Higher Agent Commissions Coming; Real Estate Industry Streamlined

The Property Agents and Motor Dealers Act (PAMDA) 2000 has been repealed and replaced with two new pieces of legislation separating the real estate industry from motor dealers and chattel auctioneers.

The new pieces of legislation are; Property Occupations Act 2014, under which Property Agents and Auctioneers will be regulated, and Motor Dealers and Chattel Auctioneers Act 20014 under which Chattel Auctioneers including Motor Dealers will be regulated.

Agent commissions under the new legislation will be deregulated meaning Agents can charge an unlimited commission where a Client and the Agent can agree. A cap on Agents commission of "5% for the first $18,000 then 2 1/2% thereafter" will become redundant.

Principal of Rapid Realty Townsville Aaron McLeod said, 'Agents are unlikely to change the rate of their commission for services in the first instance because it will take some time for the market to adjust to the new pricing culture. The consumer market for real estate services is expected to show some resistance, despite the fact that Agent fees have not changed in decades.", Mr McLeod said.

Mr McLeod commented that "most Agents will not change their commissions including our Agents but residential sales of multiple dwellings and prestige property sales would most likely come under review with higher commissions being charged by Agents due to the comparable risks involved in these types of transactions."

The new legislation also streamlines the amount of forms needed to complete property sales, letting and property management. The Appointment of Agent form now will replace seven existing forms, providing administrative relief for both Vendors and Agents.

The Warning Statement (Form 30c) will be removed altogether but a simple statement placed in a conspicuous position where the buyer signs the contract will be acceptable.

The current lawyer’s certificate form to waiver or shorten the cooling off period in the current legislation will also be removed.

Property Developers needing a specific licence under the current law will be deregulated, while pastoral houses will be included into other licence categories. Residential letting agents will be able to manage multiple sites and the application will be integrated with other real estates.

Business sales will no longer need to state an end date on the agreement for a continuing appointment. An open listing may be ended by any party at any time in writing.

The Queensland Office of Fair Trading being the department that administers and enforces the legislation and regulations have conducted extensive consultation with industry leaders and institutions such as the Real Estate Institute of Queensland.

REIQ chairman Rob Honeycombe said, "The simplified laws would deliver important benefits for both real estate professionals and consumers. He also said, "The Property Occupations Act and other associated legislation passed today (May 2014) wold cut red tape and make it easier to buy and sell real estate throughout Queensland."

Agents will no longer be required to disclose their commissions to the buyer of real estate, as it has been under the current legislation.

The real estate industry anticipates the new legislation to be effective from October 2014 with a moratorium for Agents having to update their practices and procedures.

References:

Office of Fair Trading – www.fairtrading.qld.gov.au

REIQ – www.reiq.com.au

Rapid Realty Townsville – www.rapidrealty.com.au

Farm a Queen Bee; Reserve Bank Board Membership Genius

Townsville and regional economies in Australia have specific and contextual demands impacting on cash flow and capital opportunities, risks and constraints and it must be acknowledged by Australia's political leadership and fiscal policy makers.

In the scope and context of Australia's economic contributions, regional Queensland's economic activity is a significant measure on the Reserve Bank's agenda in setting monetary policy and cash rates that regulate investment decisions and therefore business and consumer confidence.

Townsville Real Estate Blog supports the approach by local Townsville and Regional Queensland economist Colin Dwyer to the Prime Minister, Tony Abbott, Treasurer Joe Hockey and RBA Board to appoint the next Board Member from the pool of capable intellectuals and professionals from our region.

In the words of local economist Mr Colin Dwyer:
  
Regional Australian Member of the RBA Board

 It’s interest rate day today, and its time to prosecute a case for a regional Australian to become a member of the Reserve Bank Board. Not one of the nine members of the Reserve Bank board lives in Regional Australia. Not one of the past members of the monetary policy making body has ever lived in regional Australia. How can the RBA board make a decision on behalf of all Australians if they haven’t experienced the conditions in some of those locations?

Regional Australia comprises a third of Australia’s population, contributes most of its exports and many of its tourism destinations. In the past decade regional Australia with its mining industry kept recession and depression from Australia’s door. Its time for some regional Australia recognition.

I first raised this issue in 2010. Next year will be the first chance for a regional Australian to join the RBA board and express regional Australia’s rational expectation regarding monetary Policy and interest rates. In December 2015 Roger Corbett’s position comes up for re-election. Following that Catherine Tanna’s position is available on 29 March 2016, followed by John Akhurst role on 30 July 2016. Two other positions become available in 2017.

In total there are nine members of the RBA board with six non-executive members appointed by the Treasurer. The non-executive members are appointed for terms of up to five years. There is no limit on the number of terms a member may serve.

Are all the previous federal governments saying that there is no regional Australian who has the calibre to be appointed to the board? Next year, surely presents an opportunity for the current federal government to change this value judgement, honour the contribution of regional Australia and ensure regional Australia has a say in monetary policy decisions.

There are many worthy regional Australian contenders for this challenging role and some of them live in Townsville including, Company director Russell Laird, James Cook University Deputy Vice Chancellor Chris Cocklin and Chamber of Commerce president Stephen Moti.

After contributing our fair share over the past half century, its time a Townsville and regional Australian resident was appointed to the Reserve Bank Board. Only this way can a third of Australia’s population be confident that monetary policy decisions are including them.

The economic scorecard for Townsville and much of Queensland's regional economy certainly warrants unprecedented action from our political and business leaders. RBA Board membership is one positive step in a progressive Asian-centric trading zone in which Australia finds itself deeply entrenched.

Townsville is currently experiencing the highest unemployment rate at approximately 10 percent in the State and the property investment and accommodation economy is trending in negative territory with high vacancy rates and a notable decline in new mortgages being written by lenders.

