Friday, December 24, 2010

2010 Brisbane Apartment Awards

These are our awards for 2010:

1. Worst Real Estate Agent

Tavis Callard, principal of Open House Reality. Tavis signed a contract to purchase a house for himself, and never settled. He did not pay for advertising for this business, and is being sued for that. He ran Roma Properties (onsite manager for two apartment buildings) into the ground, and it went bankrupt. There are allegations that Roma Properties improperly used another company associated with Tavis to do work for the building, and the body corporate received a payment to settle this claim. Tavis has now filed for bankruptcy for himself. Would you let this man list your property for sale?

2. Wildest Advertising Claim

FKP Properties wins this for their overpriced The Milton development. Their sales agents are giving out printed information to potential investors about future property values. They have a sheet of paper showing investment returns for a 2 bed, 1 bath apartment listed at $650,000. The prediction is that this apartment will be worth $807,500 on completion of the project in 2013, and will be worth over $1M by 2016. The predicted rent is over $720 a week in 2013.

3. Worst Investment

This is a hard one. Many investors who purchased off-the-plan in 2006 or 2007 had to settle this year. Some were unable to get bank valuations anywhere near settlement. The contenders for this category are:
  • Mirvac's Tennyson Reach
  • Niecon's The Oracle at Broadbeach
  • Raptis' The Hilton Surfers Paradise
  • Evolution.
I think they are all bad investments, so maybe a four way tie!

4. Biggest Delayed Development

Again, a number of contenders for this category. There are many big developments that have been delayed indefinitely -- Trilogy, Evolution, Empire Square, FKP's Albion Mill. South Point is another contender here -- although it looks about to finally begin.

But the winner is El Dorado at Indooroopilly. Construction has been about to start for years now. What is going on at this development?

5. Most useless contribution to real estate

The winner is clearly the Queensland Office of Fair Trading. It is supposed to protect consumers and regulate real estate agents. What a poor job it does. Formal complaints were made about Tavis Callard, but they did nothing! And what about the complaints made to OFT regarding the illegally operating offsite agents on the Gold Coast, such as A1, Tailly and Accommodation One. Despite complaints from the public, OFT did nothing, and eventually, these people ran off with hundreds of thousands of consumer deposits. See prior posts. What a bad job OFT does!

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