What is the Contract Process in Queensland?

What is the Contract Process in Queensland?

Property Buyers purchasing real estate from interstate often are not aware that the contract process in Queensland is different to other states.  Often the process of buying a property can be daunting, especially if it is your first purchase. 

Questions that are commonly asked include the following:

What is the process of making an offer on a house?

Can a real estate agent disclose offers to other buyers?

What is multiple offer?

When does a contract become unconditional?

What is the normal settlement period in Queensland?

Making an offer of a house qldThis article will summarize the process of making an offer on a house in Queensland.  It will also provide information on various other steps involved in the contract process in Queensland. 

The purpose of this article is to help property buyers understand the process in more detail and the various steps involved. 

Of course buying at auction has its own set process.  In this instance you are buying unconditionally on auction day.

This summary will therefore provide guidance on the contract process in Queensland when buying a property listed for sale by private treaty, which is the most common form of sale in our region.

Step 1 of the Contract Process in Queensland – Making an Offer

So, you have found the perfect property to buy?  What is the next step?

Assuming that you have already inspected the property and completed your due diligence process (if not I suggest you read 9 Property Due Diligence Checks before You Buy), the next step involves making an offer on a house, or what ever property it is you are looking to buy.

on couch in house with owner occupier appealFor many buyers, a phone call to the Sales Agent with a verbal offer of the amount and basic terms is often how an offer is presented.  However, in this instance, the details of the offer are often not clearly understood.

For this reason, we always recommend when making an offer on a house, that the offer should be put in writing because then the Real Estate Agent has an obligation to present your offer to the Seller. 

The best way to do this is to ask the Real Estate Agent for a copy of the Contract of Sale.

Some Sales Agents might hand out a “Letter of Offer” Form that can be completed.  Whilst this is better than a verbal offer, we still recommend that you ask for a copy of the written contract and put your offer forward in contract form.

This enables you to get the contract reviewed by a Solicitor BEFORE YOU SIGN, and it also ensures that the offer is seriously considered by the Sellers.  Additionally, it enables you to clearly define any terms or conditions of the offer.

Some common conditions in real estate contracts in Queensland include the following:

  • Subject to Finance
  • Subject to a Building & Pest Inspection
  • Subject to Body Corporate Searches
  • Subject to further Due Diligence (which can be anything at the buyer’s discretion)
  • Subject to a Rent Back (if the sellers have not purchased elsewhere)

There are many other conditions that buyers and sellers might need as special conditions as well, depending on the individual circumstances.  You can review many other typical conditions in Queensland contracts in this Quick Guide.  Remember all conditions can be negotiated throughout the contract process in Queensland too!

Here is a quick video explaining how to make your conditions more favorable to a seller:

When an offer is presented to a seller in Contract form, negotiations can occur in writing, on the contract itself.

What information needs to be included with your Offer?

The information that is necessary for a Contract to be completed accurately includes the following:

  1. BUYER – The Name must be the full legal name in which the property will be purchased.  Make sure the spelling is accurate and include all middle names.  It can be costly to change the name on a contract once a contract is complete, so this is a necessary first step.  Also, if the buyer is a company or a trust, ensure it is registered and is a legal entity on the date of the contract.
  2. BUYER’S SOLICITOR – Details of the conveyancing firm that will be completing the conveyancing for the purchase.  Don’t assume you can do this yourself.  Experts are there for a reason!
  3. PURCHASE PRICE – The amount you will be offering to purchase the property for.  This will depend on the property value, the current market conditions, the level of competition and many other factors.  Of course this is the part that many buyers get wrong.  Often buyers either overpay, or they miss out because someone else was prepared to pay more.  Getting expert advice from a professional Buyers Agent often saves a lot of money and stress!
  4. DEPOSIT – This is usually broken down into two parts.  Both of these are also negotiable, but in Queensland the total deposit can not be greater than 10% of the purchase price.  The deposit funds are usually held in a Sale’s Agent’s trust account until settlement.
    1. Initial Deposit – The amount payable once a contract is accepted 
    2. Balance Deposit – The amount payable once a contract becomes unconditional
  5. FINANCE – Whether the contract will be conditional to obtaining final finance approval and if it is then details of the number of days required for this approval must be completed
  6. BUILDING & PEST INSPECTION – Whether the contract will be conditional to a building and pest inspection and if it is then details of the number of days required for this purpose
  7. POOL SAFETY INSPECTION – If the property has a pool, then a pool safety certificate is required or a pool safety inspection can be arranged.  Check with your Solicitor regarding the details outlined on the contract in this instance so you understand what is required.
  8. SPECIAL CONDITIONS – any other special clauses that you wish to insert (best to get legal advice about this)
  9. SETTLEMENT PERIOD – the number of days between acceptance of a contract and settlement.  This is sometimes specified as a date, or alternatively a number of days from the Contract date.  In Queensland, the most common settlement period is 30 days, although like most other terms, this is also negotiable.