Townsville Real Estate Blog will report on the specific factors our team believes has evolved contributing to the current property investment and accommodation economy in Townsville. Watch this space and visit our previous articles as follows:

North Queensland Strata Rental Market in Eye of Perfect Storm

http://townsvillerealestate.blogspot.com.au/2013/12/north-queensland-strata-rental-market.html

Lead Indicators for Townsville Property Market

http://townsvillerealestate.blogspot.com.au/2013/08/lead-indicators-for-townsvilles.html

Time to Wake up and Smell the Roses; Queen Bees are Being Born

http://townsvillerealestate.blogspot.com.au/2013/03/time-to-wake-up-and-smell-roses.html

Townsville and Central Queensland's property market is experiencing significant challenges on the back of high unemployment, mainly due to misdirected, and perhaps in hindsight for the State government, unintended consequences from policy commitments aimed at remedial budget and economic measures. Many proponents believe these measures are excessive! Political judgement in the context of current sensitivities could cause political damage at the ballot box with a change likely in local representation.

Further uncertainty and policy risks to business from political instability is unwelcome developments in light of the most recent Stafford State bi-election in the northern suburbs of Brisbane. The appointment of a Townsville-based Reserve Bank Board Member could bring both strategic and practical benefits to the region where federal policy influence on military, research, education infrastructure is sustained by federal budgets.

Townsville Real Estate Blog supports Mr Colin Dwyer's insights and respect the foresight of such an important appointment impacting on regional monetary policy, which could also influence like never before, the formation of fiscal policy by incumbent and future governments.

Media Release: Local Agent Head On with Foreign Franchises

Townsville's sporting community is proud of our local teams winning on a state, national and international stage be it the NQ Cowboys, Townsville Crocs, Townsville Fire or Queensland’s record breaking State of Origin team.

Well it's no different in the real estate game with locally founded company, Rapid Realty Pty Ltd (Australia) approaching the playing field with a feeling of pride and determination, taking on the foreign franchises head on with its own style of marketing, education and auction extravaganza events.

Townsville's own real estate franchise, often recognized by a "big red man" on 2.4m high signs around the streets of Townsville, was established in South Townsville in 2007 by two brothers with one employee.

Now employing a team of six staff, over 20 regular contractors and an alliance network of finance, legal and planning professionals with a "standout brand" delivering real estate sales and property management services across North Queensland.

"The innovation of our team to design and deliver a solid brand, practicing values of integrity, quality and service efficiency in a combined property education and trading event is remarkable; Rapid Realty's Founder and Managing Director, Aaron McLeod said from his Kirwan home.

Mr. McLeod commented; this marketing initiative is consistent with our "real service, rapid results" commitment and is a reflection of the passion, gutsy and try-all attitude of our people to exceed client expectations. Our clients want “rapid results” but not at the expense of fair prices, so achieving a sale within 8 weeks 90-95% of the time is a quality outcome.”

Rapid Realty is seeking more local people to aspire and share in the values and growth plans for the company, firstly in North Queensland and then across Australia. With the real estate industry and property market on the verge of recovery in 2014, enquiries from aspiring real estate professionals wanting to enter the industry is picking up, Mr. McLeod reported.

Helping the community with education and achieving great sales results for clients through the "learn and earn, one-stop-shop" initiative is a win win outcome in a competitive real estate market in Townsville.

More often than people may acknowledge, the corporate business gives to the needy in the community with sponsorship or donations. In kind, people going through the pain of divorce, deceased estates, financial stress forcing a down grade or disposal of a property are all reasons an agent helps distressed customers with no financial gain. The client’s freedom to decide to sell is withdrawn for legal, emotional or economic reasons.

Providing free expert opinion and no obligation information is invaluable to the community needing the freedom of choice and movement. Learning and earning is an essential community need for personal growth and economic prosperity.

Being a real estate agent today is about "giving, not taking"; Mr. McLeod said. The mantra of giving and helping is a soft approach to selling. This has seen the company’s earnings increase 20% per year since Rapid Realty was launched in 2007. With their headquarters to remain in Townsville, the "learn and earn" initiative creates perfect synergy with all levels of investors needing to research before they buy.

Supporting a true local agent means the Townsville community benefits from employment opportunities, capital investment and profit reinvestment, as well as in kind knowledge expertise with genuine interest in caring for people. That’s the Rapid Realty way and point of difference from foreign franchisers, Mr. McLeod stated.

Ready for further development and expansion from its Townsville home, Rapid Realty is presenting their marketing talent this Tuesday 25^th Feb at the Master Builders House on Sturt Street showcasing the "learn and earn, one-stop-shop" property investment seminar and auction extravaganza.

There are limited seats available so registrations will be necessary. If you want to support this Townsville company, register rapidly at www.rapidrealty.com.au or call their office on 4771 3600.

North Queensland Strata Rental Market in Eye of Perfect Storm

Herron Todd White's Townsville Vacancy Rates Report, November 2013 shows the unit market is under critical strain and worthy of short term intervention from policy makers and general protest from investor groups and many thousands of owner occupiers.

Local, state and federal governments have been acutely aware of the cost pressures being felt by North Queensland property owners, particularly in the strata unit market, who by and large are first home buyers or elders in their twilight years of retirement, due to un-costed climate change policies, back flips and innuendo by previous governments and left wing lobby groups leading to an environment fit for power brokers in the insurance, energy and public taxation sectors to gouge profits.

Could a plan of fleecing struggling North Queensland property owners of their hard earned money while masquerading as energy suppliers, climate protectors, climate risk adjusters and dare I say it humanitarians be the intention of our domestic and global leaders?

It seems the balance of social and economic policy has gone too far and now the North Queensland strata unit market is the warning signal. It is a barometer of market economists and investors tracking the perfect storm hitting North Queensland strata property owners in the hip pocket.

The demand in the strata unit market in Townsville continues to feel the strain of government housing initiatives moving welfare or means-tested battlers into affordable housing schemes such as the National Rental Affordability Scheme (NRAS), defence housing moving to build and acquire more exclusive housing stock for military personal, a crack down on non compliant government funded housing tenants being pushed onto the private housing sector or distressingly into temporary shelters.

In addition, the broad base of demand from government and engineering industries have less economic support with higher unemployment figures which sits at 7.0% in Oct 2013 (ABS Labour Force Survey Data) in the North and North-west Queensland region.

Recent increases in the cost base for strata units such as higher levies driven by insurance, energy and local council charges (mostly driven by justifiable weather event and asset life cycle risks) has caused less discount affordability for owners to reduce rental prices while bearing the loss of more vacancy days at historical prices.

