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Suncorp blacklists your suburb!

blacklisted

Big banks are set to announce tougher measures to crack down on high rise apartment purchases including blacklisting more than 100 Brisbane suburbs, doubling the minimum apartment size to qualify for funding, evidence of rental cash flows and tough new valuation criteria.

Lenders such as Adelaide Bank are introducing "minimum funding requirements" requiring apartments to have their own bathrooms, kitchens, laundries, and windows in key rooms, such as bedrooms and lounge rooms.

Others, such as Suncorp Bank, the nation's fifth largest mortgage lender, are circulating a list of 39 Brisbane postcodes covering more than 100 city and metropolitan suburbs where the new lending restrictions will apply from next Monday.

"Our settings have been adjusted for postcodes based on recent weakness in the investment unit market in Brisbane, with evidence of a reduction in prices," a Suncorp Bank spokesman said.

suncorp restricts lending to local suburbs

McDowall and Everton Parks No 1 rated real estate agent Madeleine Hicks said "suburbs like McDowall, Stafford, and Everton Park, are really a victim of what has been happening in neighboring suburbs Chermside and Nundah.  A lot of units have been built in those suburbs and we are paying the price"

 

"Whilst there has been some unit development in our main suburbs it has been nothing compared to our neighbors," said Hicks.

Nervous lenders are turning the screws on apartment buyers amid growing concerns about over-supply, falling prices, restrictions on foreign buyers and potential risk from combustible cladding widely used on high rise apartment exteriors.

For example, new apartment sales in the Queensland capital have reportedly collapsed by more than 70 percent in a year, prompting desperate developers to offer lucrative incentives to attract buyers.

Developers, such as Consolidated Properties, claim Brisbane has been cruelled by restrictions on financing set up to ease speculative buying in Melbourne and Sydney.

Other developers, such as ForceOne Development, have been using incentives like a free Toyota Yaris to encourage apartment sales.

AdelaideBank, a division of Bendigo and Adelaide Bank, will today (Wed) announce stricter controls on apartment lending that include bigger sizes, better design, identifiable cash flows for investor/lands and more stringent calculations of a borrowers' capacity to repay.

 On the Plus side

"Now presents a great opportunity for cashed-up investors to get into the growing Brisbane market and take advantage of bargains that exist.  We know that the population in Brisbane will continue to increase and that will mean there will always be strong demand for homes in the inner suburbs," said Madeleine Hicks

In fact, Ms. Hicks called for "greater investment in infrastructure in the Stafford, McDowall and Everton Park suburbs to better reflect the increase in population that is moving into these suburbs.  This only seems fair as the Council is collecting greater revenues but not spending the money here."

The Minimum requirements for high-density apartments to obtain funding include windows in bedrooms and living rooms, separate bathrooms, and their own laundries and kitchens. High-density apartments are complexes of more than 50 units or five stories.

Minimum sizes for two bedroom apartments have been doubled to 60 square meters and timeframes for off-the-plan valuations have been reduced from six to three months to "better the risk" and "align acceptance of applications and valuers' professional indemnity cover".

Last month Australia and New Zealand Bank also issued a blacklist imposing tougher terms requiring borrowers to have a 20 percent deposit.

The value of apartments has fallen by about 1 percent in Brisbane during the past 12 months, according to SQM Research, which monitors property prices.

Several recent reports by independent consultants have warned demand will be exceeded by the estimated supply of new apartments in Brisbane, which will add to downward pressure on prices.

There is also growing investor concern about the outcome of current investigations into the widespread use of inflammable cladding on apartments, particularly who will be liable for its replacement.

 Under Suncorp's new rules, it will no longer accept investment loan applications for apartments that do not have a minimum deposit of at least 20 percent.

What do you think are the banks right to restrict lending in certain suburbs only?

Source Brisbane Investor

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“Don’t renovate before selling” warns leading local agent

Madeleine Hicks Says Renovation properties available in Stafford and Everton Park

THE demand for fixer-uppers in Brisbane is so strong, property experts are warning homeowners about the risk of renovating before they list.

Madeleine Hicks from Madeleine Hicks Real Estate at Everton Park said, "we are seeing buyers looking for homes that they can do up.  Especially the older style timber properties that we have in abundance in Stafford and Everton Park."

"Buyers are loving the larger blocks that we have as well as the great city views" Hicks said.

