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Oct 28, 2020
Christmas buying rush on homes
Australia’s leading real estate coach and trainer Tom Panos believes a series of post-recession factors have come together to create very fertile ground for buyers and sellers in our real estate market. However there are a couple of conditions. 1. Houses are hot but units are not “Because of the clarity a lot of people have had during the pandemic, demand for houses is as strong as it has ever been,” Mr Panos said. “People who want to make a move, want something bigger. They want that backyard. If the last six months have taught us anything it is that space matters.” 2. Loosening of lending criteria is needed “There appears to be no shortage of appetite for real estate,” Mr Panos said. “The key drivers here are the cost of money and its availability. Treasurer Josh Frydenberg has indicated that in the near future there will be a loosening of lending criteria. And in doing so he has basically said to the market place, the money is out there, it’s cheap so get buying if the price is right for you.” Christmas buying rush, and beyond Stubbornly resilient home prices have forced some of the market’s biggest bears to change their point of view. AMP’s Shane Oliver who feared greatly for the impact the pandemic would have on Australian housing is now talking of a “spring bounce”. SQM Founder Louis Christopher is another who has regained his faith in the market. As have many home buyers. According to Westpac's 'time to buy a dwelling index', confidence in the housing market has boomed to its highest level since September 2019. “The harshest critics have basically retreated saying the decline will not be as steep as we thought,” Mr Panos said. “The high clearance rates, (72 percent last weekend according to CoreLogic) continue to surprise the pundits out there. I have a feeling the market will keep on powering right through to Christmas Day. The lost sales period that NSW had during lockdown will likely ensure that. With international travel off the cards. A lot of agents won’t have their traditional four week break. It will just be two weeks and then they will launch into the new year.” Patchy sales patterns However not all homes are being keenly fought over by eager buyers. There are spots of bother in the market. “It’s becoming obvious there is a patchiness out there,” Mr Panos said. “Properties that tick all the boxes are selling well. However those with a few crosses against them aren’t. There are far more people out there now willing to borrow extra funds to get exactly what they want.” In some markets properties with marks against them might include those that need a lot of maintenance or refurbishment or renovation, those with limited outdoor space or even those on a busy main road. Victoria could hit huge milestone “There has been so much repressed action in Victoria that now they have opened up and will continue to do so, that pent up activity could really explode,” Mr Panos said. “Over the weekend I did a live chat on my Facebook page with the President of Real Estate Institute of Victoria Leah Calnan and she said they might hit 1000 auctions on a weekend in the coming weeks. “However the concern is that we might see an oversupply of homes come onto the market very quickly and that is never a good sign. “The bottom line is that those people who have had their employment affected most by COVID are not necessarily the people who would be buying real estate. Generally it is the guy or girl doing a few shifts at a pub in Newtown who have lost their job. Those people who are in a share house in Newton, not those looking to buy a $1.5 million home.” First home buyers are flying Treasurer Fydenberg’s Federal Budget was a spend-friendly one in regards to stimulating the economy out of the coronavirus trough. And it come with further incentives for first home buyers via the First Home Loan Deposit Scheme. “The Budget wasn’t overly positive or overly negative for real estate,” Mr Panos said. “However one thing you can’t deny is that it has impacted the behaviour. First home buyers are flying. There are so many in the market looking for that first home. “One thing first home buyers are always lining up is the comparison of renting versus buying and if you do the maths at the moment, buying does look very good.” Originally published as Christmas buying rush on homes.
Oct 28, 2020
Change of house mates or property manager/owner Change of tenants and bond arrangements
When tenants change and the rental bond arrangements change during a tenancy a Change of bond contributors (Form 6) must be sent to the RTA. Everyone must sign this form, including the property manager/owner. The tenant/s leaving will also need to get their share of the bond from the tenant/s moving in or those remaining. The RTA needs an accurate record of who has contributed to the bond to ensure the refund process goes smoothly at the end of a tenancy. If there is a bond loan involved, the tenant/s must contact the Department of Housing and Public Works to approve the change before sending the form to the RTA. Change of property manager/owner If the property manager/owner changes during the tenancy, they must notify the RTA using a Change of property manager/owner (Form 5). This form should be signed by the old and new property manager/owner. A copy should be sent to the RTA and to the tenant. The tenant should make arrangements to pay rent to the new property manager/owner.