Townsville's rental vacancy rate for strata units stood at over 6.5% in Nov 2013 up from the record high of 5.5% in August based on Herron Todd White's Rent Roll Survey. Although many people have left the city for work, breaking their leases in the process, others have become an owner occupier while mortgage rates are at record lows. But many people are being drawn out of the rental market by the government funded NRAS.

Increasing rental prices therefore have come to a stop in 2013. In fact medium rental prices for houses have dropped by $10 per week while strata unit prices have not changed. Is this steady unit price due to strata unit holders having less timely control on cost adjustments while being impacted by increased costs to insurance, energy and government charges? The evidence seems to suggest yes!

Townsville Real Estate Blog believes the increasing cost base for strata unit owners and dwindling demand driven by unemployment and government funded schemes is creating a challenging period for Investors.

Prices in both the new and existing unit market has reduced over the past 12 months by $15k and $22k respectively. An increasing number of existing units have come onto the market for sale in the past few months suggesting more strata unit holders are exiting the market. The combined price discounting in both units and houses, the market is ripe for buyers seeking an entry point to the market with lower interest rates and capital city prices and demand increasing substantially over the past 12 months.

With approval of the Abbott Point Coal Loading facility by the Federal government and increasing tourism and construction expenditure, Townsville's residential property market cycle is set for recovery with local economists predicting a property "pulse" in 2014.

Townsville Real Estate Blog also believes 2014 should see a surge in demand with further sideways movement on prices early until existing supply thresholds are exhausted and demand again drives price increases off the back of growing capital city confidence, employment improvements and a slide in government funded residential housing initiatives. But the extent and timing of the recovery will also depend in no small part on the policy makers and global climate risk adjusters suspending their appetite for profit making in the strata unit market, which is traditionally placed at the most affordable spectrum in the property market.

Landlords need not be alarmed for the medium to long term as demand should improve driven by government and private investment confidence, capital projects such as Abbott Point, public infrastructure funding, and restructuring of government business models, returning robust economic activity to small to medium size businesses.

For North Queensland property owners, it's the policy makers and influencers driving costs to insurance, energy and government charges that pose the greatest risk to their short term wealth and lifestyle planning objectives.

For specific real estate advice, services and solutions, don't hesitate to contact the author with your comments. Real estate specialist and this Blog sponsor is www.rapidrealty.com.au

References:
Townsville in Focus Report, Nov 2013
Australian Bureau of Statistics Labour Force Survey Data

Local Real Estate Agency Launches National Business with Commemorative Wine Label for Charity

Townsville's own national real estate agency, Rapid Realty Australia, launched a smart and innovative wine label on Melbourne Cup..."the day that stops a nation", in aid of local charity organisation Cootharinga North Queensland.

The launch of Rapid Realty Australia's wine label also commemorates a Townsville founded real estate business with both a North Queensland and national growth strategy. Rapid Realty Australia is seeking to grow its national foot print with a network of affiliates, partnerships and franchise offices starting in Cairns, Townsville and Mackay.

Managing Director of Rapid Realty Pty Ltd and Principal of Rapid Realty Townsville, Aaron McLeod said; "we are proud to launch our new limited edition wine collection in support of a well deserving local North Queensland Charity. The launch also coincides with Rapid Realty Australia's launch of its national real estate business on the Australian real estate scene."

Founded by two brothers in Townsville in 2007, Rapid Realty Townsville has grown to over 200 residential and commercial properties under management and over $20M in sales last financial year alone. The business has grown nearly 40 percent in the past 12 months. The office headquarters is located on Boundary Street, South Townsville. From this office, Rapid Realty Townsville services Townsville including rural areas and parts of the broader North Queensland market.

The business was established in Townsville and grown successfully because of our passionate and skilled staff and the welcome support of our "locally grown" business. Our clients have said how excited they are to support a national real estate brand created in Townsville.", Mr McLeod said.

Each of Rapid Realty Australia offices will be modelled on the Townsville one-stop-shop model to service real estate buyers, investors and sellers from the "cradle to the grave"; Mr McLeod said. Property owners and clients alike trust the professional approach and "real service, rapid results" customer service commitment.

Rapid Realty is seeking the support of the Townsville and North Queensland community as they search more good employees and contractors and leaders and investors to join the company as affiliates, partners or franchisees. Critical to the continued growth of the company is skilled salesperson's, property managers and marketing administrators.

Expressions of interest to join the Rapid Realty Australia business can be done by contacting Mr McLeod at www.rapidrealty.com.au

Townsville Born "My Property Time Blog" Launched for Investors

Townsville's leading independent real estate Principal and Managing Director of Rapid Realty Australia and Trustee of McLeod Investments and Consultancy (MCINC) firm, Mr Aaron McLeod has launched a new website blog called My Property Time.

Mr McLeod said; "the new website will be administered in North Queensland. It will be a public meeting place like the old bookstore and library with a social atmosphere where useful stories can be told and collaborated."

Mr McLeod expects the My Property Time blog reflects the knowledge and experience of his team of business owners and employees including property managers, real estate professionals, financial planners, mortgage brokers, solicitors, etc. to help new and emerging property investors to achieve success and avoid the many hidden costs and pitfalls of property investing.

From the My Property Time Blog:

Welcome to the new My Property Time Blog created to help investors and property owners with the joy, and dare I say it, the sadness of property ownership. We hope My Property Time adds value to our readers' efforts whether you might be researching, observing or actively investing in real estate across Australia and the world.

My Property Time will source pertinent and trending stories on real estate and property markets impacting investors. Whether you are experienced or new to the property investment industry, this blog aims to be useful for all interest groups. However, My Property Time's target audience and focus by and large will be active investors.

Although some of you may never become an active investor, or at least identify yourself as one, it is this group of people who are more likely to benefit from the My Property Time blog.

Being an active investor means you have an acute need for reliable, pertinent, trustworthy, accurate and timely information and facts about legislative changes, niche market trends, hints and tips on selecting a mortgage broker, real estate professional, property manager, conveyance specialist or even building and pest inspection reports.