SQM Research managing director Louis Christopher said too often people splash too much cash jazzing up their homes for a big sale.

“In a downturn, buyers will not value the renovations as much as the homeowner,” Mr Christopher said.

“We know the market will penalise over-capitalisation.”

Andrew Winter and Neale Whitaker.

Andrew Winter and Neale Whitaker. Picture: Mike Batterham

Star of Foxtel’s new show Love It or List It and design guru Neale Whitaker agrees, adding the decision to sell or renovate a property demanded thought and research.

“Be careful about overcapitalising,” Whitaker said.

“Have a look at similar properties that are unrenovated like yours in your area and see what they’re going for – and the type yours would be like after a renovation and what they’re going for.

“(Then) work out whether it’s worth doing because, let’s face it, even the most basic renovation is costly.

Even the most basic renovations are costly.

Even the most basic renovations are costly.

“But if you are torn, look at the potential resale value of the house as opposed to the property you would be thinking of buying and whether that’s a realistic transaction – and also the value that could be potentially added to your home.”

Whitaker said the majority of homeowners who decide to stay and renovate want to create more space.

“If they’ve been living somewhere for a long time, they stop realising the potential under their nose but with careful planning they can create the space they need,” he said.

“On the show we came across rooms that were completely redundant – one room was completely occupied by a cat – people get used to living a certain way.”

Renovations are booming in Brisbane’s inner-ring including Albion, Stafford, Alderley and Everton Park, with building renovations and carpentry the most popular, according to Australia’s largest network of trades professionals, hipages.com.au.

The data also showed bathroom and kitchen upgrades were a high priority with homeowners.

 

Mr Christopher said homeowners could renovate their property on a budget, sell it and upgrade to a better property for themselves.

“There are more buyers and freestanding houses in the marketplace,” he said.

“I don’t think we are in a market that is going to value one’s renovations all too well.”

Mr Christopher said Brisbane’s property market had improved however added “the pendulum is in the middle”.

“We are seeing more interstate migrations to Brisbane because of the price difference,” he said.

Love It Or List co-host Andrew Winter advised buyers to have realistic expectations when selling their property.

“Don’t expect to sell easily,” Winter said. “Never believe that your house will sell for more than market value, it can happen but generally it won’t.”

He said to avoid seller’s remorse it was important to hang on to your property if your financial situation allowed.

If you are thinking about making a move in property talk to the team at Madeleine Hicks Real Estate first.  They know the North West because it is their backyard.

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Brisbane’s most in-demand commuter suburbs

How much would you pay for a house within 20kms of the city?  Brisbane’s most in-demand commuter suburbs range in median price from $730,000 – $2,105,000, new data reveals.

Gordon Park is our region’s most in-demand commuter suburb with 1,761 visits per property on realestate.com.au/buy for the six months to 31 May 2017. Located just 5 km from Brisbane’s CBD and with great schools nearby, it’s easy to see why buyers favour this northern suburb. That demand has resulted in a median house price of $797,000.

Nearby Alderley is the second most in-demand commuter suburb in our region with 1,358 visits per property on realestate.com.au/buy. The inner northern suburb offers buyers a great lifestyle with a comparatively affordable median house price of $720,000.

At number three on the list is Stafford Heights which is only 8kms from the CBD and it received 1,286 visits per property on realestate.com.au/buy over the same period.

The visits per property come from REA internal data and the median price data is from CoreLogic for the 12 months to 31 May 2017.

Commuter suburbs are defined as areas located between 10-25km of a CBD.

The top ten most in-demand commuter suburbs are all big on lifestyle, according to REA Group Economist Nerida Consibee.

Village Buzz in demand suburbs

” … these are high demand areas and there are far more people looking than listing – that’s a consideration. They are more expensive for that reason. It shows the suburbs where people want to live and all that demand is really pushing up prices,” she says.

Low-interest rates also affect demand and prices in these areas as buyers opt to purchase at the top end of the budgets.

“With debt being so cheap, people are prepared to take on bigger loans. That’s what the Reserve Bank is worried about, people wanting to get the best home that they can afford and at the moment they can borrow quite a lot to get that,” she says.

Most of the suburbs that made the list are near the bus or rail lines, meaning that transport is driving demand to commuter ‘burbs.

“Schooling is also a factor,” Consibee says with many of the areas in the top ten located in or near to the catchment zones for high-performing high schools.

