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Queensland cheaper when heavy-duty tax hits home buyers

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Brisbane Investor,Property Management, Real Estate Brisbane, Mortgage Broker Brisbane, Brisbane property market, housing sales, Housing market

One of the most frustrating taxes for property buyers in Australia, Stamp duty,  is higher here than much of the developed world.

Brisbane Investor,Property Management, Real Estate Brisbane, Mortgage Broker Brisbane, Brisbane property market, housing sales, Housing market

New research by accounting network UHY examined property taxes in 25 countries and found that high-end purchases hurt Australian buyers the most, but we are expensive at all price levels.

Lowering your stamp duty is a tougher task than escaping other tax hits, but property experts say some strategies are possible.

UHY Haines Norton found a $US500,000 ($545, 000) property attracts tax at 3.7 per cent of the purchase price, while a $US350,000 ($382, 000) purchase brings a 3.2 per cent tax hit. This ranks poorly alongside similar western countries such as the US, which is below 1 per cent, and Canada, below 1.3 per cent.

Australians who buy a $US3.5 million ($3.82 million) property will pay 5.3 per cent of the purchase price in taxes, the fourth highest rate in the study, behind India, Spain and Britain.

Dario Nazzari, a partner and indirect tax specialist at UHY, says stamp duty comprises the majority of property taxes, and raked in more than $1.2 billion for state governments in the 2011-12 financial year.

“Aside from making it harder to enter the homeowner market, higher property purchase taxes may discourage people from moving interstate for a new job,” he says.

Nazzari says unlike land tax, which people can minimise by buying in different states and with different structures, stamp duty is hard to avoid, and he does not see the costs falling soon. “At the moment it’s probably difficult because governments are looking to plug deficits.”

Buyers’ few choices include seeking cheaper properties, which attract a lower rate, or targeting Queensland, where stamp duty rates are about one-third the cost of other states.

Real estate author, academic and investor Peter Koulizos says stamp duty is a huge barrier because it is a large proportion of a deposit, and is often a disincentive to investors, who can buy shares without paying the tax.

Koulizos says people can lower their stamp duty costs by building. “Buy the land, then build – you only pay stamp duty on the land,” he says. “If you’re a first-home buyer, there are many concessions and some of them include stamp duty.”

 

 

 

Original article published at www.news.com.au by Anthony Keane, News Limited Network 18/8/2013

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Residential

The Brisbane suburb where landlords are cashing in on Commonwealth Games

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The Brisbane suburb where landlords are cashing in on Commonwealth Games

AGENTS in Brisbane’s inner western suburbs are reporting an earlier start to the peak rental season with a surge in inquiries in the first week of the new year.

Figures from the Residential Tenancy Authority confirmed rents for apartments in Toowong and St Lucia were bucking general trends across Brisbane.

According to the data, there were 242 two-bedroom units rented in the September quarter in 2017, for a median rent of $415 a week.

In the corresponding quarter in 2015, a total of 183 two-bedroom apartments rented for a median rent of $390 a week.

There was an even more significant growth in prices for one-bedroom units, with 104 one-bedroom apartments rented in the September quarter for a median rent of $380 a week. That compared with just 64 one-bedroom units renting for a median rent of $339 a week in the same quarter in 2015.

“We have been amazed by the good numbers booking inspections and we are renting properties on the first and second viewings, often with multiple applications,” Belle Property Toowong director Robin McIlwain said.

“We have not experienced this sort of activity for five years and are most encouraged by the apparent change in the market.”

“Despite predictions by many that there would be a glut of apartments for rent in the area, there seems to be strong demand for rental accommodation across all types of property, and apartments are as popular as ever.”

Ms McIlwain said demand was rising as a result of a number of influences.

“We have seen our first growth in population in southeast Queensland since 2009 and as soon as we have people moving back to Brisbane, areas like Toowong feel the benefits first,” she said.

Ms McIlwain attributed the early rush for rentals to the University of Queensland commencing slightly earlier this year because of the Commonwealth Games.

Ms McIlwain said the popularity of UQ, which was ranked as one of the top 100 universities in the world, and the popularity in particular of its Business School, had resulted in more enrolments.

“This brings more academic staff and their families as well as students to the area,” she said

Originally Published: www.couriermail.com.au

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Residential

Converted churches make for heavenly retreats

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Converted churches make for heavenly retreats

WANT to get away from it all? Renovated church homes could be your own slice of heaven with cathedral ceilings and light-filled stained glass windows — and the price is a Godsend too.

WANT to get away from it all? Renovated church homes could be your own slice of heaven with cathedral ceilings and light-filled stained glass windows — and the price is a Godsend too.