Oct 28, 2020
A case for making your rental property feel like your dream home
There wasn’t really a pivotal “Aha” moment, more a slow dawning that after 20-odd years of living in rental properties, it was time to finally make my temporary house feel like home. And by that, I mean I bought myself a brand-new fridge, despite the fact that it might not fit into the specifics of the forever kitchen I’ll eventually have. I got permission from my real estate agent to paint my bedroom white to match the rest of the house instead of enduring the inexplicable purple and green walls that I hated every time I walked into the room. I lovingly worked on my garden, bought and framed art and hung printed photos of my children instead of Blu-Tacking them to the old crappy fridge. I splashed out on a couple of great rugs, a coffee table and fancy bed linen. It was time to stop living in this state of impermanence. [caption id="attachment_8392106" align="alignnone" width="1024"] Little additions make a big difference. Photo: Stocksy[/caption] The renter’s mindset Renters now make up 32 per cent of Australian households, according to the Australian Bureau of Statistics, so maybe you know what I mean. When you first start out renting, things like grey walls or a bargain-basement couch don’t bug you too much. However, whether out of life circumstances, choice, or unaffordable property prices, many of us are “still” renting in our 30s, 40s, 50s and beyond (other people’s judgment, not mine) and, well, I’ve realised that we don’t need to hold off on beautiful aesthetics for an arbitrary point somewhere in the future. There were definitely a few mental obstacles to unpack first: what’s the point of wasting money on frivolous house stuff when I’m trying to save to buy my own place? Isn’t it materialistic to feel that cosy rugs, or that hallway peg shelf I have in my basket on Etsy, will make me happy? Also, what if I hate the new coffee table by the time I purchase my forever home? At some point during 2020 I realised that this mindset wasn’t serving me. Did I really believe that only people who can afford to buy their own place deserve to live in a beautiful space? Interior designers, architects and the good people at IKEA all agree that our space has a very real impact on how we feel. And I want to feel cosy, dammit. [caption id="attachment_8392107" align="alignnone" width="1024"] Don’t wait for your dream home to make your surrounds dreamy. Photo: Stocksy[/caption] Home sweet home I finally hedged into grown-up living by splashing out on a brand-new fridge and washing machine after years of second-hand Gumtree ones that always felt temporary. Yes, I deserve them. Then it became a whole project as I worked through each room selling unused things on eBay (air-fryer, kids’ toys) and using the money to buy that circular jute rug I’ve been coveting for my living room and black Kmart frames to hang some prints that have sat rolled up in cardboard tubes for years. And on it went. Other easy ways I found to create more beauty: hanging plants in your windowsills, oversized floor plants, and getting permission from your landlord to paint walls, hang up shelves, get brand new blinds. And using mirrors, dim lighting, colourful bunting and floor lamps to create a mood. Think of it as teaching yourself basic interior design while collecting quality items for your forever space. [caption id="attachment_8392108" align="alignnone" width="1024"] Plants are a quick and effective update. Photo: Stocksy[/caption] Now it’s almost done, I’m not saying that my rental home is going to be featured on a “9 of the most beautiful rental home makeovers” article any time soon. My house backs directly on to bush and, as a result, I’ve battled rats, mosquitoes, and mice, there is termite damage and I still hate the bathroom. But the good thing is that none of this is really my problem. That’s the joy of renting, you can have all of the fun of practising playing house and pass the bigger, costlier issues on to someone else.
