Government Incentive for New Homes Extended for Another Three Months $10,000 to buy new property will likely end

Posted on January 16, 2012 by admin

Well, it has now officially been confirmed. The QLD State Government’s incentive of $10,000 for all buyers of new property, designed to stimulate the residential building industry and local property market, has just been extended for another three months!

What does this mean for you? Well, if you are ready to start the year off by achieving your New Years Resolution to do something positive toward setting yourself up for a future of your own design, then this is it. In fact, Grow Consulting Group are able to add up to $25,000 worth of incentives on top of what the Government is offering to make it even more worth your while.

We are offering buyers and investors entry into exciting new projects in Kelvin Grove, West End, Newstead and Hamilton Reach. Give us a call to find out some more information about how you too can benefit from investing in property in these high growth areas.

Remember, the property that is eligible for the incentives don’t need to be already completed. For homes and apartments bought off the plan, such as those mentioned in the areas above, the building work must be completed by 31 July 2013.

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In a few weeks, the Government Incentive of $10,000 to buy new property will end

Posted on January 9, 2012 by admin

As most people head back to their working life this week, we have been busy working with the last few Queenslanders to take advantage of the combined QLD State Government incentive and Grow Consulting Group incentives of up to $35,000 on new property.

Yes, its true, unfortunately the much-talked about QLD State Government incentive of $10,000 for all buyers of new property, designed to stimulate the residential building industry and local property market, will be coming to an end on 31 January.

If you act quickly, you might just make it, as it is not actually necessary that the home is actually built or completed before the closing date of the grant. For a comprehensive home building project, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting. For homes and apartments bought off the plan, the building work must be completed by 31 July 2013.

Give us a call today to find out what incentives you qualify for. If you don’t quite make it in time to quality for the $10,000 Government grant, you may still be eligible for the discounts we have been able to arrange on your behalf with developers.

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Advantages of Property Investment – Part Two

Posted on December 19, 2011 by admin

Property is the best investment you can make right now, when compared to other types of investments, such as shares.

Many investors are not aware that they can in fact use their super to invest! Changes in the law mean it is now feasible for investors to use their self-managed super fund for the purpose of property investment. This is an incredibly tax effective strategy to use – just 10% on the sale, and nothing if over the age of 60! However, the rules can be complex so seek advice before you start.

Your pool of buyers is larger than just investors – who buy an asset to make money in the short or long term. Investors are in fact the minority of buyers, with homeowners accounting for 70% of the market.  Those who purchase property with the intent of living in it buy with many different reasons in mind – such as proximity to amenities, or even an obscure feature that your investment happens to have. This means that there is a greater opportunity for your investment to sell, even if the market is not great.

Due to an increasing population, particularly in Queensland, demand is outstripping supply for property. The State Government has recognised this problem, and introduced a one-off incentive for investors of new property ($10,000, expiring on 31 January) to stimulate the building industry and cater for a growing population.  This said, there will always be demand for rental homes, as well as property to buy.

These are just some of the reasons why investment in property will always be the best investment you can make.

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Interest Rates Drop Again – this time to 4.25 per cent

Posted on December 6, 2011 by admin

Good news! Interest rates have just dropped once again, just in time for Christmas, to 4.25 per cent. Last month’s cut was the first time they were dropped in around two and a half years. This weeks’ cut was not completely unexpected, with many economists predicting more still over the coming months.

The Reserve Bank’s decision came in time to encourage spending in the retail sector just before Christmas, but we believe it will also create a busy property market over the traditionally quieter Christmas/New Year period.

In addition, the one-off QLD State Government incentive of $10,000 for all buyers of new property is also about to finish, so we will be seeing a lot of activity among buyers getting in before it ends on 31 January 2012.

Already, our personal experience is that this year’s spring and summer selling season has received increased buyer interest and activity on the rest of the year. We expect this increased activity to continue well into the New Year.

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Advantages of Property Investment – Part One

Posted on December 6, 2011 by admin

Over the next few blog posts, I thought it would be a good exercise to note some reasons why property is the best investment you can make right now, when compared to other types of investments, such as shares.

