mrd

Construction of Wynd Villas is nearing completion, progessing well and is ahead of schedule with some nice dry months to allow continuous construction. We are pleased to announce one of the Villas has been fast tracked to create a display and we are in the process of applying the finishing touches before the designer furniture arrives next week. The entry features are starting to take shape with the ordering of the Wynd Villas transparent lazer cut sign and up lighting today plus the laying of the mosaic water line tiles in the pool.

With construction on track for completion in October this is the perfect opportunity to take advantage of the $10,000 Qld Government Building Boost and invest in quality residential property that is very well located and set for the future rise of the Queensland property market.

Find out more about these modern Gold Coast 3 bedroom, 2 bathroom townhomes here >>>>

Check out all the latest photographs of Wynd Villas here >>>>   (Note: view the full size of each photo)

For a complimentary Cash Flow Analysis Report on Wynd Villas – contact mrd here >>>>  OR call us on 07 5580 8888 (out of office hours messages will be received)

On or about the 11th March this year Udo Jattke’s bank appointed receivers and took over his operations. Let me provide a little background as I understand it…

Back in 2007 Udo approached his lender to fund the Waterside project, to be built in two stages. Stages one and two first, then stages three and four sometime in the future. His bank agreed to approve the funding of this project subject to pre sales… but only if he built all four stages from the outset. He satisfied the bank’s lending conditions, securing more than the required pre sales, etc. Everything was approved and ready to commence construction right when the GFC came along. Immediately his lender withdrew funding on all projects not started; including Waterside Residential, Seashells and Townsville Waters (even though the funding for all these projects had previously been fully approved). This was pretty much the experience of all developers around the country where construction was yet to begin.

Over the past two or three years, since the GFC, most developers that owe banks money have been given a very hard time… and Udo has been no exception. He has been consistently called upon to reduce his debt… and as other properties he built have settled his bank has taken all of the settlement proceeds – leaving him struggling to find working capital.

Due to this pressure Udo has spent the past year or more negotiating with a Chinese consortium to purchase the Waterside project – as a ‘going concern’. His company, Glencorp was to undertake construction and existing purchasers would have their original contracts honoured.

But sadly, this is no longer to be!

On the 21st January 2011 I received the following update from Glencorp:

“Waterside Residential is due to settle on the 3rd June 2011. So we should have ground work starting a month after that.”

My understanding (noting I am not privy to the ins and outs of the workings of Glencorp) is that there had been some extension requests from the purchaser. Perhaps, I really don’t know, there was yet another extension request in March that triggered the bank to move in. Alternatively there may have been no further extension request and perhaps the bank just decided to move now regardless.

Whatever went on behind the scenes it is very sad to see such a decent Australian man, his business and staff all ‘put out to pasture’. This is an undeserving and tragic outcome that has seen the operations of Glencorp and Glenwood homes in the hands of the receivers being wound up. NB: If you were contracted to purchase in the Waterside or Seashell developments please look out for my separate update to you… tomorrow!

The impact that this could have on you as an investor who has purchased a Glencorp property is the company is no longer there to attend to any defects that may arise. Udo’s projects had a reputation of being very well constructed and so this is unlikely to be of any significant consequence.

On the flip side the GFC fall-out will have a very positive impact on existing Cairns property owners.

Let me explain…

• The three only major property developers that were rolling out the majority of new Cairns projects pre GFC (two public and one private company) have now all gone bust
• There has been no new construction of any significance undertaken there now in three years
• There is no new construction on the horizon
• Supply shortages will drive property prices higher
• Supply shortages will drive rents higher
• Higher rental yields will attract more investors to the market, further adding to the supply shortages

I really do see great times ahead for those who hold Cairns investment property; albeit the tragedy in Japan is likely to defer this for some months.

As I write this in April 2011 I am witnessing clear and tangible early signs of the South East Queensland property market turning!

SEQ has not yet enjoyed a ‘property boom’ in many years. There have been booms in the North Queensland, Perth, Darwin, Canberra, Melbourne and Sydney markets, but SEQ is well overdue. I have been predicting that a correction is coming… and I am now witnessing signs that it is imminent.