Three on the market in Queensland right now were priced from $150,000 — for a fixer-upper church three hours from Brisbane, to $250,000 two hours away and about $660,000 an hour and a half away from the capital.

Among the oldest renovated church homes on the market right now was a five bedroom, three bathroom property built in 1885 which is on the market for offers over $659,000.

The former St Thomas church towers over surrounding homes. Source: Supplied

The former St Thomas church towers over surrounding homes. Source: Supplied

Heavenly entrance. Source: Supplied

Heavenly entrance. Source: Supplied

 

The lychgate is being used as a gazebo .Source: Supplied

The lychgate is being used as a gazebo .Source: Supplied

The former “St Thomas” Church at 2B Allan Street, North Toowoomba, was being marketed as being “a sign from above” by agent Robbie Witt of Colliers International Residential — Toowoomba.

“If you are sick and tired of spending your Saturdays looking around the same brick boxes, and feel like you’re a square peg being forced into a round hole, this property is the answer.”

He said it was a “multi-year renovation that saw the home also end up with a separate office and four living spaces.

The original windows are celebrated. Source: Supplied

The original windows are celebrated. Source: Supplied

The ceilings are so high they accommodate a mezzanine level. Source: Supplied

The ceilings are so high they accommodate a mezzanine level. Source: Supplied

Loads of space to play with. Source: Supplied

Loads of space to play with. Source: Supplied

“As well as beautiful cottage style gardens (with original lychgate) and off street parking for three cars, you get all the grandeur you would expect from a previous place of worship.”

He said original features could be seen everywhere from the lead glass to heavy oak entry door, pointed stained glassed windows, original timber floors, and soaring 6.3m vaulted ceilings.

Another church on the market was at lot 124 Barron Street, Hendon — nicknamed The Vatican — that’s priced at $250,000.

The three bedroom, two bathroom, three car space acreage property was 116 years old, according to agent Mark Mauch of Southern Downs Realty — Warwick.

Lot 124 Barron St, Hendon Qld 4362 Source: Supplied

Lot 124 Barron St, Hendon Qld 4362 Source: Supplied

That’s a long way up to dust for cobwebs. Source: Supplied

That’s a long way up to dust for cobwebs. Source: Supplied

The former church is a substantial size for a house. Source: Supplied

The former church is a substantial size for a house. Source: Supplied

“Built in Warwick in 1901, and named Williams Hall the building was moved to its current location from the Uniting Church grounds in Guy Street Warwick in 1998,” was how he described it in his listing.

The former church was on a large 1.9 acres across three titles 15 minutes north of Warwick and 40 minutes south of Toowoomba.

Among the original features that are outstanding were the original arch doors and stained glass windows.

In Goomeri, three hours northwest of Brisbane, a renovated church that was built in 1950 has hit the market.

Agents Margaret and Gary Long of Murgon Real Estate — Murgon were looking for a price of just $150,000 for the property at 28 Jones Street.

28 Jones Street, Goomeri Qld 4601 Source: Supplied

28 Jones Street, Goomeri Qld 4601 Source: Supplied

Very spacious indeed. Source: Supplied

Very spacious indeed. Source: Supplied

The back veranda. Source: Supplied

The back veranda. Source: Supplied

The four bedroom, two bathroom, triple car space converted church home was on a large 1,012sq m block of land.

“This church has been carefully converted and extended to a comfortable four bedroom home,” was how it was described.

Some original features were retained and the home has polished timber floors, large open plan living, a rear deck and a two bay lockable garage with carport.

Originally published: www.news.com.au

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Residential

National apartment statistics: Two-bedroom apartments most attractive to Aussie buyers

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National apartment statistics: Two-bedroom apartments most attractive to Aussie buyers

Property consultants Urbis surveyed 37% of brand new and off the plan apartments across Sydney, Melbourne, Brisbane, Perth and the Gold Coast in the September 2017 quarter, recording a total of 1,241 sales. This is a 35% decrease in sales from the previous July quarter which recorded a spike in sales, though similar to the March 2017 quarter (38% of market surveyed), which recorded a total of 1,360 sales. Of the surveyed apartments nationally, 75% are now sold.

Urbis monitored over 100,000 actively selling apartments across 704 developments nationally, of which 69% are currently under construction or built. Despite the sales slowdown, the number of available apartments remaining to sell is at the lowest level in years.

National Director of Property Economics and Research, Clinton Ostwald, said, “At the end of the quarter, only 9,827 surveyed apartments remained available for sale, compared to 12,548 apartments at the same time last year. Fewer new apartments are launching to the market, leading to fewer sales, however, the existing product is still selling though at a slightly slower rate.”

