Ballina and property price developments
April 2007 - Interest rates, Ballina, Casino, non-property option, property prices
May 2007 - New loan option, NSW country and Brisbane prices
June 2007 - Loans, Navra, Property Residex
July 2007 - Hot properties, Sub prime mortgaging, Housing affordability
August 2007 - Property vs Shares, Local market, Citibank offer
September 2007 - Overview, Loans, rates and the whole d... thing!, Properties
October 2007 - Overview, Byron Bay, Ocean Shores, October Property Hot List
November 2007 - Gazumping, The Rate Dance, MO & CT, Navra, Property
December 2007 - Property valuations, Replacement value, Equity finance mortgage
Last newsletter 2007 - Byron Bay market graph, beach front & other properties
January 2008 - Mood of Moment, post crash summary, Gossip
March 2008 - March Musings, New Development
April #1 2008 - War Stories, Property Punting, Interest Rates
April # 2 2008 - Only in Byron, Lo doc Loans and Tax
June 2008 - Debt Consolodation, signs of weakness
July 2008 - Property Punting, Byron Bay Holiday Rental, Housing Affordability
August 2008 - The Wash Up, Signs of Weakness, Growth area, Debt consolidation
Welcome to BPS Newsletter # 8 - April 2007
I have been so busy writing loans that I have had very little time to scout for good properties. Lots of people are entering the market again or getting geared up ready to take the plunge soon.
INTEREST RATES
So rates did not move this month but still may in May. The good 3 yr fixed rate of 7.19% we were offering: It seems that both I, and the banks were wrong about the rate rise. Well done those who have locked in the 3yr fixed at 7.19%. The rest – don’t be frightened off and we still have lots of great deals to do. My associate Jay Perron and I are working hard to source the most competitive rates and deals around.
I didn’t have the time to do such an extensive on Ballina and Lennox as planned. I had two properties ready to highlight in Ocean Shores but one was sold and the other was withdrawn from sale. Many vendors are realizing if they hang on for a year or two they nmay see more capital gain. I think they are right.
BALLINA
I noticed with interest that the Weekend Northern Star had a front page spread pumping up Shelley Beach as “the New Wategos!” This media frenzy is silly but also self-fulfilling. An ordinary home with a great view on Suvla Street just sold for $2M and there is another listed for $1.9M. I can declare an interest in this area, as I own a unit in Grandview Parade (the continuation of Suvla St).
I have always believed that Shelley Beach is a special location and have lived there for a time. It’s a great beach and properties on the Suvla St hill provide great views of ocean and river. The commute to Byron is only 25 minutes along one of the prettiest roads in the country. Unfortunately my off-the-plan purchase was delivered nearly two years late and because there was a glut of new units I had very little capital gain over the few years I have owned it.
The oversupply of new units has now cleared and Shelly Beach should now be a great buy and hold opportunity. I would be happy to talk to anyone who may be interested in buying a unit in the complex I am involved in. The prices are presently discounted but I believe they are present a good buying opportunity. They are especially good value for anyone who has a tax position that could benefit from negative gearing and a depreciation schedule. Prices start around $400K (2X bed lower floors) and go up to mid 500 for 3 Bed upper floors. Some come already with a furniture package and the holiday let yield of around 5%.
For anyone interested in a bigger play. There is a block of modern 4 x 3 bed units brick and tile in top location, strata approved but not registered. Current return $54080 on 1050 m2 block and expected to fetch around a mil. Units sold individually once strata is finished will be around 330K.
CASINO
I did manage to spend a day looking around Casino and am still bullish about this town. Houses around $200K are selling quickly. It is possible to buy a house on 1050 M2, put in a DA for 2 units on a battle-ax block out the back. Units will sell for 200K and the front house could hold the value (if market rises) at 200K. At a 150K build for each unit (inc council contribution, holding costs and agent fees), you could have all up costs of $500k and a sell of $600K. Talk to me if you want more information.
A NON PROPERTY OPTION
I have already mentioned to many of my clients I am associated with a group called Navra Financial Services. They run a managed fund that has been averaging around 18% consistently over the years. They run a one-day seminar where they explain the strategy they use which I believe is safe and consistent. I wish I could declare an interest and say that I get a referral commission but I don’t. I asked if that was possible but I have been through their commission structure and there is just no room in there for little ole me!
They are having another one-day seminar in Brisbane on May 12th. I will be going and will accompany anyone else who wants to attend. The cost is $179 including a great buffet lunch. It is limited to 30 people and it will fill fast. Have a look at www.navra.com.au and you can book for the day online. I think it is difficult to find a good managed fund that offers a good return but does not gauge you on fees.
PROPERTY PRICE INREASES IN OUR AREA
Below is a list of the towns in our area and what has been their performance during the past calendar year of 2006.
| Town | Median price $ |
1 yr % year change |
| Byron Bay | 515,000 |
-3.7% |
| Ballina | 430,000 |
4.9% |
| Bangalow | 516,000 |
15% |
| Lismore | 255,000 |
6.3% |
| Mullumbimby | 380,000 |
2.7% |
| Ocean Shores | 406,000 |
4.1% |
| Pottsville | 419,000 |
1.8% |
| Casino | 189,500 |
3.1% |
| Evans Head | 380,000 |
-3.8% |
| Kyogle | 210,000 |
16.7% |
FYI, the highest property increase in the state was at Darling Point where the median is now $3.1M after an increase of 113%. The rish just keep getting richer. The worst was at Artarmon with a loss of 19%.
Michael M Murray
Buyers Agent/Mortgage Broker