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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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How fortunate are we in our little Northside pocket?

Surrounded by Mountains to Mangroves area and living so close to three of Brisbane's important nature conserves makes our local area worth protecting.

With Downfall Creek Bushland Centre (Raven Street Reserve), Chermside Hills and Bunyaville State forest on our doorstep we truly live in a wonderfully unique area.

Bunyaville Conservation Park

Bunyaville Conservation Park is bordered by Everton Hills, Albany Creek and Bridgeman Downs. Access to the area is via Old Northern Road and is open 7.30am-5pm daily.

There are great picnic areas with wheelchair accessible toilets, BBQs, drinking water, car parking and picnic tables for a perfect day out. (There are no rubbish bins so please remove any rubbish you might have).

There are plenty of walking tracks also. Guided tours and talks can be arranged through the Environmental Education Centre on (07)3353 4356 or via their website and there are programs designed to suit school aged children.

Raven Street Reserve

Downfall Creek Bushland Centre is located within the Chermside Hills Reserve at 815 Rode Road and is opened every day. The Education Centre opened Monday-Thursday 9am-4pm. There are numerous children's activities held throughout the year along with guided walks and events for all. For more information check their website (Downfall Creek Bushland Centre) or Contact (07)3403 8888.

There are picnic areas, a car park, walking tracks, drinking water, wheelchair access, playground, BBQs, public toilets and a 1/2 court basketball. There also is a sensory trail which is wheelchair accessible with a continuous handrail, braille, interpretive signage and raised text.

The centre also has a meeting room with kitchen facilities available for hire for community-based organisations, government and corporate groups are also welcome.

Chermside Hills Reserve

Chermside Hills Reserve has car parking available on Hamilton Road at Milne Hill Reserve near the fauna bridge and is open 24 hours daily with only the car parking being locked off after 6pm.

This area has many walking tracks and it's advisable to take plenty of drinking water. The views within this area are breathtaking and if you're walking when there is low light it is also advisable to take a torch.

It's also always a good idea to bring water, sunscreen, protection from the sun and insect repellent.

All of these areas are home to wallabies, koalas, echidnas, lorikeets, possums, kookaburras, and a myriad of birdlife and reptiles.

Do you get wildlife where you live?

We'd love to know what wildlife you have visiting you.

Written by guest blogger: Robyn Baker

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Joyce Peirce – a Chermside West pioneer

Joyce Peirce Village Buzz
Joyce Peirce Village Buzz

Joyce pictured in her back yard with units in the background where not long ago was a grass paddock. Picture by Allan Jackson.

Driving around the Village Buzz area with all its houses, units and commercial properties it’s difficult to imagine a time when it was all bush with a only few people living here and there. I must confess, however, that I hadn’t given the matter much thought until I met up with Chermside West local Joyce Peirce who was an early settler in the area.

Believe it or not, but the house where she still stays was only reachable by a bicycle track through the bush when she first lived on the property. Before we get to that, however, I had better go back to the beginning of the story in Kedron in 1930.

Joyce was born in that year and lived in a house in Shamrock Street with her mum, dad and siblings and went to school at Wooloowin State Commercial High. Her mum died when she was 12 but her father, a furrier, worked from home and brought the kids up by himself.

Word War II was still going on and she can vividly remember the butter and clothing rationing which made things difficult for Australians in those days. Another vivid memory is of Brisbane residents providing hospitality for visiting servicemen by inviting them home for tea.

The war finished at about the same time she turned 14 and left school – as many children did in those days – and went out to look for work. She became a typist at Bryce’s and enjoyed the life of a young woman about town with weekly dances at the War Memorial Hall in Kedron, occasional balls at Cloudland and regular visits to the movies including the Regent Theatre in Queen Street.

She had her first child, Tom, in 1952 and moved to Windsor and then to Inala where she spotted and ‘caught’ Bill Pierce, who was a returned soldier and who worked on the railways at Roma Street as a checker.

The couple decided to make their home on the land that Joyce and her brother had bought years previously in Chermside West. Her piece of that cost £450 which she eventually paid off at the rate of £1 per week.

Her brothers Roy, a horse-dealer, and George, a truck driver, were already living on land nearby. Bill and Joyce first lived in rented house in Trouts Road while a temporary dwelling was built by Bill and her brothers just up the slope from her present house.

The temporary dwelling built by Bill Peirce and Joyce’s brothers just up the slope from where the present house is sited

As mentioned previously, there was only a bicycle track leading to the house in those days and the only other people nearby were her brothers and a family who ran a pig farm located between their property and Rode Road. Brother Roy had a horse and sulky but Joyce was never really comfortable with horses and depended on her bicycle for transport.

She would ride off down the track to Chermside, park the bicycle under the police station and catch the tram to town to go to work. That was fine until she broke her leg but Roy volunteered to drive her to the bottom of the hill in the sulky from where a Bryce’s lorry would pick her up.

In 1961 and with a growing family, Bill and Joyce decided they needed a proper place to live but didn’t have very much money. A new house would have cost them $1400-$1500 so the solution was to buy a house which had belonged to a headmaster in Petrie for $200, cut it into three sections, shift it to its present location and then recombine the pieces.

A view of the paddock which is now covered by dwelling units.

Access to the property was still difficult but Bill and her brothers had been cutting trees to sell for firewood to supplement their income. They cleared a sizeable area on the slop leading down the hill to Chermside and had it graded in exchange for a carton of beer by men sand-mining in the neighbourhood. This shrewd bribe provided easier access to Chermside where Hamilton Road is today.

Joyce eventually gave up her work in town to concentrate on the home where her activities included milking the goats, collecting chook eggs for sale and taking the kids to catch the bus to school. Bill would milk their small herd of cows and they sold the surplus milk as well.

She remembers she didn’t see all that much of her own kids in those days as they were always out exploring in the surrounding bush; swimming in Albany Creek and cooking potatoes, onions and eels they caught there on camp fires.

The house which replaced the temporary dwelling on Joyce’s property soon after it was moved there from Petrie

Concluding our interview, I asked her how much had changed since her days in Kedron and, later, in Chermside West. The short answer to that question is everything; according to her, the only thing that still looks the same now as it did then is Tom Wallace Cycles in Lutwyche Road.

She says she’s had a good life as a Chermside West pioneer, wife to Bill (not good looking but really nice) and mother to four of her own and two of her deceased sister’s kids. I can easily believe it was a good life but I don’t believe, as she also says, that hasn’t been an interesting one too.

The $200 house still in pretty good nick all these years later. Picture by Allan Jackson.

Story for Village Buzz: Allan Jackson

Email: info@allanjackson.net

Website: www.allanjackson.net

Phone: +61 403 943 970