If all of these particulars are provided on a contract that is signed by the buyer and presented to a seller, it is very easy for a seller to see the entire offer, and not just consider the purchase price.  Often the conditions that accompany an offer can influence a seller’s decision to accept a particular offer or not.

In some instances, there may be high competition for a property and the contract process in Queensland can often result in a Multiple Offer situation.  There are specific regulations around how this works.  See the video below for some hints and tips for buyers in this situation.

It is best to present your offer in Contract form so that the Seller has the opportunity to sign immediately when your offer is presented to them, which creates a legally binding contract, or alternatively, the Seller may choose to put forward a written counter offer back to you to consider further. 

This is a powerful way to enter negotiations as each party can see very clearly what the particulars are in relation to the purchase.

Once an offer is presented to a seller, there are three possible outcomes.

  1. The seller accepts the offer and the contract is signed and completed.
  2. The seller rejects the offer and the negotiations come to an end.
  3. The seller makes a counter-offer for the consideration of the buyer.

The counter offer process will continue between the parties until an agreement is reached, or until negotiations come to an end.  It is not until an agreement is reached between the parties that the contract is dated and a copy is send to the solicitors acting for both parties.

Most Agents use standard form contracts in Queensland approved by the Real Estate Institute of Queensland or the Queensland Law Society.

Step 2 of the Contract Process in Queensland – Offer Accepted

making an offer on a house qld

Once your offer is accepted by the sellers, then the Real Estate Agent will date the contract and it then becomes legally binding. 

This is the time to celebrate milestone number one!!!!

This is also the time when the initial deposit will become due and payable.  You should receive instructions from the Real Estate Agent in relation to where the deposit money needs to be transferred to.

What is the Cooling Off Period when you buy a Property in Queensland?

Queensland law provides a five business day cooling off period when you sign a real estate contract for the purchase of a residential property (excluding sales by auction). 

This commences when the buyer receives a copy of the contract singed by both parties. 

If you wish to cancel the contract  during the cooling-off period, then the seller may deduct a penalty of up to 0.25% of the purchase price from the deposit paid.

What happens during the Contract process in Queensland whilst a Contract is still Conditional?

when does a contract become unconditional - unsure buyerIf a contract is entered into and it is conditional to finance, building and pest inspections or any other special conditions, then certain steps must be taken by the buyer straight away.

Time frames will be prescribed in the contract to meet the requirements of the conditions (often within 14 days but this can sometimes be longer or shorter because it is as negotiated between the parties).

  1. You will need to book a building and pest inspector (and pool inspection if relevant) to complete the inspection on your behalf.  Access is coordinated with the Real Estate Agent.
  2. Your bank or mortgage broker will also coordinate the necessary steps to obtain final approval on finance if the contract is conditional to this.  Sometimes this includes a valuation of the property, which again is coordinated with the Real Estate Agent.

Regular communication with your solicitor or conveyancer during this period is critical to ensure you are complying with your obligations under the contract.

Once you are satisfied with the outcome of any conditions under the contract, your solicitor will notify the seller’s solicitor that you are satisfied with the conditions and at this time your contract will become unconditional.

 

When does a Contract become Unconditional?

A Queensland residential contract becomes unconditional when the buyer gives notice through their Solicitor that they have satisfied all of the conditions prescribed in the contract.

The balance deposit outlined in the contract will become payable when your contract becomes unconditional. 

During this period final searches will be conducted to make necessary arrangements for settlement.  The bank will liaise directly with the conveyancer to arrange transfer of funds and to ensure settlement can be booked on time.  The applicable paperwork is also submitted to the relevant government bodies to ensure settlement can occur on a specified date.

It is always important to conduct a pre-settlement inspection on the morning that settlement is due to take place to ensure that the property is empty and in the same condition as when you initially inspected it.  If there are any problems with the condition of the property it is important to discover this BEFORE settlement – not after.