Oct 20, 2020
A guide to getting your outdoor area ready for summer
While the beach and day trips down the coast offer a supreme taste of summer, you can experience the same joys at home by sprucing up your outdoor area ahead of the warmer months arriving. Landscape designer Penny Starr of Penny Starr Design says one of the simplest and low-maintenance ways to prep your garden for summer is to add fresh mulch to your plants. “Mulch helps suppress weeds, retain moisture in the soil while also keeping it cool, and will make your garden look neater,” she says. [caption id="attachment_8392073" align="alignnone" width="1024"] Penny Starr recommends replacing mulch every 12 to 18 months. Penny Starr Designs garden in Rosanna, Melbourne. Photo: Caitlin Mills[/caption] Starr prefers to use organic mulch in her garden designs, as when it breaks down it adds organic matter and nutrients to the soil. When incorporating the mulch to your garden she says, “Make sure the area is weeded, then wet the soil first and apply the mulch at 75-millimetre depth, there’s no need to dig it in like you would if adding compost.” Starr recommends replacing with fresh mulch every 12 to 18 months. Home gardener Genevieve Kulesza comes from a long line of gardeners and takes great pride in her Collingwood garden, which she is mid-DIY renovating ahead of summer. “I think starting small and focusing on one area at a time can really help when gardening,” she says. Kulesza’s personal rule when gardening is to “plant what you want to eat, see and smell”. It’s a system that’s worked for her, where she’s integrated gardenias for fragrance, a Japanese maple for shade and a variety of herbs. “I tend to plant a lot of herbs because they grow really quickly and transition nicely from a summer salad to a cocktail garnish.” [caption id="attachment_8392074" align="alignnone" width="1024"] For more bang for your buck, opt for furniture that has indoor-outdoor applications and is weather-tolerant. Photo: Marshall White[/caption] If you’re looking to add some al fresco vibes to your outdoor area, whether that be a backyard or apartment balcony, Starr wants you to think about how you intend to use it first. “Do you want to just have people around for coffee and drinks or do you want to host a larger group for dinner?” she says. For smaller gatherings, Starr suggests lounge seating and a coffee table. “I think stackable furniture is also really great if you need to store it elsewhere, and I really like timber stools that can double as side tables and coffee tables,” she says. For more bang for your buck, opt for stools that have indoor-outdoor applications and are weather-tolerant, so you can move them across both living zones at your discretion. [caption id="attachment_8392075" align="alignnone" width="1023"] Throw a sprig of rosemary on the barbie: The herb’s woody scent keeps mosquitoes at bay.[/caption] Besides your guests hanging around the outdoor table, you might have a few unwanted guests hovering too: mosquitoes. To remedy this, Starr’s preferred repellents include “citronella candles or throwing a few sprigs of rosemary on the barbecue”. The herb’s woody scent keeps mosquitoes at bay. When styling her garden, Kulesza opts for clusters of pots at various sizes and heights, and even some that are hanging or affixed to the wall with cascading foliage, in odd numbers. “I think pots are especially good for renters as you can take your hard gardening work with you if you move,” she says. [caption id="attachment_8392076" align="alignnone" width="1024"] Lighting is often an afterthought when designing an outdoor living area, but it’s integral to how the space feels. Photo: Stocksy[/caption] “You can also be really inventive with what you use for pots and use lots of found objects, as long as it has drainage holes, and if it doesn’t you can drill a small hole in its base.” Kulesza also advises “heading into summer it’s better to grow in bigger pots because the smaller pots will dry out really quickly”. While we’re still in spring though, Starr suggests giving your garden a spring clean ahead of the warmer months with some maintenance. “It’s a good time to give the paved areas a wash with a high-pressure hose or sugar soap. You can even consider sealing your paving areas, which will prevent them from staining.” [caption id="attachment_8392077" align="alignnone" width="1024"] Timber decks will require regular maintenance with quality decking oil.[/caption] Timber decks require a little more maintenance. “There’s some good natural decking oils on the market and most of the application is DIY.” Integrating a lighting option into your outdoor area is also crucial for those times when afternoon drinks segues into an evening barbecue. “Outdoor lamps, floor lamps, and hanging and strand lamps are a good option and available at lots of different price points, from LED lights from hardware stores to designer pieces that can be used for both task and ambient lighting,” Starr says.
