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
BALLINA and property price development
Hi All , I have been so busy writing mortgage 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. I didn't have the time to do such an extensive on Ballina and Lennox as planned. But I do have a few things I would like to highlight.
BALLINA I noticed with interest that the Weekend Northern Star had a front page spread pumping Shelley Beach as “the New Wategos!” This media hype is really just a way sell more newspapers but I am interested as I have a unit there and always thought it would take off. Unfortunately the years that I have owned it, prices have gone nowhere. The latest media blitz was over a n ordinary home with a great view on Suvla Street just sold for $2M and there is another listed for $1.9M. These are not yet Wategos prices but certainly are setting a bench mark for the area. 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. 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 at 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 is around 5%.
BALLINA UNITS 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 $54,000 on 1050 m2 block and expected to fetch around a $1mil. Units sold individually once strata is finished will be around 330K so there is some margin there.
OCEAN SHORES I had a few 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 may see more capital gain. I think they are right. There are still two other deals that are worth a look.
- Duplex block for $195K, 800 M2 of land with plans done and approved for 2X3 bed units.
- Large house with a swimming pool on a hill with a DA nearly completed to split off a block and sell separately - $580K.
- There are also a couple of very ordinary properties currently listed for 350 - 380 that are safe plays. Anything under 400 in Ocean Shores are a good bet.
CASINO I did manage to send 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 INCREASES 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 $ | % year change |
|---|---|---|
| Byron Bay | $515,000 | -3.7% |
| Ballina | $430,000 | 4.9% |
| Bangalow | $516,000 | 15% |
| Pottsville | $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 rich just keep getting richer. The worst was at Artarmon with a loss of 19%.
Thats all for this time. Talk to me if you also wish to look at freeing up some equity to make a purchase or anything else in the way of finance. I am very happy with the rates and service Jay and I are offering at the moment.
Michael M Murray
Buyers Agent/Mortgage Broker