PRODUCT
Two-bedroom, two-bathroom apartments were the most popular selling product, accounting for 47% of total sales, compared to 39% in the previous quarter. One-bedroom, one-car park apartments were the next most popular product type making up 23% of total sales. Three-bedroom plus product recorded 13% of total sales, the same rate as the previous quarter.

Looking at projects currently under construction, an average of 55% of future supply across the country is made up of two-bedroom apartments, while one-bedroom apartments make up 32%, with the remainder being three-bedroom plus units and studios.

PRICE
Across Australia, the weighted average sale price decreased by $36,672. This decrease was only felt across Brisbane and Perth, which impacted the overall price as surveyed sales in these cities made up 46% of the sample.

Mr Ostwald said, “The number of apartments on the market which had recently been completed had an impact on price, as developers, particularly in Brisbane and Perth, were keen to move existing product.

“Across the country quality apartments in highly sought-after locations are selling first, quickly achieving their presale targets.”

In Perth, 44 percent of actively selling apartments are now built. Similarly, in Brisbane 35 percent of projects have completed. In Sydney and Melbourne, respectively, only 14% and 10% of actively selling apartments are built. Nationally, the weighted average sale price for a built apartment was $657,000, for an apartment under construction $788,000, and for an apartment in presales $914,000.

FUTURE SUPPLY
Sixty-nine developments yielding over 11,000 units settled in the quarter, the majority of these being in Brisbane (31%), Melbourne (33%) and Sydney (31%). Additionally, nineteen projects yielding just under 2,000 apartments sold out in the quarter.

Twenty-nine projects yielding over 4,000 apartments launched nationally in the quarter, compared to 56 projects yielding over 6,000 apartments in the same period last year. As well as a slowdown in project launches, only 7,047 apartments were approved, the lowest number of approvals since the beginning of 2014.
Mr Ostwald noted, “The slowdown in supply along with demand was a positive sign for the apartment market.”

“In 2018, over 44,000 apartments are expected to settle across all five cities, including approximately 10% of which belong to already sold out developments. The skyline and the way we live in Australia is changing, however, the pace is currently maintainable. Currently, there are approximately 131,000 apartments in development application and approval across the five cities and new development approvals are slowing down.

“Of course, not all of these will come to the market, and the level of demand will regulate what does sell and is eventually built.

“In Q3, each state had their own story to tell about market conditions, however, the united message was one of stability.

“In Brisbane, fewer launches, combined with competition from built product that hasn’t been able to settle suggests we won’t be seeing sales numbers increasing, but rather maintain at the current pace.  Elsewhere in Queensland, with the festive season and the lead up to the Commonwealth Games, The Gold Coast is quite active for property developers.

“In Sydney, owner occupiers and local state investors made up 86% of total transactions this quarter, so we can see that in current conditions the market is very much a local one. The Melbourne market is still very much in presales, and almost 50% of active selling projects in Inner Melbourne has not yet commenced construction. While in Perth, we are seeing sentiment improve the economy and property market, and we expect to see population growth levels improve, leading to more demand.” said Mr Ostwald.

Urbis Apartment Essentials Q3 2017 snapshot:

  • 1,241 sales were recorded in the September 2017 quarter across:
    • Sydney (381 sales, 19% of market surveyed, market size 41,844 units)
    • Melbourne (291 sales: Inner Melbourne 131 sales, 22% of market surveyed, market size 32,636 units – a further 160 sales were recorded in the middle-ring)
    • Brisbane (300 sales, 62% of market surveyed, market size 18,441 units)
    • Perth (276 sales, 88% of market surveyed, market size 10,681 units)
    • Gold Coast (153 sales, 83% of market surveyed, market size 4,519 units)
  • Weighted average sale price recorded at $822,570, a national decrease of $37,000.
    • Sydney – $1,205,774 – $47,000 increase
    • Inner Melbourne – $737,473 – $82,000 increase
    • Brisbane – $644,667 – $81,000 decrease
    • Perth – $608,424 – $53,000 decrease
    • Gold Coast – $676,307 – $48,000 increase
  • The most popular product type was two-bedroom, two-bathroom product at 47% of total sales. Across the cities the highest selling product types were:
    • Sydney – Two-bedroom, two-bathroom apartments – 32%.
    • Inner Melbourne – Two-bedroom, two-bathroom apartments – 27%.
    • Brisbane – Two-bedroom, two-bathroom – 50%
    • Perth – Two-bedroom, two-bathroom – 60%
    • Gold Coast – Two-bedroom, two-bathroom – 69%
  • 31% of actively selling apartments are in presales, 49% are under construction and 20% are recently built.

ENDS
For media enquiries contact: 
Rebecca Parry, DEC PR
Ph: 02 8014 5033 E: urbis@decpr.com.au

About Urbis

Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions.

Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time.

Originally Published: www.military-technologies.net

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