Investing in real estate for cash flow, capital gains or tax minimization purposes needs to be purposeful, and often most effective when linked to specific goals. The delivery of investment measures and strategies are constrained by various risks while opportunities are realised more often when the investor has clear investment plans and specific goals.

Almost all successful investors understand these risks, opportunities, strengths and weaknesses, often referred to the SWOT analysis. So if you are a first time investor reading this blog on your mobile device or office PC, understanding the keys to successful property investing is understanding your goals, establishing a clear investment plan, identifying your constraints, risks and appetite for loss or gain, and minimising your assumptions while having the courage and decisiveness to secure your first investment property.

As a first time investor, if this is your situation, you can feel a sense of comfort knowing that My Property Time is at the beginning of your journey, just as this blog is at the beginning of our journey. We hope you have discovered this blog and we share My Property Time together.

As an experienced investor, we trust you can make My Property Time one of your favourite sites to gain knowledge and information but also share your extensive knowledge with our supporters and our team.

So as an opening introduction to our purpose, investment planning, risk management and decision-making is a prelude to what our opening series of stories will cover. Once again, welcome to My Property Time and we look forward to making a small difference in your life. My Property Time is your time!

You can visit the new My Property Time Blog at http://mypropertytime.wordpress.com/

LEAD INDICATORS FOR TOWNSVILLE'S PROPERTY MARKET

Herron Todd White's Townsville Rent Roll Survey Report for July 2013 paints a picture of rising rental vacancy rates to 3.75%. The reality of a slowing economy is evident in these figures as Townsville is experiencing a short term oversupply of unit and housing accommodation.

Landlords and investors are advised to factor into their budgets more days on market while their properties are being tenanted. It could also impact on the rental prices in the market as investors compete for lower vacancy time by discounting prices and even offering incentives to customers.

 

Rapid Realty Townsville Principal, Aaron McLeod said "we have planned for a slowing economy by offering higher exposure for our Landlords with feature advertising, more diligent presentation of properties and enhanced focus on "real service, rapid results" in our customer service. Responding quickly to enquiries and receiving owner instructions rapidly is the key to securing desirable customers", Rapid Realty's Principal said.

The increased vacancy rates could be impacted by the supply of new houses on the market continuing while a noticeable drop in demand had occurred leading up to the end of financial year. Lower interest rates on borrowings are making home ownership more affordable, causing some renters to be lured into home ownership by the construction sector offering incentive packages in addition to the State Government's construction home owner's grant.

Rapid Realty's Principal said, "our Townsville office is fielding enquiries from buyers for our newly constructed properties for sale with excellent packages for buyers."

Moreover, Rapid Realty expects the demand for accommodation to increase in August based on seasonal inflows of enquiries to their Townsville office.

If you have an investment property and want expert property management and rentals advice, you can contact Rapid Realty at www.rapidrealty.com.au

RAPID REALTY LEADING "BUSINESS VILLAGE" INITIATIVE

Rapid Realty Townsville invites our business connections, customers and public to the Townsville Trade Show being held at the Heatley Primary School on Fulham Road this Saturday 20th June 2013 at 2pm.

The Townsville Trade Show (TTS) is a compilation of business professionals displaying their services and solutions to clients, customers and acquaintances in a "traditional village" setting. This business village is open to all members of the public.

The TTS is sponsored by Business Network International (BNI) members bringing together essential business services and professionals in real estate, financial planning, loans, accounting, law, construction, insurance, painters, carpenters, electricians, etc. in this relaxing and intimate village environment.

 

With the support of local Members of Parliment, business leaders, existing clients and customers, Rapid Realty is expecting a great launch to this new and innovative way of connecting with the community.

 

"The explosion of social media and mobile technology in a modern community fearful of personal contact on the phone or the traditional door knocking that real estate professionals are used to makes this event unique and non-threatening." Rapid Realty Managing Director said.

 
Rapid Realty Townsville looks forward to seeing our friends on the day. Please register your interest in attending by contacting us via www.rapidrealty.com.au.

Time to Wake up and Smell the Roses Townsville Real Estate; Queen Bees are Being Born

Townsville’s Real Estate economy is on the cusp of renewal and regeneration after an extended period of hibernation, passive demand and external uncertainties, a leading independent North Queensland Real Estate Principal said.

Mr McLeod of Rapid Realty Australia and Director of McINC Investments and Consultancy said, “Consumer confidence indices have been improving over many months which suggests that lower prices and retail discounting is stirring the end consumer to feel they have more bang for buck. “This sentiment has been evolving in the non-discretionary spending sector such as accommodation and housing for many months”, Mr McLeod said.

“Leaders in our North Queensland headquarters in Townsville have reported that prospective tenants and buyers for that matter are asking to negotiate prices down more frequently and with more depth suggesting consumers have a higher expectation that prices could be discounted”, Mr McLeod said.

This is also reflected in the Melbourne Institute’s Consumer Sentiment Index which reports that sentiment has increased by 2.0% over the month to 110.5 points which is its highest level since December 2010 (111.0 points). The consumer sentiment index has increased over six of the past seven months and is up by 12.6% over the past six months.

Each component of the index except for time to buy a major household item rose over the month and only the index which measures family finances over the past 12 months is showing higher levels of pessimism than optimism. RP Data Property Pulse, 15/03/2013.

For the first time in nearly a decade, the Townsville rental vacancy rate has bounced over 3% to 3.14% in February 2013, HTW Rental Vacancy Survey, Feb 2013.

For many in the industry this is unprecedented and could typically put downward pressure on rental accommodation prices if sustained. However, Mr McLeod believes this anomaly will be short lived and should improve for investors as North Queensland, and Townsville particularly, traditionally has a seasonal movement of consumers out of accommodation in November and December and January. Accommodation is now being filled with new arrivals and streetscape changes occurring.

"The imbalance in the depth of this movement of consumers through December, January and February 2013 out of the economic zone could have been affected by delays in the State government’s placement of employees in the health, education and infrastructure-related departments, following the Campbell Newman government’s announcement late in 2012 of job cuts in this sector”, Mr McLeod said.

By contrast, the Australian Bureau of Statistics (ABS) released the January 2012 housing finance data this week. The data revealed that the number of owner occupier finance commitments fell by -1.5% over the month with non-refinance commitments falling by -1.9% and refinance commitments -0.7% lower. Year-on-year, non-refinance commitments are -0.8% lower than last January while refinance commitments have recorded a much greater -10.0% fall.

