Sunday, February 10, 2013
End of the Down Cycle
Tuesday, November 13, 2012
Brisbane Transaction Volumes Increase!
Saturday, November 3, 2012
Property or Shares?
Sunday, September 23, 2012
Ten Percent Under Water in Queensland
Brisbane is slightly better than the Queensland statistics.
Thursday, August 2, 2012
No significant improvement: RP Data
· Looking at value movements across broad price segments in the market to June 2012, the premium housing market is recording the largest falls (down -3.4% over the year) while the broad ‘middle market’ has been the most resilient with values falling by -2.0% and the most affordable suburbs have recorded value falls of -2.9%.
Saturday, May 26, 2012
Slow Growth For Property Values
See SMH
Wednesday, May 9, 2012
Budget to Impact Property Prices
The Government will remove the 50 per cent CGT discount for non residents on capital gains accrued after 7.30 pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non residents choose to obtain a market valuation of assets as at 8 May 2012. This measure would affect capital gains relating to taxable Australian property (e.g. capital gains from Australian real estate or interests in Australian land rich entities) which are realised by non-residents who would otherwise be eligible for the CGT discount (e.g. foreign individuals).
The Government will adjust the personal income tax rates and thresholds that apply to non residents’ Australian income. From 1 July 2012, the first two marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents (32.5 per cent) and will apply to all taxable income below $80,000. From 1 July 2015, the same marginal rate will again rise from 32.5 per cent to 33 per cent.
Source: KWM
Tuesday, February 21, 2012
Casino Towers Auction Result
The owner/vendor purchased this apartment in August 2006 for $875,000, and so lost money.
The first owner purchased this apartment off the plan from Devine for $840,000 in 2005, and so over 6 years, this apartment went down in value.
Sunday, February 19, 2012
Brisbane Apartment Capital Growth
Wednesday, February 8, 2012
Extent of Losses
Let's assume Mr Investor purchased a Brisbane apartment on 31 December 2010 as an investment for $485,000. Assume that he borrowed 80% of the purchase price, including stamp duty. Stamp duty is $14,850. So the total purchase cost, including legal fees and bank fees, is just over $500,000. Mr Investor put in $100,000 of his own money, and borrowed $400,000.
That apartment, if it went down 6.5% in value, is now worth $453,475. That is a capital loss of $46,525.
So Mr Investor has had a capital loss of over 46% in one year. That is the risk of leveraging. A small decrease in value means a large capital loss where there is a leverage situation. (If Mr Investor had to sell, he would pay over $10,000 in real estate agent fees, making his capital loss even greater.) If values decrease further, Mr Investor will be completely underwater. I suspect that there are many apartment owners in Brisbane who have little or no equity left.
Tuesday, October 11, 2011
Price Growth Predicted for Brisbane
Friday, September 2, 2011
Growth Slows in last 5 years
"Over the past ten years capital city home values have increased at an average annual rate of 6.8%, however it has been a tale of two distinct five year periods: the boom times during the first part of the decade and more subdued growth recently. ...
Saturday, August 27, 2011
House Price Crash
Friday, August 5, 2011
Skyline Apartment Prices Fall
- Apt 204 sold for $835,000 in 2008; resold for $755,000 this year
- Apt 393 sold for $840,000 in 2004 off the plan; resold for $800,000 this year
- Apt 401 sold for $970,000 in 2007; resold for $925,000 this year.
Saturday, July 30, 2011
Capital Gains and Losses
This analysis excluded gross rents, which are currently around 4% to 5% per annum. It also ignores all transaction costs, which sum to around 1% to 2% per annum for the average home owner who stays in a property for seven to eight years.
Source: Chris Joye in Property Observer
Wednesday, February 9, 2011
Capital Growth
The potential for future capital growth remains the number one incentive for Queensland property investors, according to new research from the Real Estate Institute of Queensland (REIQ).
The REIQ conducted buyer and seller behaviour research late last year which found capital growth was the top reason for buying an investment property in Queensland for 74 per cent of buyers.
The next most common reasons to buy investment property were to fund retirement; for negative gearing purposes; as a means of deriving an income stream; or because they believed it offered a better long term return than shares or super.