Here is a short video explaining this process:

Step 3 of the Contract Process in Queensland – Settlement

The property settlement is the final stage of a property purchase. 

At this time the seller receives payment of the agreed contract price, and the buyer takes legal possession of the property. Settlement is attended by representatives from the bank and the solicitors.

Keys can be collected from the Real Estate Agent once Settlement has been completed.  This is because the property ownership has officially transferred at that time.

Summary

There are many stages in the contract process in Queensland and this article has outlined them in detail.  Purchasing a property can be complex.  Of course, some contracts may be a lot more complex with special conditions and therefore legal advice is recommended in these circumstances. 

Buyers should seek the assistance of a professional Buyers Agent or Solicitor to navigate through this process.  Of course, We are here to help and guide Clients through this experience.

 

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Seasonality in Brisbane Property Prices

Seasonality in Brisbane Property Prices

This article explores what the seasonal trends are in Brisbane property prices and the causes for these differences.  Research has suggested that the most expensive month to buy in Brisbane is January with 0.5% to 0.78% increase in house prices due to seasonality changes.

graph of rental yields to determine where to buy an investment propertyThis has been broadly attributed to the alignment with the start of the new school year and the commencement of public service contracts (especially in education) and the end of the summer holiday period. Others have maintained that often decisions about moving are made during the Christmas break, so listings increase soon after.

But it could be argued that local drivers of supply and demand may be different this year as we have been experiencing very low listing volumes over recent months, and this has already been limiting the supply side of things throughout the spring season.

To get an understanding of what is happening in terms of supply and demand locally, I provide the following commentary…

Throughout 2019, Brisbane has been coming out of a period of oversupply in the inner city unit market, which dampened property values in the medium to high rise unit space and also caused a softening of rental returns and higher vacancy rates in all properties close to the CBD as discussed previously.  More recently we are seeing a return to growth in rental returns throughout Brisbane and vacancy rates tightening due to most of that apartment stock being absorbed due largely to accelerating population growth over recent times.

In the sales area, we have had very low listing volumes for several months and there has certainly been a growing trend of a lack of quality properties available in certain locations throughout the city – putting a limit on the supply available. Since mid-2019, however, there have been a growing number of buyers driven by both local and interstate interest, increasing the demand for properties and starting to push prices up in some locations around the city.

There are examples at auctions we have attended where there were 19 and 21 registered bidders in two locations (one south-side and one northside) in November – illustrating the huge buyer demand for quality properties in desirable locations throughout our city.

Going into 2020, construction commencements are down so new supply will continue to be limited in the foreseeable future.

Sales Agents are more optimistic about new listings early in 2020, so we are hopeful that we see more sellers providing their homes for sale in the new year which might have a more immediate impact on supply in line with the findings in relation to seasonal trends – but that is yet to be confirmed. It seems many Brisbanites are holding on to their properties – a reflection of an increase in the number of years property owners tend to own a property before selling on.

In terms of the First home loan deposit scheme available for first home buyers from 1 January 2020, in Brisbane only properties valued up to $475,000 will be eligible and this will most likely push any of those buyers into LGA outside of the Brisbane City Shire if they are considering a house on a block of land, or alternatively, it will enable a purchase in an inner city or inner ring suburb apartment or a townhouse in a middle ring suburb.

I’m unsure if we are likely to see any significant change in the demand for property as a result of this scheme due to its limit to 10,000 borrowers – but I guess time will tell.
From our own internal enquiry we are certainly seeing a spike in interstate investment interest in the Brisbane market driven largely by our affordability and desirable rental yields. There seems to be a lot of optimism around Brisbane – and has been for some time.


Time will tell what will eventually unfold in terms of Brisbane property prices. In the meantime, we have a seller’s market in Brisbane where there are a lot more buyers then there are sellers. This is likely to have a positive effect of price growth unless we see more sellers bring their properties to the market to level out the supply and demand equation.

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What Makes Brisbane Property Unique?

What Makes Brisbane Property Unique?

Brisbane is known for its warm, sunny weather as well as its relaxed lifestyle. Brisbane Property has been designed to reflect this climate and lifestyle.  Our city is the “little sister” city to the larger capitals of Sydney and Melbourne. But in terms of Brisbane homes, our City is quite unique. Let’s explore what is so special about Brisbane Property.

What is a Queenslander Home?