Firstly, I wanted to point out that it is comparably easy to get finance for property. Home loans are a major part of any bank’s business model, and are therefore much more likely to lend for the purpose of residential property, over any other type of asset class.

A fantastic and unique advantage of buying property is that the price is always negotiable, particularly if you work with a Buyer’s Agent like Grow Consulting Group who will negotiate on your behalf.  Off-the-plan purchases have the added option of other valuable additions that can be included as a bonus, from an extra car space to premium appliances and air conditioning. With the right knowledge and expert partners on your team, you can negotiate a great price with added benefits.

Property provides so many different options if your goals or circumstances change. For example, you may decide to renovate, subdivide or even develop an existing property to townhouses or units  (if town planning allows.)  You can choose to hold the property for the long term for capital growth or even move into the property if your situation changes (and the rental agreement with your tenants permit it.)

Finally, owning property over other types of  investments means you are eligible for multiple tax benefits, including depreciation (especially significant for brand new property) and negative gearing, which allows you to write off any expenses related to the property to lower your end of year tax return.

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Time is quickly running out for QLD State Government Incentive to Buy New Property

Posted on November 24, 2011 by admin

It’s hard to believe how quickly this year has flown. Not only is it almost Christmas already, but the QLD State Government incentive of $10,000 for all buyers of new property is also about to finish.

It feels like just the other day, but in fact it was back in June, when we announced to our clients that the State Government made the decision to stimulate the residential building industry and local property market by offering all buyers of new homes a one-off short term grant of $10,000.

Together with the first home buyers grant and competitive negotiations with developers, Grow Consulting Group have been able to bring this up to a grand total of $35,000 savings for some property buyers.

Because the incentive applies to all property buyers, a very large number of Queenslanders have already taken advantage of it. These savvy investors were also attracted by the particular developments that qualify for the incentive – all being in growth areas within close proximity to the CBD.

We expect enquiries to continue flooding in, right up until the date the incentive finishes, on 31 January next year. Particularly now that interest rates have dropped for the first time in around two and a half years, buyers are starting to realise that if they are going to enter the property market, now is the time to do it.

But, if you are considering buying under the incentive, you need to do so immediately. We doubt the grant will be extended, so this effectively means all Queenslanders keen to buy a home under the grant should do so over this holiday period before it runs out.

While the purchase needs to be made before the deadline of 31 January 2012, it is not necessary that the home is actually built or completed before then.

For a comprehensive home building project, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting, whereas for homes and apartments bought off the plan, the building work must be completed by 31 July 2013.

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Off-the-plan provides best value housing solutions in current market

Posted on November 2, 2011 by admin

At the moment, most of Brisbane’s best opportunities currently available are for properties in high growth areas bought off the plan, especially because many of these currently qualify for the $10,000 Government Grant for new homes.

It is understandable that many buyers find the process of buying property from a brochure, virtually sight unseen, a little confronting. But it shouldn’t have to be that way.

Basically, buying off the plan allows you to buy a property for the future at today’s prices. To put it simply, it is buying a property before construction has commenced, and the buyer purchases on the basis of developer’s floor plans and existing site.

Advantages of this type of acquisition include:

  • Stamp duty savings – because you are paying the stamp duty based on the cost of property at time of purchase, rather than value at settlement
  • Lock in today’s price for the property
  • Delayed settlement gives you more time to save further deposits
  • Significant tax savings – as the property will be brand new and never lived in, the depreciation on it is higher
  • Building warranty – you will be provided with all building and appliance warranties
  • Time to sell your property – allows you more time to sell the property at a profit between signing contract and settlement (if you choose to sell on settlement, rather than renting it out).

Purchasing an off the plan project at pre-public release stages can offer further discounted prices or incentives to the buyer making this type of purchase even more favourable.

Buyers only need to come up with the 10% deposit, and full payment is required on completion. Mortgage repayments are only required to be made from the date of settlement (on completion).

Some property buyers are afraid that they could lose their deposit during the time of construction. This is inaccurate. The worst that can happen if construction of the development does not go ahead as planned due to the developer going bankrupt or for another reason, you won’t lose your 10% deposit – it is returned in full, because it is held safely in the developer’s solicitors’ trust account and you will be released from your obligations under the contract.