The total value of housing finance commitments rose by 2.4% over the month with investment finance commitments increasing by 4.4% and owner occupier commitments increasing by 1.3%. Year-on-year, the total value of owner occupier finance commitments has fallen by -0.5% however, investment commitments have seen a significant increase of 18.6% as reported by the ABS. The increase in investor finance compared to domestic finance is a significant measure of consumer-centric investors’ finding confidence in a more favorable property market, improving global economic data from the United States, Asia and Europe on our domestic equities markets expanding.

The Melbourne Institute Consumer Sentiment Survey identified 21.3% of respondents felt that real estate was the wisest place, down from 24.0% last quarter to invest over bank deposits, shares, paying down debt, etc. The proportion of loans to first home buyers was at its lowest ever level in Queensland (10.4%) over the month.

“The gestation period for consumer-centric investors as confident buyers has been long coming over the past four years since the housing market peeked, and with a cultural effect from consumers becoming comfortable with retail price discounting, now is the time to “wake up and smell the roses” before the Self-Managed Superannuation Fund and experienced and astute investors pick the early blossom in the Townsville real estate market”, Mr McLeod said.

So when could be the best time to pick the right property?

At a micro level it is impossible to pick the perfect day. The lead indicators are in place to act within the next 6-12 months because the number of competitive buyers with consumer-centric needs (owner-occupiers) should be in less demand. Although not the only lead indicator of owner-occupier buying behaviors, the higher rental vacancies rate over 3% in December 2012 suggests a historical correlation of lower domestic demand by owner-occupier’s could be occurring in the next 6-12 months.

We did see a contrasting behavior by owner-occupiers later in 2012 as Townsville welcomed the 3^rd Army Battalion approximately 6-12 months before as rental consumers. Demand indicators showed lower rental vacancy rate at around 2% during March and April 2012.

A sustained improvement in investor and business confidence could play out in the Townsville economy after the Federal election is held in September 2013, by which time State Government infrastructure spending, institutional, SMSF, private equity and development investor’s may also ramp up the flow of capital on the back of lower domestic interest rates and a global financial recovery.

In the meantime, a residual demand of owner-occupiers seeking to upgrade, downgrade and street change, and those economically resilient consumers with residual wealth and a growing institutional investor market should see property prices be maintained over coming months in the Townsville residential market.

Data Source:

Rapid Realty Townsville Vacant Rates Data, Feb 2013. www.rapidrealty.com.au

Australian Bureau of Statistics
Westpac and Melbourne institute Consumer Sentiment Survey
RP Date Property Pulse, February 2013
Herron Todd White Townsville Rental Vacancy Rate Survey, Feb 2013

TOWNSVILLE "HOTSPOT" FOR SMSF INVESTORS

Self-Managed Superannuation Fund (SMSF) investors have increased their enquiries and interest in Rapid Realty's new construction and "off the plan" houses and units in Townsville.

Since the property market has shown signs of a turn around and legislative changes to SMSF entities have been proposed pertaining to the discount of capital gains tax, the phone has been ringing off the hook, said Rapid Realty's Sales Representatives.

The main driver for the increased interest from SMSF is opportunistic. The positive buy status in "turnkey" and "off the plan" property, and to a less extent 2nd generation property, is finding the right time to buy.

By and large investors are finding today's conditions that tick all the boxes in terms of more upside then downside risk in the tried and true bricks and mortar of real estate.

The dream of building a retirement nest egg with less risky market conditions in terms of the:

· upside in accommodation demand and relatively low vacancy rates

· favourable lending products in fixed interest borrowings

· likely positive capital growth over the medium to long term

· cash flow performance being favourable, and

· great taxation incentives on capital gains tax

makes the Townsville housing market a "hotspot" for investors.

Aaron McLeod, Principal and Managing Director of Rapid Realty Townsville said; "SMSF Investors are seeking confidence and credible support and service in the research data, purchase and ongoing management of their property asset."

 

Mr McLeod believes semi-retired investors are worried about the financial risks off the back of the GFC and the concerns about having poor quality tenants in their superannuation nest egg investment. It is our job to disclose all the facts and build confidence for investors so they need not worry about finding and retaining quality tenants, Mr McLeod said.

With the "one-stop-shop" of services in buying, asset management and selling, Rapid Realty with its commitment to "real service, rapid results" is attracting serious investors and a loyal client base in this sector of the market, Mr McLeod said.

 

As an active member of Business Network International, Rapid Realty Townsville can assist with bono fide contacts in North Queensland that can provide further information for investors.

http://www.bni.com.au/Member_Details.asp?mem_id=168122

 

Investors are encouraged to seek independent advice from their professional team of financial planners, wealth advisors, solicitors and mortgage brokers.

Go to www.rapidrealty.com.au for more information about specific new and existing investment properties in North Queensland.

RBA CUTS INTEREST RATES: TOWNSVILLE LOCAL PERSPECTIVE

The Reserve Bank of Australia (RBA) has cut the official interest rate by .25 percent to 3.00 percent today bringing welcome news to home buyers and home owners.

The real estate sector, housing industry and property investors alike have anticipated a drop in the cash rate as the economy adjusts to increased prices in products and services impacting the property industry as a whole and moderate growth in revenues.

Townsville’s economy has a broad base of industry and government; defense, mining, engineering and agriculture which has supported modest growth in rental accommodation prices driven by increased holding costs and the injection of the 3^rd army battalion to the City early in 2012. Vacancy rates that were published by Herron Todd White in October 2012 have shown an increase in vacancy rates to over 2 percent.

Rapid Realty’s monitoring of prices and volumes suggests that housing prices have been steady across North Queensland with volatile fluctuations from street to street. Similar or slightly lower transaction volumes have occurred in 2012 compared to 2011.

The combination of higher vacancy rates in the rental market, which may reach 3 percent by 2013, together with very affordable house prices that many commentators are saying is bottoming, means that we may have arrived at the most favourable buying conditions for investors in the current property market cycle.