Brisbane suburbs are often distinguished by the architectural form of the typical Queenslander-style residence. Typically, the Queenslander style of home is a single detached house made of timber with a corrugated iron roof. In their original form, a typical Queenslander was a high set, single storey dwelling with large characteristic verandas. The homes were built up off the ground on stumps to counteract the more extreme climatic conditions. The underfloor area served the purpose to cool the building through increased air flow and ventilation as also protected the timber building above from termite attack and other pests. Additionally, it allowed homes to be constructed without the requirement for earthworks to flatten the site for construction and during heavy storms, it also allowed water to flow freely underneath the home.

How can traditional Brisbane Property be adapted for modern living?

The benefit today for many Brisbane property owners, is that the buildings are quite versatile. They can be raised, lowered or moved around on a site. A Queenslander home can even be transported to another location relatively easily.

Due to their unique character, many of these homes are now protected to maintain the unique architectural heritage of Brisbane’s past. Council have placed a higher level of control over what you can and cannot do with these properties and therefore, as a property buyer, it is important to understand what this means.

There are certain things you can do to a character house without approval from council including raising the property and building in under the existing footprint as well as renovating the internal areas of a home. However, there is a growing list of building works that require a development approval from council when it comes to changing character homes, and therefore property owners must understand what additional costs may apply to a property purchase if future works are proposed.

So how do you know if the house you are looking to buy is a “Character” home? Well that’s where we can help. There are certain rules that apply to properties before they are classified as a Character home and you can either check with a Town Planner before you buy, or use the services of a specialised Brisbane Buyer’s Agent who should be able to provide this information for you. It is better to understand the potential costs up front, and getting a clear understanding of what can and cannot be achieved when it comes to improving a property, rather than being surprised down the track.

5 Top Reasons Why the Brisbane Market is Set for Growth

5 Top Reasons Why the Brisbane Market is Set for Growth

There is a lot of speculation about which property markets in Australia may outperform in the immediate future. The Australian Property Market as a whole has been going through some very rough times, but not all markets in Australia have been losing value. As a Brisbane market specialist, I can certainly outline why Brisbane is one of those markets with many strong fundamentals in place for upward pressure on housing prices. According to several leading real estate analysts, the Brisbane market is now on the verge of some significant growth. Here I explain the 5 top reasons why Brisbane may be set to outperform some other major housing markets within and around Australia.

1. Accelerating population growth

Brisbane’s population has been consisently increasing over the past few years, and the rate of population growth has been accelerating over the last 4 years straight. This is driven largely by an increase in interstate migration whereby many are giving up on lifestyle offered by the more expensive larger cities in Australia, in search of more affordable housing options, the laid back lifestyle and a warm climate to match. ABS data confirms that Queensland is Australia’s favourite destination for interstate moves, with just over 220,000 people switching their address to the Sunshine State in the five years preceding the 2016 Census of Population and Housing, and the majority of these new arrivals are settling in the south east corner.

Of course, when you have an increasing number of people moving to Brisbane, there have to be employment opportunities for them and also a place they can call home. This increases the demand for housing in a given area, and in some locations where there is limited new supply of housing, it can lead to upward pressure on prices.

2. The Oversupply of Units seems to have been absorbed

A couple of years ago, most commentators were predicting that there would be a bloodbath in the Brisbane unit market because there was so much new supply coming to market and a concern that not enough buyers would be able to settle on their off-the-plan purchases. In actual fact, whilst there has been a softening in the price of inner-city units in Brisbane, we certainly have not seen prices fall significantly as per previous predictions. Furthermore, it seems that the supply has been very well absorbed by the increasing population growth to the region. We now have a situation where apartment completions are decreasing dramatically, and commencements have also dropped significantly, and there is now a very real chance that the whole unit market in Brisbane will be in undersupply by 2020 and beyond. The most recent Herron Todd White property clock places Brisbane units as approaching the bottom of the market and this may be supported by recent values in Brisbane units showing stabilisation of values.

3. Brisbane’s Economy is well diversified

The Queensland economy struggled in years past after the mining boom came to an abrupt halt, but we have now seen a rebound in economic growth. According to Deloitte Access Economics, Queensland is expected to grow at a very healthy 3.4% in 2019, and this comes off the back of many consecutive quarters of positive growth in business investment. There are a huge number of multi-million-dollar projects around Brisbane at the moment, creating jobs and stimulating the economy once again. According to the Brisbane City Council Economic Development Plan, by 2031, the Brisbane economy is expected to be worth more than $217 billion.