WARNING!

• When markets turn they turn suddenly and most people are caught unaware.
• You can hold me to this… the buyer’s market HAS bottomed-out and prices ARE soon to rise.

To discuss your goals and/or opportunities in this current market – including having your mrd property mentor prepare a fresh ‘Retire On Your Equity’ (ROYE) analysis with you simply reply to this email NOW >>>here.

Have a great week,

Nick Lockhart.
Our Customer Care Program works for you… because investing is personal!

Ipswich Update

The Ipswich Story just keeps getting better! Those in the know have labelled the city of Ipswich in Brisbane’s west as “Hot and Happening”! Ipswich, one of the key urban growth fronts identified by the Queensland Government’s South East Queensland Regional Plan, is set to grow almost three times faster than the rest of Queensland in the coming years.

As reported by Simon Johanson in The Age newspaper 24/07/10 – BIS Shrapnel’s chief economist, Dr Frank Gelber, who was speaking in Melbourne at a Real Estate Institute of Victoria lunch, said the global financial crisis had done the Australian economy a “huge favour” by crimping risks in the market.

“We’re not over-geared, we’re not overvalued and we’re not oversupplied,” Dr Gelber said.

“I can’t remember in the last 30 years a time when I have been more comfortable and optimistic about investment in the market.”

A recent article in Brisbane’s Sunday Mail newspaper stated that Ipswich could become The Seattle of the southern hemisphere after winning support for a plan to make the city a national aerospace and aviation hub. The full article appears below.

Further recent newspaper articles support Ipswich’s lower than average unemployment, strong demand for housing and continuing development of the aviation industry.

Raceview Terraces

The Suburb of Raceview is located on the east of Ipswich city, less than ten minutes drive from the Ipswich CBD & close to the Cunningham Highway and Brisbane Road, which provide direct access to Brisbane.

This quality townhouse development, located in Briggs Road Raceview, is poised as an ideal residential property investment due to the continued growth in the population of Queensland and Ipswich in particular. This growth will drive demand beyond supply.

Sales in the Raceview Terraces development have been relatively strong considering the current up and down residential market. Latest indications from the developer are that construction will commence on site toward the end of September 2010, then following a 7 month construction schedule, settlement should be occurring in late May or early June 2011.

Raceview Terraces, a quality development consists of 26 three bedroom townhouses, selling at just $324,900 and with an expected rental return of $320/wk, are certainly an affordable quality development presenting an ideal opportunity in a standout south east Queensland capital growth area.

RUSH – Gold Coast – Coombabah.

19^th April 2010

A well researched, residential property investment on the Gold Coast  is a positive step forward in securing your financial future and today in 2010 this is proving true even more so, as Queensland’s South East continues to develop and flourish at a rapid pace. The ‘Rush’ Townhouse Development at Coombabah is a shining example of such a well researched positive residential investment step forward.

As part of its record $18 billion building program, the Queensland Government is investing more than $1.9 billion in the Gold Coast region this year – 2010 / 11. This is one of the primary reasons why Queensland’s economy is still performing better than the national average and it’s helping build the infrastructure needed to support the Gold Coasts rapidly growing population.

Recent development, progress & activity on the Gold Coast included:

• Continued population growth – current population at 30^th June 2009 was 515,157. This figure represents a change from the previous year of +3.13% (Gold Coast City Council).
• The continuing population growth creates a demand for 100 new dwellings per week (PRD Nationwide)
• $68.68 billion worth of residential, commercial, retirement, refurbishment, tourism and infrastructure development was proposed or under construction at October 2009 on the Gold Coast and northern New South Wales, including:

1. The new Gold Coast University Hospital at Southport. Due for completion in 2012, the $1.76 billion health facility will provide complex care, research and teaching opportunities on the Gold Coast and will play a key role in training the clinical leaders of the future.
2. The Gold Coast Rapid Transit System, the largest transport infrastructure project ever undertaken on the Gold Coast, is set to deliver a modern, reliable and affordable public transport solution for the community.
3. Continuing improvements and expansion of the Gold Coast Airport Terminal.
4. Recent completion of Southern Cross University Gold Coast Campus at Bilinga. Planning is now underway for another 10 storey development on the Bilinga site.
5. Continuing work on the Robina Hospital expansion due for completion at the end of June 2012
6. Recent completion of the railway extension from Robina to Varsity Lakes.
7. Upgrading of the M1 Motorway between Brisbane & Tugun, including the section of motorway between Nerang South & Varsity Lakes which incorporates the new Mudgeeraba Interchange.