Positive economic news out of Asia and the recovery of USA housing prices and volumes could stimulate more positive news from global markets, and stem the tide of negativity that has dogged markets in our region since the start of the Global Financial Crisis (GFC).

 

State budget corrections and the emerging "policy cliff in Canberra" where the federal government is seemingly persisting with a budget surplus is further risk to the confidence factor in property markets.

 

North Queensland is not insulated from these macro-economic factors by all means, but the local economy has demonstrated positive resilience in the past.

The RBA decision today to reduce the cash rate is further incentive for buyers and investors to enter or expand their exposure to the property market in North Queensland.

 

Trusting the banks to pass on the full .25 percentage point reduction is an uncertain instrument in the current global financial economy for which the RBA or government policy must acknowledge and treat to assist in the recovery of the property markets in the North Queensland.

For more research or to share your own comments about the RBA decision and property in North Queensland, visit one of our discussion forums at:

www.rapidrealty.com.au

http://townsvillerealestate.blogspot.com.au/

http://www.facebook.com/pages/Rapid-Realty-Townsville/122486097777277

Rapid Realty Townsville

Townsville City Councillors Better off Providing Discounts to First Generation Developers

Townsville City Council would serve their community better and leverage rate payer funds more effectively by redirecting money being offered to a City Cinema Developer (see Townsville Bulletin article below) to small and medium size developers because it is more likely a greater short and long term economic benefit would be achieved for the City.

Local Property Investment Consultant and Real Estate Principal, Aaron McLeod said; "Council need to think seriously about turning on small and medium size investors again to the City".

Many small subdivisions and strata developments that were approved before the new Integrated Planning Act was introduced were established by local North Queensland families. This type of small development is now cost prohibitive to local investors. Council has the opportunity to stimulate this market with some initial relief from ridiculous planning and administration costs, Mr McLeod said.

Instead of bowing to large developer’s appealing for reduced planning costs in the City centre where an incentives program already applies of up to 50% on infrastructure charges, the Planning and Development Committee members should seriously question if they are really serving the community interests.

Small to medium size investors have by and large turned off Townsville because of the exorbitant planning costs imposed by State Government and Council red tap to complete suburban subdivisions and community-hub facilities such as local medical practices, corner stores, butchers, bakers and restaurants.

Even the privacy protection legislation is making it more difficult for small investors and developers to simply research investment opportunities in the City, causing many to throw their hands in the air and give up or redirect their attention interstate or overseas.

Just as one example, a local investor and medical practitioner wanted to set up a small psychology practice from an existing residential dwelling, which is located next door to a hotel and across a main road from an existing set of shops neighbouring industrial sheds in a well-established community, and Council planning provided absolutely no encouragement. Not only the investor but the prospective Seller of the residential dwelling is bewildered and frustrated with the system.

These small developments provide direct economic stimulus with construction and operational jobs, but most importantly, it stimulates broader investor confidence and therefore more investor demand for property in the City.

It seems our esteemed Councillors are happy to network and lobby with large corporations in the CBD to facilitate favourable financial outcomes for big business, but they are ignorant to the frustrations and call for help from the network of small to medium size investors local to North Queensland, and the prospective sellers that increasingly under enormous pressure from their banks to sell their properties, simply wanting urgent respite from the intolerable planning and administration fees and charges.

References:

Townsville Bulletin - http://www.townsvillebulletin.com.au/article/2012/11/28/371020_news.html
Rapid Realty Townsville - www.rapidrealty.com.au
MCINC Investments and Consultancy

Rapid Realty Townsville Praised by Vendors and Landlords

Rapid Realty Townsville Team, August 2012

Townsville based and nationally trademarked real estate agency, Rapid Realty Pty Ltd is receiving increasing acknowledgement from Landlords and Vendors for "prompt and cheerful" service.

The locally established agency since 2007 is exceeding expectations in their sales and property management business.

Unlike the USA and New York based Rapid Realty, Rapid Realty Townsville is Australian owned and managed by its Australian founder.

"Receiving praise from our valued clients is invaluable and testament to the level of satisfaction being experienced in our sales and property management business"; Aaron McLeod, Rapid Realty Founder and Principal Director said.

"We have been working hard for five years nurturing our clients and their properties and developing our technology, processes and people to continually improve our services. We pride ourselves on delivering 'real service, rapid results' and, to receive praise for what we love doing is a humble experience.” Mr McLeod said.

A Rapid Realty Landlord from Cairns said; "Rapid Realty has managed two of the properties in our portfolio for several years now. The thing that differentiates Aaron and his staff is that they really do deliver. They do what they say they will do, and they do it promptly and cheerfully. They are by far the best agents we have dealt with. They spend the time on your property, including when the going gets tough. They communicate well and give us a sense that they are a genuine 'partner' in our wealth creation endeavours. What more could investors want. Thanks Aaron."

Another Rapid Realty Vendor from the Sunshine Coast said; “We were a little unsure if this was the correct way to go as there were other agents very willing to sell the property also. However, you asked for the opportunity to sell Mum’s property for two months to see how it went and even after explaining to us that December– January would be fairly quiet trading you affected the sale promptly. Aaron at all times you were courteous and polite and were very helpful to our Mum during the time that it took to complete the transaction. We wish you all the best with Rapid Realty and would have no hesitation in recommending you and your business to anyone in the future”.

Rapid Realty Townsville was foundered by Aaron McLeod in December 2007 in Townsville, North Queensland. On the 7^th December 2012, Rapid Realty will celebrate their 5^th Birthday at their Boundary Street office.

 

Source: www.rapidrealty.com.au

Government Sponsored Development "The Village" Attracting Robust Investor Interest



"The Village" Development Stage 1 - Idalia Townsville

Rapid Realty Townsville is receiving an increasing number of enquiries from local, state and interstate investors wanting local expert direction, price comparisons and property management quotes on house and land packages in the new "The Village - Where the river meets city living" development.

Rapid Realty Townsville Principal and National Director, Aaron McLeod said; "Investors are seeking reliable, independent and trustworthy information from a local real estate expert as they sum up the ROI opportunities.

 

"The Village" development adjacent to Ross River at Idalia is a new Government Sponsored Urban Land Development Authority (ULDA) initiative only 1 kilometre from Rapid Realty Townsville's office.