4. Relative affordability to Melbourne and Sydney

The value gap between Brisbane and the two southern cities of Melbourne and Sydney is the largest it has ever been. Between 2012 and 2017, median values rose more than 50% in Melbourne and more than 80% in Sydney, whereas in Brisbane during the same period price growth was slow and steady. This relative affordability, is likely to be a contributing factor to the increasing levels of interstate migration.

Additionally, compared to Sydney and Melbourne, Brisbane offers a lower point of entry for property investors, with more attractive rental yields as well. In Brisbane it is not uncommon for property investors to achieve rental yields greater than 4.5%, a number that is much more difficult to achieve in the other East Coast Capitals.

5. Brisbane has a significant number of infrastructure projects underway

The improving local economic conditions in Brisbane is being underpinned by the biggest infrastructure spend since the 2011 flood recovery. Projects include the Queens Warf, Howard Street Wharf, the second airport runway, cross-river rail, Herston Quarter, The University of the Sunshine Coast Petrie Campus, the metro and TradeCoast. The list goes on and on. Of course, these major projects will bring a diverse range of employment opportunities to the region.

Brisbane Market – Summary

Brisbane appears to be a great place to invest right now and certainly the fundamentals are in place for future capital growth. Of course, like all city regions, there are markets within markets, and not all suburbs are likely to perform equally. It is important to understand local drivers of both supply and demand to determine which pockets are likely to outperform the averages. Investors are encouraged to perform their own due diligence before jumping in to a new investment purchase. Brisbane is certainly set for growth, but some areas may be much better placed than others for maximum growth potential with the next property market upswing.  To maximize your chances of selecting the best areas to capitalize on the upswing, get in touch today.

 

Brisbane housing over the next decade – 2018 to 2028

Brisbane housing over the next decade – 2018 to 2028

The Brisbane City Council has a long-term community plan for the city called Brisbane Vision 2031. This details the aspirations in relation to Brisbane housing for our city’s future and outlines ideas for achieving this vision between now and the year 2031.

At that time, it is anticipated that Brisbane will be a well-designed, outdoor living city which maximises the lifestyle characteristics of our warm sunny climate. To achieve this, planning and development guidelines have been implemented by the Brisbane City Council, to ensure that our city prepares effectively for the population and employment growth that is predicted.

One of the targets that our city has set out to achieve includes accommodating 156,000 new dwellings to meet the anticipated population growth into the future. Of these dwellings, 138,000, or 88%, will be infill dwellings which will consist of Brisbane housing located within the existing urban area rather than in new greenfield locations.

Council manages the process of increasing housing density in the inner city areas by implementing plans and strategies to manage the development and construction of new dwellings. The Brisbane City Plan was implemented in 2014, and its purpose is to guide future development and growth for 20 years. We are already 4 years into this plan an we can already see the effects of changes to land zoning and the consequential development that has taken place in some suburbs. This plan will be reviewed periodically by council to ensure that is responds appropriately to the changes in the community at a local, regional and state level.

Council have also implemented 36 neighbourhood plans since 2006 which involved engagement with more than 400,000 residents. These plans assist with creating neighbourhood zones that their residents desire and involve planning at a more local level.

Knowledge of the plans that guide development in Brisbane is critical to determining the long term growth and development potential of any site. It is important to understand the planning schemes to determine if a house can be removed from a site, if a block of landcan be subdivided or if townhouses or units can be accommodated on a particular site. Planning tools which are accessible by developers, can determine the best use for any site across the city of Brisbane.

As always, feel free to contact us at Streamline Property Buyers if you have any Brisbane property questions.

Great Opportunities ahead in the Brisbane Property Market

Great Opportunities ahead in the Brisbane Property Market

There has been a lot of shock media recently about the property market crashing in Australia, including speculation that a housing market crash is already happening. But the reality is that Australia does not have just one property market. There are many property markets in Australia and each of those is performing in a different way, depending on local circumstances. This article will explore how the Brisbane Property Market is performing, and how the local property market performance compares with other property markets around Australia.

There is no doubt that the Sydney and Melbourne markets are overheated, but the Brisbane Property Market is showing solid performance. Capital growth indicators are not outstanding, but our local property values are not retracting. Brisbane’s median house price has just hit an all-time high which provides further support for our City’s reliable performance.