Oct 20, 2020
Outlook is everything for these new developments in Brisbane and surrounds
With homes appealing to everyone from first-home buyers to retirees, developers have designed their latest offerings to maximise some of the best views around. Bay House Overlooking the waters of Moreton Bay, Bay House is home to a boutique offering of just 30 apartments, targeted at the local downsizer and retiree market. Located on the esplanade at Redland Bay, south of Brisbane, the project will feature homes set across four levels and ranging from one bedroom to penthouses. Residents will enjoy an on-site pool, along with plenty of amenity surrounding the site, including a newly approved shopping centre for Redland Bay Village, a minute’s walk away. The fan-shaped building has been designed to maximise view corridors and cooling breezes, with several of the apartments soaking up views over the water, while others have views of the surrounding greenery. [caption id="attachment_8392066" align="alignnone" width="1024"] Bay House overlooks the waters of Moreton Bay. Photo: Carbone Developments[/caption] Standard interiors will include timber flooring, European appliances, double vanities, floor-to-ceiling bathroom tiling and custom joinery in kitchens and bathrooms, while penthouses are eligible for upgrades, including Miele appliances, square-set ceilings and custom joinery on balconies for personalised al fresco dining. Marketing and sales manager for Carbone Developments Heidi McCoullough said the developer’s experience with the downsizer demographic meant every element of Bay House had been designed to suit purchaser needs. “Having been working with this demographic for a few years now through different projects, we’ve taken on board all of the feedback of what buyers are looking for … and incorporated that into our new Bay House project,” she said. “Having the bay in front of you [on] one side, but then all of the convenience and amenity of shops and transport behind you, I think that’s a really appealing point of difference for this project.” Ms McCoullough said along with the luxury penthouse offerings, the project also provided a number of more affordable options. “We also do to the rear of the project have some really affordable, well-designed apartments for those people who love the building, who still want those really fantastic high-end finishes, but don’t want to be spending at that premium price point,” she said. Over a third of the project has been sold, and construction commenced in September with completion slated for the end of next year. Prices range from $360,000 to $1.2 million. Bay House is at 143 Esplanade, Redland Bay, Queensland. Silk One In the inner-city Brisbane suburb of Woolloongabba, this development capitalises on its proximity to sporting and cultural hub, The Gabba. Silk One offers one, two and three-bedroom apartments, with a special focus on luxury amenity. Its rooftop is home to an Australian first: a purpose-built viewing deck and entertainment area from which residents will be able to see directly into the adjacent stadium. [caption id="attachment_8392067" align="alignnone" width="1024"] Residents can see into the stadium. Photo: CBRE[/caption] The featured space, called the SkyStand, will feature a bar, binocular stands and a Vergola roof to shade from sun and rain when needed. The rooftop will also host a pool, spa, gym and barbecue area, along with other leisure and entertaining areas. Apartments will be offered with open-plan configurations and a choice of colour scheme, with spacious balconies and – for some north-facing homes on higher levels – city views. The director of CBRE Residential Projects in Brisbane, Brett Jackson, said the suburb’s eclectic charm was a selling point for the project. “It’s a winning trifecta location,” he said. “Not only is it sitting on the doorstep of the under-construction Cross River Rail project, the site is on the southern side of The Gabba, which gives the northern units the advantage of a view never to be built out, and [it’s] also just across the road from the ultra-hip Logan Road eateries.” [caption id="attachment_8392068" align="alignnone" width="1024"] City views. Photo: CBRE[/caption] Mr Jackson said demand for the project had been “overwhelming”, with many first-home buyers taking advantage of the HomeBuilder grant. “When you are offered what could be a once-in-a-lifetime $40,000 leg-up from the government, and you’re presented with a project like Silk One, it’s a pretty compelling argument to secure your first home,” he said. A range of one and two-bedroom homes remain, with prices starting at $398,000. Construction began in August and the development is expected to be move-in ready by December 2021. Silk One will be located at 825 Stanley Street, Woolloongabba, Queensland. Gallery House Comprising two stages that were both completed last year, Gallery House offers premium waterfront apartments for a range of buyers in the high-end Brisbane riverside suburb of Hamilton. With more than 300 apartments offered across both stages, the development includes one, two, three and four-bedroom homes, Skyhomes and penthouses with sought-after river frontage. It’s also closely connected to the Brisbane CBD by train, bus, CityCat and arterial roads, while surrounded by leisure and