Development opportunities in these areas are something investors and savvy buyers may also want to consider as many of these suburbs have larger blocks and could be subdivided if the local council allows it.

“Certainly there are townhouses, but not a lot of apartments so this suggests that this is something that could be considered because they are very popular and they are quite expensive areas,” she says.

Source: Realestate.com.au

New Alderley is really coming of age.

alderley-real-estate-madeleine-hicks

Alderley was once the forgotten neighbour to well-known Newmarket, but not anymore.

This ideally situated suburb, only seven kilometres northwest from the CBD and encompassing 2.4sq km area, is coming of age with millions of dollars being poured into its streetscaping and upgrading of its long established train station, as well as a new Coles development boosting local business confidence.

alderley-real-estate-at-village-buzz

A local real estate agent, said until recently, most people had no idea where Alderley was, but were aware of neighbouring suburb Newmarket.

“But in the last 12 months Alderley has arrived on people’s radar and it’s getting to the stage where a $650,000 house on a 405sqm block is entry level, and then the buyers are knocking it down and rebuilding,”

village-buzz-alderley-real-estate

“But there is something for everyone here from one bedroom units in boutique complexes, through to multi-million dollar houses, and because our suburb isn’t zoned for large developments we’re finding that unit and townhouse complexes are selling very well.”

Alderley’s big draw card is its direct access to Kedron Brook Bikeway, offering 40km of cycling tracks perfect for the exercise enthusiast and Grinstead Park giving families a great place to play and picnic.

It’s a very dog friendly, family friendly area.

The suburb itself has been under rejuvenation with $5.3 million recently spent on upgrade and beautification works, a major train station accessibility upgrade on its way and a Coles development site set to boost local business.

Confidence in the area was definitely improving with small businesses starting to move into the area such as boutique bar, The Ploughman Inn and local coffee shops.

Named after a well-to-do suburb in Manchester, England, it looks like Alderley is now well on its way to following in the footsteps of its namesake.

 

Thanks to Belinda Chilton, Real Estate Reporter, The Courier-Mail

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What $600,000 will buy in the Everton Park Region

what can $600,000 buy in Everton Park region

Recently the Treasurer Scott Morrison has been calling on state and territory governments to do more to stop house prices ballooning.

The amount households are borrowing from the bank is getting more disproportionate to their pay packet.

In Brisbane

The median weekly income per household in Brisbane is $1,388.

The average house price in Queensland’s capital was $497,000 in June 2016. This was 4.3% higher than the year before.

Prices haven’t risen in Brisbane as steeply as in Sydney and Melbourne, as the average price tag for a home was only $325,000 10 years ago.

So what can $600,000, get you in the Everton Park region.

McDowall

mcdowall-real-estate-what-600k-buys

7 Marx Street Mcdowall, QLD, 4053

This 3 bedroom, 2 Bathroom and 2 car garage, property on 587 m2, sold recently for $610,000.

Stafford Heights

stafford-heights-real-estate-what-600k-buys

22 Mumbil Street Stafford Heights, QLD, 4053

4 bedrooms, 2 bath, 2 car on 650m2 sold for $600,000

This is a very spacious family home that has been well looked after.

Stafford

stafford-real-estate-what-600k-buys

18 Karbala Street Stafford, QLD, 4053

3 bedroom, 1 bath, 1 car accomodation, on 610m2  sold for $607,000

This is currently a rental property returning a great yield.  The property is suitable for further development and has city views.

Everton Park

everton-park-real-estate-what-600k-buys

4 Ballinderry Street Everton Park, QLD, 4053

4 Bedrooms, 2 bathrooms, 2 car garage on 600m2 and sold for $607,000

A quality home that has been recently renovated with plenty of outdoor entertaining spaces.

Alderley

alderley-real-estate-what-600k-buys197 Raymont Road Alderley, QLD, 4051

3 Bedrooms, 1 bath 1 car accomodation on 375m2, sold for $585,000

This typical Queenslander located close to the city, has all of the charm of yesteryear.

Arana Hills

arana-hills-real-estate-what-600k-buys

83 Minto Crescent Arana Hills, QLD, 4054

This 4 Bedroom, 2 Bath, 2 Car Garage property on 658 m2 sold for $597,500

It was described as a luxuriously renovated ultra modern home with all of the creature comforts needed to relax.

Whilst $600,000 might not be a first home for many, it is clear that you can buy a whole lot of house in fantastic locations in the inner North West.