The latest Corelogic data shows residential property values grew in Brisbane (+0.9%), Adelaide (+1%), Canberra (+2.3%) and Hobart (+10.7%) over the last 12 months. At the same time other cities experienced declines with Sydney leading the way (-5.6%), followed by Darwin (-4%), Perth (-2.1%) and Melbourne (-1.7%).

The exciting part is that, in the housing sector, the Brisbane Property Market is very well placed for future growth, according to research. The most recent BIS Oxford Economics Residential Property Prospects Report (2018) has confirmed that the outlook for the Brisbane Property Market over the next 2-3 years looks very positive.

Brisbane is predicted to experience growth in house prices of 2-3% up until 2019/2020 and then a much greater spike in prices of up to 6% forecast for 2020/2021. This is great news for the Queensland Capital, which has lagged behind other big Cities for a few years now.

Remember there are markets within markets, so don’t always believe what you may hear. Even within the Brisbane Property Market itself, there are some markets that are not performing as well as others. For example, according to the BIS Oxford Economic indicators, units have been underperforming for a few years, and are expected to experience a further decline in value of between 2-3% per annum between now and 2020, before starting to recover with forecast growth of just over 1% in 2021.

So, for those looking to capitalise on emerging property market opportunities in the near future, it seems the housing sector within the Brisbane Property Market has a lot more to come. Real Estate in Brisbane is still affordable, and our great City offers a fantastic lifestyle as well. Just understand what to buy, and where to buy and you will be more likely to succeed in achieving desired capital growth. Now is the time to get set and ready to grow your property portfolio and take advantage of the good times that are ahead.

Melinda Jennison – 0413 907 573

How to determine if a home is in a demolition control precinct

How to determine if a home is in a demolition control precinct

Brisbane has a unique style of character homes that in most cases are now located in a demolition control precinct.  This means that a lot of older homes cannot be demolished or removed from their site.

Newstead House is the oldest existing house in Brisbane, according to council records, and this was built in 1846. Cottages from the colonial period can be seen in the inner suburbs of Petrie Terrace and Spring Hill and 19th Century housing occupies some areas within Paddington, Red Hill, Highgate Hill and East Brisbane.

The Federation-era then saw the construction of masonry homes as well as larger decorative timber homes in suburbs including Clayfield, Ascot, Hawthorne and Graceville.

However, the most typical style of home that is now located within the boundaries of a demolition control precinct is the classic Queenslander, which is characterised by the porch and gable style of home made from timber and tin.

Brisbane city council provides online planning tools via their website to help businesses and individuals to determine if a building is in a demolition control precinct or not.

Many homes that were constructed prior to the end of 1946 are categorized as pre-war homes, and generally they can be distinguished by their character features.

Many of these pre-war homes can be identified on the traditional building character overlay maps which are part of Brisbane city council’s online resources. What this means is that a home that falls within a precinct where the traditional building character overlay exists, cannot be removed. It is effectively in a demolition control precinct. These homes can be renovated to return them to their original character – just not removed from the site.

Not all homes constructed prior to or during 1946 are protected from demolition. Council have concentrated the traditional building character overlay in neighbourhoods where there are significant pre-war homes with character values in a condensed area. So, in some areas, a home may be a pre-war home, but if it falls outside of the traditional building character overlay map, then it can be demolished. Usually these properties are located in areas where there were not a lot of homes built in the area in 1946 or before so the pre war properties are not typical for the area.

In summary, it is important to know if a property falls within a traditional building character overlay because it has significant implications in relation to whether a property is located in a demolition control precinct, or if it can actually be demolished and removed from the site.

As always, please contact us at Streamline Property Buyers for all your Brisbane property questions … we are always willing to help.

 

Changes to Brisbane’s Planning Scheme – June 2018

Changes to Brisbane’s Planning Scheme – June 2018

In this article, I outline some of the key principles and actions that have been raised by our Lord Mayor Graham Quirk in his press release on Friday 8 th June 2018 in relation to Brisbane’s Future Blueprint, or how our development codes will change to accommodate the needs and the requests of residents here in Brisbane.

Many of the principles and actions defined by Brisbane’s Future Blueprint will have an impact on small-scale development in Brisbane. At this time, a lot of the details are not known. So, what I’m going to do is outline for you what we do know and then highlight the areas that we’re waiting to receive further information on.