entertainment hubs including Portside Wharf, Eat Street Markets, Eagle Farm Markets and Racecourse Road. Gallery House has been designed to maximise views, with many apartments looking directly over the river and others afforded a north-facing aspect. The development features a rooftop leisure area, home to a 20-metre infinity pool and outdoor barbecue area, all with panoramic views of the river and city. Almost 90 per cent of the homes in Gallery One have been sold, and close to 85 per cent in Gallery Two; however, apartments are still available across the range. [caption id="attachment_8392069" align="alignnone" width="1024"] Many apartments look over the river. Photo: Brookfield[/caption] Managing director at TOTAL Property Group Adrian Parsons said buyers couldn’t look past the project’s enviable location. “It’s extremely rare to have developments that are sitting on the Brisbane River and Gallery House is fortunate enough to be in that position: absolute river frontage with a lot of the apartments having amazing views back to the city,” he said. “Gallery House has become a real community because you have a wide selection of apartments. You have people living in there who are first-home buyers getting onto the property ladder, buying a one-bedroom apartment from around $385,000, all the way up to penthouse buyers at $5 million.” Mr Parsons said the development offered connectivity without the downsides of inner-city living. “The location there on Portside Wharf, with its amenities, the cafes and the restaurants and the cinema, the gym, the supermarket, it offers a relaxed urban environment,” he said. “Its character is very noticeably less urban than some of the other popular apartment and mixed-use developments around the city.” Gallery House can be found at 7-11 Wharf Street, Hamilton, Queensland.
Oct 20, 2020
Brisbane's Month in Review - October 2020
Whilst the Brisbane office market is widely predicted to face challenging times ahead, money is cheap and interest rates are likely to remain at historic lows for the foreseeable future. This is one of the primary factors fuelling investor appetite at present. The biggest challenge the office market faces is the uncertainty surrounding office leasing. The work from home necessity has significantly changed the landscape for centralised office accommodation needs, with an expectation of significant potential downsizing of space requirements for many businesses over the next five years. Whilst there are no established market metrics yet, this could be as much as a 20 per cent reduction in space requirements. If so, there is potential for a sustained period of high vacancies (including sub-lease accommodation) with flow on effects to demand for new buildings and values of existing sites. Given the lack of leasing deals to date, it is still too early to say where face rents and incentive levels are sitting. Leasing agents are reporting that leasing enquiry has diminished significantly as businesses are stuck in limbo due to a lack of confidence in the local and wider economy and are unwilling to commit to long term leasing arrangements or exercise option periods until there is more certainty. There are also a number of zombie businesses that are only being held afloat by the government’s JobKeeper stimulus package. The prospect of a number of businesses closing their doors once JobKeeper ends in March 2021 will likely result in an increase in sub-lease space, higher vacancy rates and lower net absorption. A combination of these factors will inevitably see face rents decline and incentives increase. Landlords have had to adapt to this revolving door and with significant uncertainty attached, short term leasing arrangements (12 months) are becoming the norm as businesses are reluctant to lock themselves into long term rental commitments in a potentially declining rental market. Despite the prospects of turbulent leasing markets, commercial office assets are continuing to transact. Whilst sale volumes have diminished significantly, there has been no indication to suggest there is presently an oversupply. In fact, there is quite strong demand from private wealthy investors and small syndicates and property funds for suitable assets. Interest from these groups is largely for well-leased, modern offices underpinned by strong lease covenants. These assets are attracting strong bidding and are maintaining pre COVID-19 values, in some instances, achieving stronger prices and sharper yields as investors chase COVID-proof assets. A notable recent sale is the multi-tenanted commercial asset, 232 Arthur Street, Teneriffe recently sold for $4.975 million reflecting an analysed yield of 6.36% and a WALE (by income) of approximately 4.14 years. In contrast, secondary suburban investment office assets with historic vacancy and re-letting issues will be difficult to sell and yields are likely to soften. The spread between prime and secondary yields is therefore likely to widen. Owner-occupiers remain active in the CBD and fringe CBD. Value levels appear to be holding in most instances, particularly for assets that have future redevelopment prospects. Suburban commercial precincts that are well supported by infrastructure (transportation, on-site parking and food amenities) are still transacting, but demand has declined.
