with sellers making a profit from 88.0 per cent of regional resales compared to 87.1 per cent of resales across the state capitals. 

There were also $764.8 million in gross losses over the quarter generated from 12.6 per cent of property resales nationally. Sellers in Darwin experienced the greatest pain with just over half (51.7 per cent) of properties reselling for a gross profit followed by regional Western Australia (56.9 per cent) and Perth (63.6 per cent).  

The housing markets in Perth and Darwin have been trending downward over the past half a decade meaning property owners need to hold their dwelling for longer if they want to increase their chances of making a profit. 

Across the capital cities, the median hold periods for profitable house sales were highest in Perth (13.1 years) and Darwin (13.5 years) and lowest in Hobart (9.2 years) and Sydney (9.5 years). 

Key findings for September 2019 quarter – national 

  • 87.4 per cent of properties across the nation sold for a profit in the September 2019 quarter. Across the combined capital and regional markets, a higher proportion of houses (90.0 per cent) resold at a profit than units (80.2 per cent). 
  • Hobart leads the market with 98.1 per cent of homes resold turning a gross profit, followed by regional Victoria (96.6 per cent) and regional Tasmania (96.4 per cent).
  • Hobart also recorded the highest gains for both houses and apartments with 98.0 per cent of house resales and 98.5 per cent of apartment resales profitable. Regional Victoria and the ACT delivered the strongest results for house resellers with 96.9 per cent of houses in these areas reselling for a profit. The greatest gains for apartment resellers were across the rest of Tasmania (96.3 per cent) and the rest of Victoria (94.2 per cent). 
  • The greatest losses for houses were recorded in Regional WA and Darwin, where 41.0 per cent and 39.0 per cent sold at a loss, followed by Perth (32.9 per cent). For units, the greatest pain was in regional WA and Darwin, where 63.7 per cent and 61.8 per cent of apartment resales were at a loss respectively.  
  • Nationally, investors were more likely to resell at a loss compared to owner-occupiers. 11.1 per cent of owner-occupied properties in Australia resold at a loss compared to 16.6 per cent of investment properties. 
  • Throughout the combined capitals, 11.1 per cent of owner-occupiers failed to resell their property for a profit compared to 17.2 per cent of investor-owned properties. The difference was greatest in Canberra, where 5.2 per cent of owner-occupied properties resold for a loss compared to 24.9 per cent of investment properties. 
  • Nationally, profitable resales were held for a median of 9.5 years while loss-making resales had a median hold period of 6.0 years. 

Key findings – regional 

  • Across the major coastal markets, Geelong reported the highest proportion of profit making resales over the September 2019 quarter (98.8 per cent). Resale losses were the greatest in Bunbury (37.5 per cent) and Cairns (23.3 per cent).
  • In the non-coastal regions, the highest proportion of profit making resales were in Ballarat (98.6 per cent) and Bendigo (96.8 per cent) while the highest proportion of loss making resales were in Queensland’s Toowoomba region (12.7 per cent) and the New England & North West region of New South Wales (11.5 per cent).  

Sydney

  • In Sydney, 90.2 per cent of dwelling resales were profitable over the September quarter. This was up from 89.1 per cent in the June quarter but down from 94.5 per cent a year ago. 
  • Mosman resellers experienced the highest gains with 98.6 per cent of all homes resold at a gross profit. This was followed by Waverley (96.3 per cent) and Hunters Hill (95.5 per cent).  
  • The lowest proportion of profit making resales was recorded in Parramatta where 81.5 per cent of all resales turned a profit, followed by Canterbury-Bankstown (81.7 per cent) and Strathfield (83.7 per cent).

Melbourne

  • 93.0 per cent of Melbourne properties resold for a gross profit over the September quarter. This is up from 92.2 per cent in the June quarter but down from 95.2 per cent a year ago.
  • Macedon Ranges recorded the highest proportion of profit making resales with 100 per cent of all homes resold incurring a gross profit, followed by Moorabool (98.9 per cent) and Melton (98.3 per cent).  
  • The lowest proportion of profit making resales was in the Melbourne council area (67.1 per cent). Next were Stonnington (79.1 per cent) and Port Phillip (84.5%).

Brisbane

  • 87.9 per cent of Brisbane resales recorded a gross profit over the September quarter, up from 87.2 per cent over the June quarter. This was down from 90.8 per cent over the same period last year.  
  • Only 63.5 per cent of unit resales made a gross profit over the quarter compared to 94.6 per cent of houses. 
  • The Scenic Rim experienced the greatest gains, with 93.6 per cent of properties reselling at a gross profit. The next most profitable areas were Moreton Bay (90.8 per cent) and Redland (90.4 per cent). 
  • The lowest proportion of profit making resales was recorded across the Lockyer Valley council, with 82.9 per cent of resales turning a gross profit, followed by Brisbane council area (86.1 per cent) and Somerset (87.5 per cent).

Adelaide

  • 89.2 per cent of resales across Adelaide were sold for a gross profit over the September quarter, down from 91.8 per cent over the June quarter. 
  • 92.4 per cent of Adelaide house resales sold for a profit and 76.4 per cent of unit resales were profitable.
  • The highest proportion of profit making resales was recorded in the Adelaide Hills (96.6 per cent of dwellings were profitable), followed by Mitcham (94.3 per cent). 
  • Adelaide council area had the lowest proportion of profit making resales with 70.2 per cent of dwellings resold at a gross profit. 

 Perth

  • 63.6 per cent of Perth dwelling resales turned a gross profit over the September quarter (up from 63.3 per cent in June). A year ago, 68.8 per cent of homes in Perth resold at a gross profit. 
  • 67.1 per cent of houses were resold at a profit compared with 48.0 per cent of units. 
  • 81.8 per cent of resales turned a profit in Claremont, followed by Cottesloe (81.3%).
  • The lowest proportion of profit making resales were recorded in Perth council area (32.3 per cent) followed by Belmont (52.8 per cent) and Mandurah (56.7 per cent).  

Hobart

  • Hobart had the highest proportion of profitable resales, with 98.1 per cent of all resales over the September quarter recording a gross profit.  
  • 98.5 per cent of units turned a gross profit over the quarter compared with 98.0 per cent of houses.
  • Three areas recorded 100 per cent of resales at a gross profit:  Brighton, Derwent Valley and Glenorchy.  The lowest proportion of profit making resales was in Hobart council, where 95.7 per cent of properties resold at a gross profit.  

 Darwin

  • Profit making resales in Darwin tracked at 51.7 per cent over the September quarter (up from 50.4 per cent of resales in June).  
  • The unit sector has shown a larger proportion of loss making resales, with 61.8 per cent of resales compared with 39.0 per cent of houses 

Canberra

  • In Canberra, 89.3 per cent of properties sold for more than their original purchase price in the September quarter 2019. 
  • 78.9 per cent of resales recorded a gross profit compared with 96.9 per cent of house sales.  
     
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