Construction work on the Rush Development is well underway with completion of the project scheduled for the end of July 2010.

Summarising;

• Site retaining walls are complete
• Concrete slabs have been poured
• Swimming pool has been concreted in
• Timber framework is all but complete (about 5% to go on last few townhouses)
• Water service & waste drainage “rough-in” has been 85% completed on the development
• Electrical “rough-in” cabling work is presently underway to individual townhouses & supply mains to the development have been run in & installed to the main switchboard location
• Scaffolding has been erected
• Delivery & installation of the roofing material is about to commence
• Bricks have been delivered & distributed around the site, as required
• “Bricking-in” of the individual townhouses is preparing to commence

Recent photos of construction progress on the Rush Townhouse Development

Cairns & The GFC

Australia came out of the ‘Global Financial Crisis’ relatively unscathed considering the potential impact, had our financial system been in a similar state as some other countries around the world.

Already the fundamentals that carried us through and kept us afloat on what seemed like sinking sand are beginning to thrust our property market forward.  As a nation we have seen a median house price growth of 11.3 per cent over the first 11 months of 2009 across most capital cities.  Certainly the combination of the Government’s stimulus package (First Home Owners Grant) and the lowest interest rates in 50 years helped, with the result that housing was at its most affordable since 2002.

Population Growth

Supply and demand is still the forceful factor in the whole equation.  Population growth and strong overseas migration…. Read more…

Most mrd clients who signed contracts on Waterside Residential did so in mid 2007. At the time we had no idea that it could be five years until anyone would settle… nor that when settlements finally came around they would still only be at 2007 prices – which were considered fantastic at the time anyway; evidenced by how quickly so many people snapped these up!

Please keep reading; we have fantastic news to share with you

As an investor in the Waterside Residential Project in Cairns, you will have either (or soon will) receive a letter from the developer, Udo Jattke of Glencorp. We apologise that this letter may be a little confusing – so here is a clarification.

All Glencorp require from you at this time is confirmation that you still want to proceed… as the project now has funding and as such is back on track. This confirmation is required within 30 days.

Anyone NOT intending on proceeding needs to carefully rethink such a decision as the deal on offer is one I have never heard of before, nor do I expect I will ever see again.

Once Glencorp knows who intends to proceed they will:

1. Provide clients with a deed of variation to the original contract covering relevant issues (sunset date to be changed).
2. Proceed with all necessary paperwork.
3. Require you to pay your deposit; not within 30 days but within two to three months… perhaps even a bit longer.

NB. Deposit Bonds are acceptable on this project.

Waterside Residential Stakeholders Webinar

This Thursday night I invite you to join in on a webinar that we are putting together between Udo, mrd and all Waterside Residential purchasers. This will give mrd clients the opportunity to ask Udo their questions as well as listen to the question and answers from others. Because a number of clients are in Western Australia we will hold this event at 7:00 pm their time. That means for those on NSW/Vic time it will be 10:00pm, 9:00pm in Qld, 9:30pm in SA.

>>> Webinar Registration

Why You Should NOT Let Your Waterside Contract Fallover

During the Global Financial Crisis, ‘development funding’ came to a complete halt. This of course has now strangled the supply side of new residential property to the market for months and years to come, a situation that will continue until the balance returns and rights itself. The Waterside Residential Development was greatly affected by the disappearance of development funding and looked like it would be shelved for a very long time.

Recent interest rate rises in Australia have now changed the game. Developed countries around the world have interest rates at historical lows, some down near 0% whereas here the official RBA cash rate (today) stands at 3.75%. With our stable & relatively strong economy, Australia is attracting finance from overseas lenders chasing the better % return on their money.