The first is actually a positive in that one of the principles is that Council is hoping to achieve more green space. For small developments, they’re hoping to encourage more rooftop garden and terrace areas. The benefit of this is that Council are not going to count those areas as a storey when defining the maximum height for a proposed development. So that’s the positive impact that these changes will have for small scale development in Brisbane.

On a more negative note, there’s a few restrictions that Council will be enforcing which will inhibit the allowable development on certain sites. I’ll run through some of those now.

The first is that Council are going to stop townhouse and unit development on inappropriately zoned land. They’ve referenced “appropriately” zoned land as being medium-density land. We are not yet sure what impact will be had on low- to medium-density residential land zoning. So at this stage we’re watching very closely for the next updates to determine what effect this will happen on low- to medium-density (LMR) land.

The second is that emerging community zones may be reassessed and Council may be looking to rezone those as residential A to prevent mass townhouse developments from being accommodated on that emerging community land. Council will also look to preserve and maintain minimum setbacks from neighbours and boundaries, and this is going to be enforced in their development codes.

Additionally, we’re going to be seeing an increase in the requirement for deep planting on the site. Currently that’s 10%. That’s going to increase to at least 15%. Obviously this is going to impact on the development footprint, which ultimately will have effect on the yield.

Another significant area raised within Brisbane’s Future Blueprint that will impact on the development footprint is the requirement to increase the number of car spaces for a development. At this stage, the detail is unknown but we know that we’re increasing the car parking requirements we’re also reducing the potential yield for a site. So we’ll also be watching this area carefully to determine what effect this will have on the development yield for some of those low- and medium-density zoned sites.

That’s the update at this stage. As soon as more information about Brisbane’s Future Blueprint becomes available I’ll happily provide another update. I am consulting with town planners to get the most recent information to keep investors and developers informed of what’s actually happening so that we make sure that we can continue monitor the market for opportunities for our buyers in developing areas of Brisbane.

Melinda Jennison – 0413 907 573

Manufacture equity in your Brisbane Property

Manufacture equity in your Brisbane Property

Have you ever wondered what strategy will deliver the best financial outcome for you when you buy an investment property in Brisbane? Well here I am going to tell all … with some hints and tips that will deliver the results that you are after.

When we invest in property, we always have a goal in mind. Some people invest for a yield, or an income, whilst other people invest for the benefits that long-term capital growth can deliver.

The strategy that suits you, may not be the same strategy that suits others, so it is important to understand WHY you are investing in property from the outset.

If you have a specific exit point in mind, say for example 10 or 15 years, and your goal is to maximise the capital growth of your investment, then we have uncovered a capital growth strategy that will outperform many others when you buy an investment property in Brisbane. It involves a combined knowledge of property investment and property development and it capitalises on the emerging opportunities in certain pockets around Brisbane. If this interests you … read on.

If you are looking to buy an investment property in Brisbane, you need to consider areas where the population is growing fast, where infrastructure is emerging and where employment opportunities will provide for local economic stability. This ensures that the opportunity for long term capital growth is more certain.

But what if there was a way to manufacture even more growth … would this be something that interests you?

Well let me share some secrets. There are ways to lock in this type of opportunity for yourself. But it must combine looking at a property for what it is worth today, along with assessing the future potential value of a property to the next buyer. And this is where it is important to have a good understanding of the types of properties developers will buy in the future, based on the potential of the land itself, and considering that the property will not always be used as a single dwelling house on its own block.

Now I’m NOT talking about speculation. This is where you buy property on the basis that something “might” happen in the future. This is like gambling and I DO NOT recommend this strategy at all. What I DO recommend is understanding the CURRENT council land zoning and town planning requirements for a property so that the future intent of the area can be understood.

When you buy an investment property in Brisbane, and it is just a standard house on a block of land now, if it is zoned for a density that is a lot greater, then the future intent of that land is for higher density development. This is where the real value in a property investment can be uncovered. This is uncovering the “invisible” parts of a property that most investors would not think to check.

This is a strategy that only sophisticated investors are using.

At Streamline Property Buyers we have termed this “Strategic Property Investing” and many of our Clients are taking advantage of this type of opportunity right now. It requires very specific knowledge of council planning regulations as well as a thorough understanding of basic property investing indicators such as rental yields, vacancy rates, days on market and long-term capital growth.

Think about this strategy when you are looking to buy an investment property in Brisbane, and if you don’t have the skills to find these opportunities yourself, then get in contact with us today. We will find the opportunities for you.

Melinda Jennison – 0413 907 573