Tewantin Real Estate and Noosa Real Estate
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We have 2 offices in Noosa and Tewantin and a highly professional team of consultants that know the Noosa real estate market. Our aim has always been to act in the best interests of our clients in the Noosa area and to achieve the highest price possible for our clients in the marketplace.
The strategies we have perfected for selling property result in a high success rate within 60 days. Our services come with a written guarantee because we know our happy clients are the best source of future business.
If we can be of assistance, please call into our offices at Noosaville or Tewantin
Or call us on (07) 5449 8899 or (07) 5449 9122
What’s happening in the Tewantin and Noosa Real Estate Market
A question we are asked every day. Whilst we can’t predict the future we have observed over the years certain trends and patterns with Real Estate growth that
There are many reasons to not just follow the herd and buy when everyone is buying.
Property investment tends to be more of a medium to long term investment, in fact some investors never sell, they just keep refinancing. In the past 120 years across Australia property has recorded growth of 10.4% per annum. That is despite wars and depressions. Isn’t Noosa and the Sunshine Coast a good bet to continue that trend.
It gets better, if we add rental return of say around 4% and tax benefits we could round up around 16% pa. Can you see now why Real Estate is so popular to create solid wealth? Of course there are expenses to hold and lending costs, all tax deductable.
Leverage is the key, you can borrow up to 100% of the property value depending on your income and assets. This means you could say control a portfolio of say $1million with assets of $200,000. If the property appreciates by 10%, there’s a $100,000 increase. Just have to be in long enough to complete a cycle which has been every
5-10 years.
If we look at the current market we find:
Interest rates are falling to lower levels than we had in 2003 and predicted to fall to below 5% this year. This makes property even more affordable.
Rents are increasing at about 10% or more per year and due to the low supply and strong demand this looks likely to continue.
Property prices in the Noosa area have softened, so you can buy well at the moment and there is a good selection of competitive priced property. Tewantin has houses from $385,000 which are just over land value.
Government have been making it easier to buy for the First Home Buyer, the grant now if you qualify is $14,000 and $21,000 for a new house until June 2009.
Noosa
and Tewantin home prices
This week’s biggest property related
story was probably BIS Shrapnel’s release of their three year forecasts
for property prices. Within the release they forecasted that capital city price
growth over the next three years would range from 11% in Darwin to 19% in
Sydney, Melbourne and Adelaide. Their forecasts have come in for much criticism
however (as we will study later in the Pulse) the forecasts reported by the
media did not take into consideration the fact that these figures include
inflation.
Although many have suggested these forecasts are quite bullish, in real terms
we are talking about increases of between 5% and 9%. The media headlines also
don’t mention when in that three year period the growth will happen. I
don’t think anyone would believe the next year to year and a half will
see strong price growth given the economic climate but given the undersupply of
dwellings in Australia and the cyclical nature of our market it may be the case
that property prices will rebound in the second half of the three year period.
Dwelling commencements data was also released during this week with the
statistics showing that the trend estimate dwelling commencements for the March
2009 quarter fell by 8.5, following an 8.4% fall in the previous quarter. Many
economic commentators as well as Government Departments have highlighted
Australia’s ongoing shortage of housing estimated to be somewhere between
40,000 and 80,000 too few dwellings. In order to cater for our booming population
it is imperative that dwelling commencements improve to provide housing for
those in need and to minimise affordability issues that arise due to this
shortage. Given this result it is unsurprising to see Government incentives for
purchases of new houses however, it may be more effective to slash the
restrictive charges on new development and inject money into the timely
deployment of critical infrastructure in and around these new housing areas on
the outskirts of our capital cities.
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