The availability of funds is now returning for reputable developers with solid projects on their books and as such, Glencorp now has the necessary funding required to make Waterside Residential Cairns a viable development subject to them being able to verify to their financiers that (1) they have contracts in place and (2) those parties in the contracts are prepared to sign a deed of variation to push out the sunset date (i.e. acknowledgement that they still intend to proceed to settlement).

Udo visited our office and met with the mrd team  last Wednesday 10th February, 2010. He surprised us all when he said that he would honour the original sale prices that all our clients signed up for as far back as mid 2007!

Udo incurred many costs when this project stalled as developer funding dried up during the GFC. He intends recouping some of these costs by reselling at a higher price those units that existing buyers do not continue with. This will be fantastic for valuations and assist you in having some great equity in your property from the time of settlement; still another two years away for Stage 1.

Summary

• Waterside Residential units were sold off the plan from mid 2007
• At that time they were considered great buying and accordingly were snapped up very quickly
• The GFC put the viability of the whole project in question
• Almost three years on the developer has managed to secure funding
• We expected prices would have to rise
• Developer has agreed to hold/honour your original contract price, even though settlements are still two plus years away
• You will settle (probably) in late 2012 and pay only 2007 prices (remembering they were considered great buying at that time too).
• There is very little new construction coming on line due to developers not being able to secure developer funding. This will have a big impact on future supply.
• Being able to hold a property for five years… with no tenants to worry about, no council rates, no body corporate, no maintenance and no bank interest to pay… and then settle on a brand new property for an amount that was good buying five years earlier… IS AMAZING!!!

The Catch

You have perhaps had a cash deposit tied up or have been paying the premium on a deposit bond during this time… and yes, any deposit bonds will need to be renewed and there will be a cost involved. That’s it… a VERY small price to pay for five years of capital growth and a property that is still brand new and will attract 2012 rents!

Seriously, I am over the moon on this deal and so very happy I get to announce a fairytale ending to what was a real saga just last week! I know of NO other developer who would have agreed to hold these prices… for five plus years!

Almost A Property Doubling Cycle

If you expected an eight year doubling cycle and our last real boom on the East Coast ended in mid 2003, then these next two years (while Waterside is under construction) could see some massive growth in values. Even if you assume a ten year doubling cycle (and I don’t), we are seriously due for some significant increase in property values during 2012 and 2013. Again, all this for simply the cost of holding a deposit bond.

This whole situation which started out looking like it could be a complete disaster for some, has now turned full circle to become a real windfall for investors who bought well & secured property for between $230K and $482K.

mrd maintains full support for your investment in Waterside Residential, Cairns and encourages all of those investors who are able to continue on with this exciting development, to do so and take full advantage of the fantastic opportunity that the development continues to offer.

mrd Research Department – Latest Cairns Update

Please click the following link to read our latest Cairns Update. From that report is a link to another that you won’t want to miss either.
>>> Latest Cairns Update

Unsure Or Confused

The two best things to do if you are unsure of what your best option right now is would be to:

1. Register for this Thursday night’s webinar:
   >>> Webinar Registration
2. Speak with an mrd Property Mentor about your individual situation:
   >>> Financial Health Check Request

We look forward to continuing our support for you in any way possible.

Happy Investing,

Nick Lockhart
mrd Customer Care… because investing is personal

- Great Value and going… going… FAST!
- There are 39 Townhouses in this project
- Priced from $359,500
- Yielding approximately 5%
- 31 have been SOLD
- Eight only remain
- 11 were sold in the past week alone

In our opinion, these townhouses represent seriously good value!

Read more…

Whitfield:

Centenary:

The Beaches:

City Park:

Clifton Waters:

Clifton Views:

RUSH

‘RUSH’ is a boutique development of just fifteen (only) 3 bedroom (plus study nook) luxury town homes.

RUSH boasts an accent of comfort, space, security; close to the beautiful waterways of the Gold Coast

For more information or to request a complimentary (no obligation) Cash Flow Analysis on this property:

• Call mrd on (07) 5580 8888 or
• Email Enquiry

Read more…