Queensland Unit Purchase

[Dean@Massiveaction]

You'd have to define an "unsolicited letter of offer"??

A developer can pay an intermediary a fee if they sell stock on the developers behalf but it has to be fully disclosed prior to the client signing the contract and Queensland law dictates the fee amount.
It's illegal in Queensland to do what some companies legally do here where the developer pays a margin fee in the background to the intermediary and the client doesn't know.

[Trisha]

Rustica to clarify your question re “2 tier “ From my experience 10 years ago – the contract price for a new 3 bd t/house was $166,000 – the valuation came in at $135,000 – further enquiries lead me to understand that the increased purchase price was for Interstate and overseas buyers – not locals!!! I accept there will be variations in valuations but not to such a difference!!!!
I met a couple recently who purchased an apartment 6 years ago and have just sold for $3,000 less than what they originally paid!!! They are buying again but it is house & land this time being the value is in the land and being very careful of who they purchase through!!
The PAMD Selling Agents Disclosure To Buyer form was to help stop the “2 Tier marketing” as I understand it. Have you read the page 3 guidelines to help complete the Form?
There are obligations the selling agent must disclose “to your knowledge” in regards to a benefit received or expected to receive in connection with the sale. There is a section titled ‘You NEED to disclose’ – the second paragraph would cover some of the behind the scenes referral fees that used to be part of the process – there were many concerns and some offices in Queensland received close attention from the governing bodies on this issue in 2001 – 2002.

The next section states ‘You NEED NOT disclose:’ with item 2 being ‘performance bonuses’ and item 5 being ‘property developers profit or development fee’s’ so I cannot see that this would enforce a vendor to keep the selling price at relevant market level.
I have not come across to date any information governing the amount which can be paid, however I am aware of a Marketing Wealth Creation company who charge the vendor 4% commission which I understand is a lot higher than a Real Estate agents commission of around 2%.
Hope this helps.

[Dean@Massiveaction]

Home prices set to rocket again
By Jenny Rogers

GOLD Coast house prices are tipped to rise by a nation leading 22 per cent over the next three years as Australia's fastest population growth in two decades fuels a ferocious demand for housing.

The city, along with Brisbane, the Sunshine Coast and Darwin, is expected to have the strongest price growth in the country through to 2011 according to leading independent economic forecaster BIS Shrapnel.

The Residential Property Prospects 200S-2011 report also predicts another interest rate hike in the September quarter this year. But this would do little to slow the need for housing on the Coast thanks to continued interstate and overseas migration, 'significant' pent-up demand and strong employment and wages growth.

In a separate study, the Midwood Report has highlighted a lack of hotel stock on the Gold Coast and said the most obvious site was in Broadbeach close to the convention centre.

The Gold Coast's median house price is expected to rise from $475,000 to $580,000 by 2011, according to BIS Shrapnel senior project manager and study author. Angie Zigomanis.

"The shortage of new properties being built, the strong demand from population growth, both interstate and overseas, and the very low rental vacancy rates on the Gold Coast are all the factors bubbling away beneath the surface and fuelling housing demand," said Mr Zigomanis.
He said housing price growth would be slower in the 2008·09 financial year as the market recovered from a series of interest rate hikes and the global credit crunch and should then pick up pace towards 2011..

Mr Zigomanis said that despite a further predicted rate hike, the average cost of renting was set to rise much more than the cost of buying in 2008-09 and 20 I0-11.

The national population is expected to grow by 1.5 percent through 2008·09, the highest since the late 1980’s.
"Australia is experiencing record net overseas migration inflows, which is underpinning what is already strong underlying demand for housing," he said.

"With construction of new dwellings below previous peak levels, a rising deficiency of dwellings is also evident in the extremely low vacancy rates which will drive strong rental growth in most cities."

The Midwood Report called for more hotels to be built on the Gold Coast and said the Broadbeach area dose to the convention centre was the most obvious site.

"The Gold Coast has not seen a new Hotel constructed since Palazzo Versace in 2000," it said.

"The Hilton and Azzura Pacific Resort are the only two projects proposed since then and are both unlikely to be completed before 2011."

The report said average hotel occupancy rates on the Gold Coast had risen from 61.6 per cent in 2000 10 72.9 per cent in 2007 and average room rates had risen from $117.11 per night to $165.72 per night over the same period.


If only we had a decent government in NZ we could have headlines like this too :-)

[Trisha]

Great to see a positive article among the doom and gloom that is around in the papers. There are several other articles in other Queensland papers with various takes on the same theme for Queensland but all appear to relate to long term type accommodation rather than short term holiday let – a very different field.
However it still comes back to the fundamentals of buying at the right price, right location etc – “you make money when you buy, and realise it when you sell”.
Attending several promotions for Qld property recently left me cringing at the incorrect information. One company was promoting NWRT at 15% when it is really 10% which can be reduced to 2%.
Another presentation claiming possible 40% growth this year – read Michael Matusiks report . That same presentation claims “no one has lost money in GC apartments “– talk to the owners/investors who sold for $330,000 less than their original purchase price!! Another apt bought in 2003 and sold in 2007 for $112,000 less than their purchase price when sales were buoyant - an isolated case? No there are many others.
Returns on GC apartments? A friend owns two apartments on GC – one on permanent rental and one is short term holiday let – the difference in income between the 2 hovers around $2000 per year – why? Higher servicing costs and higher wear and tear for the short term let apartment.
Did you see the other article about the tourist numbers dropping and domestic visitors finding “more attractive overseas travel packages”?