 

For more information, appraisals and property management quotes, go to www.rapidrealty.com.au

Rapid Realty Townsville Welcomes Locally Born Business Development Manager

 

Rapid Realty Townsville welcomes the appointment of  Tracey Walsh as Business Development Manager - Rentals.

Tracey is a career Property Manager with several years experience in the rental market. She has recently joined Rapid Realty as a Business Development Manager.

Her personal goal is to be a part of a team who are known as Townsville’s most professional, reliable and leading Real Estate Agency. She prides herself on her ability to provide comprehensive, reliable and outstanding service.

Tracey is a born and bred Townsville local and knows the city and surrounding areas like the back of her hand. Her success in real estate has been built from hard work, understanding clients’ requirements and a great local knowledge.

Tracey has a large network of clients gained through her vast knowledge of the property market and ensures all new and existing clients receive up to date information about the current real estate market.

Tracey brings with her an impeccable sense of service excellence and communication skills gained from her previous experience in the real estate industry and management positions.
www.rapidrealty.com.au

BOOM PRICES GONE FOREVER: GAIL KELLY, WESTPAC

Mal Charlwood

The head of Westpac, Gail Kelly, stated this week that property sellers who are waiting for the return of the “ price boom” days are going to be disappointed.

She said those heady days are gone forever as banks don’t allow the extravagant borrowing amounts like they did a year or so back.

People who want to sell their properties must be aware that the market has changed forever and comes to terms with today’s prices... even if you bought in the height of the price hike...

References:

Radio Real Estate Triple T 103.9 FM (Sat: 9am)

http://www.townsvillebulletin.com.au/article/2012/06/23/340911_real_estate.html

realestatetalkback@gmail.com

Majors Creek School Sells to Private Buyer

Majors Creek School was sold to a private buyer yesterday with an unconditional contract for the asking price of $264,000 from Education Queensland.

Locally founded real estate agency, Rapid Realty Townsville won the tender and was appointed by Education Queensland to auction the property on 21st April 2012.

The auction was held onsite at Majors Creek School, 45 minutes west of Townsville, last weekend and attracted seven registered bidders and over twenty guests, a few of which demostrated their opposition to the sale.

Retiring Mayor Les Tyrell said to the Townsville Bulletin (19th April 2012); "I would call upon the education department to rethink their tactics and withdraw it from the market, and arrange to transfer it to a community organisation, whether that be through the council or not - we can sort that out later."

Rapid Realty Townsville's Auctioneer Mal Charlwood said; "three active bidders on the day of auction pushed the final bid to $221,000, at which price the property was passed in for not reaching the reserve."

It is understod the successful buyer intends to utilise the three main buildings, tennis court, cricket pitch on 3 acres as their private family home and place of residence, Mr McLeod, Principal Rapid Realty Townsville said.

Dispite some local protests from a few local residence, the 77 year old school will now be used for private purposes.

References:

http://www.townsvillebulletin.com.au/article/2012/04/12/321881_news.html

http://www.townsvillebulletin.com.au/article/2012/04/19/323991_news.html
www.rapidrealty.com.au

Green Light on Auction of Majors Creek School

Rapid Realty Townsville has the green light from Education Queensland to sell Majors Creek School under the Auctioneers hammer tommorrow (Saturday) at 2.30pm despite some determined opposition from local residents and Townsville's Major Les Tyrell pleading with the State to gift the school to the community.

Mayor Les Tyrell said to the Townsville Bulletin (19th April 2012); "I would call upon the education department to rethink their tactics and withdraw it from the market, and arrange to transfer it to a community organisation, whether that be through the council or not - we can sort that out later."

Rapid Realty Townsville Principal Mr McLeod said; "Local Townsville residents and groups have a unique opportunity to buy the 77 year old school buildings in fair condition on 3 acres, two titles, tennis courts, water tanks and fencing only 45 klm from Townsville City and within the shadows of Mount Elliott and Bowling Green Bay National Park".

Mr McLeod also said; "This type of government asset does not come onto the buying market very often, and even less so in the future because once they are sold to a private interest they rarely return to public hands".

"Residents and interested buyers can view the property for 1 hour at open for inspection immediately before the auction for the final time before it is sold to the highest bidder", Mal Charlwood, Rapid Realty Townsville's Auctioneer said.

Interested buyers should contact Rapid Realty Townsville (www.rapidrealty.com.au) now to register their interest in the auction and be prepared with their bank cheque deposit and signing of the unconditional contract on the fall of the Auctioneer's hammer.

References:

http://www.townsvillebulletin.com.au/article/2012/04/12/321881_news.html

http://www.townsvillebulletin.com.au/article/2012/04/19/323991_news.html

SOUTH TOWNSVILLE BUYING BONANZA ON EVE OF MARINA DEVELOPMENT

South Townsville's popular Sixth and Seventh Avenues is set to experience a buying bonanza next month as five properties within the precinct of the new South Townsville Village Residental and Marina Development goes under the hammer at auction on 28th April or sold beforehand.

The South Townsville Village Residential and Marina "development would take place on land left vacant by relocation of the marine industries, which presently occupy the site, to the Marine Industries and Boating Facilities Precinct."

"Relocation of these marine industries would become necessary when their ocean access was locked by the Eastern Access Corridor bridge (which is likely to have a low navigational clearance). The concept envisages small lot residential development with emphasis on ready access to the marine environment and to Townsville’s central area." (http://www.deedi.qld.gov.au)

The Sixth, Seventh and Boundary Street properties presents an amazing opportunity for investors and home buyers wanting to establish a property foothold in Townsville's only bayside, riverside and island suburb in which significant capital is being invested by government and commercial enterprises to enhence residental living so close the Townsville City heart.

The strategic location of these properties so close to hotels, resturants, transport, city and port facilities including new cruise ship terminal, Reid Park's V8 Supercar track, cultural precinct and Civic Theatre, schools and shops shines brightly as a beckon to astute buyers in North Queensland, Rapid Realty's Principal Aaron McLeod said.

Detailed information about each property is available on Rapid Realty's website (www.rapidrealty.com.au), South Townsville's only locally run and operated agency.

