MEDIA RELEASE: BLIGH PULLING WOOL OVER FIRST HOME BUYERS

The State Government while assisting the ailing building industry to recover from partly self-inflicted poor economic and political conditions, Premier Bligh and Treasurer Frazer is pulling the wool over the eyes of First Home Buyers.

Despite the seemingly generous increase in first home buyer grants and concessions in the new building market, first home buyers should be aware of higher building costs and steady market price conditions that may cause an unfavourable net saving to the buyers over buying existing homes.

Rapid Realty Townsville’s Principal, Aaron McLeod is encouraging first timers to carry out proper due diligence before buying property and consult with their solicitor, finance broker, accountant and real estate professional.

New homes purchased 2-3 years ago being sold again today as existing homes are fetching discounts of up to 10-15% while the general market has seen a more modest easing in median prices.

Existing housing sellers, landlords and buyers will be worse off under the State Budget 2011-2012 announcements, while the new building sector should experience increasing enquiries and sales due to these changes.

It is true however that Townsville’s First Home Buyers have exercised resurgence to the property market since the Queensland Government announced changes to first home buyer grants and transfer concession rates in the State Budget 2011-2012.

Housing finance data released last week by the Australian Bureau of Statistics (ABS) for May 2011 shows that as a proportion of all owner occupier finance commitments, first home buyers accounted for just 15.4% of the market.

During the month of May there was a 17.2% increase in new home loan commitments by first home buyers across the Country from the previous month (RP Data Property Pulse, July 2011)

Rapid Realty Townsville Principal, Aaron McLeod said; "Like the increases in national statistics, first home buyer enquiries in Townsville have increased since the grants and concession rates were announced in the State Budget 2011-2012.

These changes take affect from the 1st August 2011 and are designed to encourage first home buyers into building a new home. Both the building first home buyer grant and concession rates will improve while concession rates for the first home (non building) grant will be abolished and transfer duty concessions will increase.

The Federal Government's $7,000 first home buyer grant will be available for both new building and existing new home buyers.

This is another strong case for "buyer beware".

Townsville Real Estate Blog
www.rapidrealty.com.au

REAL ESTATE BUYERS STIMULATED BY RATES

MEDIA RELEASE

The Australian Economics Weekly published last Friday by the ANZ Bank reports that the RBA is not expected to raise interest rates before early 2012 due to slowing growth in the economy, particularly jobs growth. In fact a possible interest rate fall has been factored in by the markets.

Rapid Realty welcomes the forecast reduction in interest rates. It stimulates buyer enquiry in the property market. A sustained reduction in the cash rate could see broader buying activity as households adjust their financial risk appetite and adopt a more confident outlook. Buyers should keep an eye on the interest rate scenario to detect a trend indicator for the inevitable return of positive growth in property demand.

With a predicted rebound in economic growth in 2012 of 3.3% from the current growth pattern of 0.9%, Townsville's Real Estate buyers and investors may have 6-12 month window to make their property investment decisions if maximising capital growth opportunities is the investment driver for buyers.

To stay in touch with the Townsville Property Market, contact one of our licensed agents at www.rapidrealty.com.au

WILLOWBANK 4 BEDROOM FAMILY HOME

31 GUILFOYLE CIRCUIT KIRWAN

Located within walking distance to the Willows Golf Club, 5 minutes to Willows Shopping precinct and Dairy Farmers Stadium, living in peaceful enjoyment within a modern community development in your own beautifully presented home is more then a dream when you see this 4 bedroom home for yourself.

Whether you are a true home buyer or astute investor, this property has lots to offer a growing family with:

* 4 bedrooms all air-conditioned
* Large en-suite bathroom to master bedroom and walk in robe
* Built-in robes to guest bedrooms
* Cathedral ceilings with split air-conditioned to living
* Modern kitchen with large corner panty
* Tiled floors throughout
* Tiled entertainer patio off kitchen and living areas
* Remote double lock up garage
* Security screens
* Side vehicle access
* Room for a shed
* Walk to golf course, parks and bus service

Currently tenanted on fixed term til August 2011. Contact Aaron on 0414 590 110 for a viewing today.

A sustainability declaration is available upon request.

Potential Unit Development Site - Large Block with 3 Bedroom Colonial Style House

190 BOUNDARY STREET RAILWAY ESTATE - AUCTION ON SITE 6TH AUGUST 2011 4PM

Located within 5 minutes to the proposed Cruise Ship development, City, restaurants and cafes on Palmer Street, shops and schools, this large mixed residential zoned block offers an excellent investment and multiple unit development opportunity.

The property includes a 3 bedroom colonial cottage house featuring:

• Large homestead veranda
• Polished timber floors
• Renovated kitchen and bathroom
• New carpet in bedrooms
• Fresh paint throughout
• Air-conditioning to main bedroom
• Internal laundry
• 2 car carport
• Fully fenced
• Established gardens

The property is currently tenanted til October 2011 yielding a gross return of $18,200 PA.

Contact Aaron on 0414 590 110 to arrange an inspection.

A sustainability declaration is available upon request.

4 x 2 Bedroom Executive Investment

50 QUEENS ROAD HERMIT PARK $750,000 Neg

Located within 5 minutes to the City, 2 minutes to the Hermit Park Shopping precinct, this block of four 2 bedroom executive flats offer a premium investment opportunity currently returning a combined gross rental of $59,280 PA.

Already configured for possible strata development, each flat offers modern and bright fittings with built-in wardrobes, spa bath and two way bathroom, split air conditioning throughout, arch ceilings and bulk heads upstairs, kitchen complete with electric stove and oven, open plan living and dining, combined patio/deck and laundry and feature security screens and fans throughout.

Each flat is accessible by security door and screens. The top two flats, with private balcony and deck, are accessible by internal polished timber stairs. Carports, storeroom and laundry with dryers are features of each flat also. The property is landscaped with garden edging and irrigation, fully fenced with security gate at the front driveway which is hard stand concrete to the carports located at the rear of the block.

An excellent opportunity for the astute investor, this premium set of flats present a solid rental return and an asset in very good condition to maximise your net earnings with capital growth potential.

• Block of four 2 bedroom executive flats with spa bathrooms
• All feature 2 bedrooms, 1 two-way bathroom, 1 car accommodation and storage
• Opportunity for new owner to strata title
• Currently returning gross rental of $59,280 PA
• 809 sqm allotment, 317.44 sqm under roof area, 69 sqm carports and 54.4sqm outdoor
• Close to transport, parks, shopping precinct and 5 minutes to City

A copy of the Sustainability Declaration is available upon request.

Contact Aaron on 0414 590 110 for more information.