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How to prepare months before putting in a mortgage application

Posted on November 2, 2011 by admin

Purchasing a home or investment property is generally not a decision that should be made overnight. We always suggest that buyers get their financial situation organized ahead of time, to ensure it appears favourably to lenders.

A few months before you approach a lender, it is wise to ensure you have as much cash as possible in your savings account. Credit card payments need to be up-to-date, with the limit on each card the lowest you can live with. Ensure payments on all other loans are also up-to-date, or even paid ahead where possible.

If you already own a home, put as much money as you can into the mortgage or line of credit as possible in the months leading up to your loan application, as this will also reflect well on your financial situation when a lender looks at your risk potential.

Remember that you need to appear as financially sound as possible, particularly with new lending regulations in place with regard to responsible lending. Consider affordability factors in your current and future lifestyle and address them in advance. For example, are you planning to start your own business, get married or go overseas in the near future? These are the sorts of things you may need to disclose at the time of application.

Don’t be afraid to shop around either. The best thing to do is talk to a mortgage consultant who has access to a number of different lenders to find a solution that works best for you and your needs. Just because the first lender you approach declines your application, this doesn’t mean you will not be eligible with other lenders. Similarly, just because the first lender approves your application, there may be a better deal elsewhere. Compare and contrast your options. But first, be clear about your current needs and future goals.

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Interstate buyers take advantage of new property

Posted on September 16, 2011 by admin

It is not only Queenslanders keen to take advantage of the Government incentive to build new, with property investors from capital cities nationally looking to Queensland to invest. Literally as soon as the announcement was made, we started to receive enquiries from interstate property investors, keen to discover what incentives they were eligible for and how to claim them.

There are no restrictions around what state the buyers or investors lived in, as long as the other conditions are met, making investment property in Queensland a far more attractive and affordable opportunity for property investors.

All investors and buyers from around Australia of a brand new home in Queensland (including an apartment bought off-the-plan) are eligible for the temporary State Government incentive of $10,000, available until the end of January next year. For a comprehensive home building project, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting, whereas for homes and apartments bought off the plan, the building work must be completed by 31 July 2013.

There is no doubt that the move is a positive step by the State Government in Queensland to ignite activity in the local building industry, while providing younger Australians with the perfect opportunity to enter the market.

Of course, buying new has other advantages for the investor as well, including greater tax deductions, less maintenance issues further down the track and, all things being equal, a new property typically has a lower vacancy rate than an old one. Buying new is always going to be the preferable option to investors, even after the conclusion of the government incentive to build new.

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Interest rates stay put – further incentive to buy new

Posted on August 10, 2011 by admin

While expert commentary indicated otherwise, it seems that the Reserve Bank decided last week to take the safe approach and leave interest rates on hold for another month. Despite inflation causing concern, the decision not to increase interest rates is definitely going to be in the favour of the property market.

With Queensland new home sales falling by 17.1% in June, according to a survey of Australia’s major residential builders, it would seem that the State Government incentive for buyers of new homes will not suffice on its own to strengthen the property market, and that interest rates will continue to be a determining factor.

This year has definitely provided some very interesting times for the Brisbane property market. The year started with many homes destroyed due to widespread flooding and then a very sober property market followed, containing no good words about property house values. The rental market was immediately inundated, with home owners of flooded properties looking for accommodation. As the Brisbane property market gradually looked more promising over the autumn and winter months and activity picked up again, the State Government announced that it would increase stamp duty by an astronomical amount, while off-setting it with an attractive incentive for all buyers of new homes.

The results have been a flurry of buyers of property in the weeks before the stamp duty increase on 1 August, and an equally impressive wave of enquiries for new homes and developments. Interestingly, all home owners and would-be property buyers understand the Brisbane property market is undergoing a lot of change in multiple directions, and that it will affect them, directly or indirectly. Yes, it is inevitable that demand for rental accommodation will increase as stamp duty and interest rates put pressure on local home buyers. And this in turn is likely to translate to an increase in property investors, keen to capitalise on the opportunities that present.

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