Rapid Realty Principal, Aaron McLeod

MEDIA RELEASE: TOWNSVILLE REAL ESTATE MARKET BUOYED BY INTEREST RATE DROP

Townsville buyers have expressed record registrations for today’s Auction Extravaganza at Condon as the Reserve Bank of Australia announced a .25 percentage drop in interest rates. “Townsville’s property market is showing clear signs that buyers are returning to the bidders circle”, Rapid Realty Townsville Principal Director Mr McLeod said. “The perception of buyers is the market has reached the bottom of the property cycle”, Mr McLeod said.

Townsville auction clearance rates have been languishing below 50% but increasing enquiries, offers and pre-auction registrations are clear signals that buyers are expressing a more confident mindset. With further interest rate easing expected by the RBA over the coming reporting period in addition to the .25 percentage points drop on Melbourne Cup Day, it is an anticipated more buyers will return to the more stable property market. This return of property market confidence could be influenced by the equity markets continuing to behave with inconsistent uncertainty and US and Europe financial markets continue to show signs of imploding.

Radio Talkback Host and Rapid Realty Townsville’s Auctioneer, Mal Charlwood said; the “Auction Extravaganza will have a festive atmosphere with high pre-auction registrations and cashed up buyers are excited about winning a successful bid under the hammer”.

Today’s Auction Extravaganza at Condon includes a fund raising event for the Queensland Cancer Council with prizes being offered by Townsville building contractors, mortgage lenders, wealth advisors and real estate professionals. The pre-auction activities kick off at 3.00pm and the main auction of the 4 bedroom house on large block of land at 39 Teal Street Condon will start at 4pm.

For more information or enquiries please ph 4771 3600

Grand 6 Bedroom Home with Pool

This grand 6 bedroom 2 level Queenslander is located conveniently to schools and shops in Mysterton only 5 minutes to the City.

Situated directly opposite childcare and church, this unquie home would be suitable for an academic or professional family. This gorgeous property is fit for a queen featuring:

Upstairs
* Large master bedroom with en-suite and walk through robe
* Sewing room/change room
* 4 guest bedrooms with built-in robes all air-conditioned
* Main guest bathroom with spa bath
* Front breezy deck and splayed staircase
* High cathedral ceilings and designer architraves

Downstairs
* Large 2nd bedroom with spa en-suite and built in robe
* Large open plan kitchen, dining and lounge opening to swimming pool
* Library/waiting/study room
* Study nook and book repository
* 3rd shower and toilet
* Large internal laundry
* Split system air-conditioning
* Polished timber floors throughout
* Internal polished timber stairwell
* In-ground swimming pool
* Entertainment area and patio
* Large yard and established gardens
* Double lockup sheds
* Carport accommodation for 4 vehicles
* Fully fenced

With such an abundance of lifestyle features so close to shops, schools and transport, this grand lady of Queenslanders is treasured asset in the Mysterton area of Townsville.

FISHERMAN’S RETREAT BEACH HOUSE

Make and Offer to Purchase - Situated only 45 klm to the heart of Townsville City and a short stroll to the beach and waterfront, this tidy, clean and cool 2 bedroom beach house is located in a quiet and friendly fishing village only 400 metes to the water.

As a priceless lifestyle opportunity, the vendor is not able to decide on a suitable price and was wondering if a serious buyer could get the discussion started with an offer.

Positioned on a slightly elevated block, this property could be an excellent lifestyle for the adventurous traveller seeking peaceful retirement or an urban professional looking for a great weekend getaway for the kids and family to enjoy on the door step to the seaside fishing and boating playground.

When you are tired and exhausted from the beach and water, you can return to your own comfortable home and relax on your breezy front veranda with BBQ and coldie or lay back in the air-conditioned living room for a good night’s rest.

With a generous size block, you have plenty of room to grow your own tropical fruit just like the massive paw paws ripening and ready to eat as we speak.

The dwelling itself is serviced by town water, bitumen road and electricity and is constructed from steel with 2 bedrooms, open plan kitchen, dining and lounge with bathroom.

Fulfil your dream today and contact your friendly agent Aaron for more information on 0414 590 110. A Sustainability Declaration is available upon request.
www.rapidrealty.com.au

For Sale - Fresh Renovated 2 Bedroom Unit

3/90 DEARNESS STREET GARBUTT - Auction Sat 29-Oct-2011 4pm
This freshly renovated ground floor unit is located only minutes to the Strand, City and Airport, close to shops, schools and parks. With such convenience to everything, owning your own tidy and spacious unit is an excellent achievement for the first home buyer and lifestyle investor.

The lovely property features:

* 2 bedrooms with built-in wardrobes
* New kitchen and appliances
* New floor coverings throughout (tiled living areas)
* Tasmanian Oak feature wall
* New split system air-conditioning to living and ACs in the bedrooms
* Private courtyard with shade cover and lawn
* New bathroom and toilet fittings
* Lock up garage with secure internal access
* Internal storeroom and laundry
* Convenient guest parking

This contemporary design home would be suitable for the professional person or couple or fly in fly out worker.

Contact your local agent Aaron on 0414 590 110 for a viewing today.

Offers will be considered before Auction.

MEDIA RELEASE: RADIO REAL ESTATE HITS THE AIR IN TOWNSVILLE

MEDIA RELEASE: RADIO REAL ESTATE HITS THE AIR
Radio Real Estate went to air today on Townsville Radio 103.9 Four Triple T . Mal Charlwood, who is a Licensed Real Estate Agent and Auctioneer, has commenced a live talk back show to allow the listeners to phone in and ask questions regarding all aspects of buying and selling real estate.

Mal said “ the show aims to separate the facts from the myths about buying and selling real estate”.

The educational forum is softened with some humorous reflection by Mal of his experiences in the world of listing and selling real estate over the past 40 years.

Anyone who might have any interest in real estate should not miss this informative and free community service.

The first show this morning was well received with the phone running hot even after Radio Real Estate had finished.

Four Triple T radio station compare Clive Simpson said; “We believed that the show would be successful but the response was overwhelming”.

The show will air every Saturday morning straight after the News at 9.00am.

Contact Mal (pictured) at www.rapidrealty.com.au