Oct 9, 2020
Construction commencing on 895 Ann Street commercial tower
The development is on behalf of a European real estate institutional fund managed by DWS, with the site being acquired in an off market transaction from a private investor. Practical completion of the circa $260 million development project is expected in the first quarter of 2023 with CPG appointing Queensland based building contractor, Hutchinson Builders. Designed by award winning John Wardle Architects, the project is located within close proximity of the James Street “lifestyle” precinct and will comprise almost 24 thousand square meters of net lettable space, spread across 15 levels upon completion. [caption id="attachment_8392058" align="alignnone" width="950"] Architectual rendering of 895 Ann Street, Fortitude Valley[/caption] With a striking dual frontage glass façade, the building will offer future tenants high quality, contemporary office accommodation, ground floor retail and roof-top bar, along with two levels of basement parking and end of trip facilities. The building’s environmental credentials will target a 5 Star Green Star and 5.5 Star NABERS energy rating. “We are delighted to be partnering with the Consolidated Properties Group team on this exciting project. Fortitude Valley has undergone an immense gentrification process over the past 20 years, transforming the suburb into a modern urban interconnected community that embodies the live- work-play culture,” said James Bartlett, Head of Real Estate, Australia at DWS. [caption id="attachment_8392059" align="alignnone" width="950"] Architectual rendering of 895 Ann Street, Fortitude Valley[/caption] Don O’Rorke, CEO & Chairman of CPG, said he and his team were thrilled and excited by the prospect of not only delivering another commercial office tower in the Fortitude Valley precinct, but delivering approximately 300 construction and development jobs during the process. “We are honoured to be partnering with DWS on the 895 Ann Street project and look forward to the building enjoying the same success as our 900 Ann Street project did in 2018 and the years that followed. “DWS’ commitment to the project instils a great amount of confidence in the Queensland property market, specifically the future strength of our local economy,” said O’Rorke. The 895 Ann Street project deal was originated by JLL with CPG, who have also appointed them the leasing endeavour.
Oct 9, 2020
Big-spending budget lifts many boats
The budget puts money into the pockets of consumers – or leaves it there – with $17.8 billion in tax cuts and another $2.6 billion in support payments for pensioners in a direct effort to boost consumption. All going to plan, household consumption is forecast to rise 7 per cent by 2021-22. That largesse could add $15 billion to the nation’s disposable income, a rise of 1.2 per cent according to Macquarie analysts. That will benefit some retailers and ultimately their landlords, as long as they are not already paying down the rent relief needed by tenants such as service operators and cafes. “Aventus is likely a key beneficiary of these stimulus measures,” the Macquarie analysts wrote in a client note. The federal budget also earmarks $1.5 billion to support priority areas in manufacturing. That stimulus, along with a $14 billion spend on infrastructure and the NBN rollout will help the owners of industrial property, including Goodman, as well GPT, Stockland and Dexus, according to Macquarie. Stockland chief Mark Steinert welcomed those measures, saying that the budget focus on advanced manufacturing was “clearly going to lead into new builds on logistics land”. “The infrastructure that is being planned, the $14 billion, that redefines the supply chain and we have seen a real focus regarding on-shoring and surety of supply chain,” he told a Property Council of Australia forum on Wednesday. And just as the surge in e-commerce during the pandemic shutdown has helped the cause of logistics real estate, the budget boost to consumption would further support the sector, he said “That movement of goods will also be positive for logistics.” Morgan Stanley analysts singled out the budget measure of extending the First Home Loan Deposit Scheme by another 10,000 lots. That increase is limited to new construction, which would benefit residential developers including Stockland, Mirvac and Lendlease, according to Morgan Stanley. Lendlease’s chief executive for property, Kylie Rampa agreed. “An extra 10,000 first home buyers stand to save tens of thousands of dollars in the purchase of their first home and this will boost activity in our sector,” she said. “We would similarly encourage the government to consider a future expansion to their highly successful HomeBuilder scheme to support jobs and economic activity into 2021.” However, Macquarie analysts described the budget initiatives as delivering only a “minor boost” for the residential sector, given there was no change in the HomeBuilder program.