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…. 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:
- Provide clients with a deed of variation to the original contract covering relevant issues (sunset date to be changed).
- Proceed with all necessary paperwork.
- 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:
- Register for this Thursday night’s webinar:
>>> Webinar Registration
- 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!
More…
UNBEATABLE VALUE
DEVELOPER SLASHES PRICES BY $20,000
PLUS
A LIMITED OFFER TO FIRST 6 BUYERS
Throughout the Global Financial Crisis, mrd has successfully negotiated with ‘hurting developers’ and achieved some great deals for our clients
Two of these have been absolute doorstoppers
Now we have secured the third!
NB: This offer was made available 48 hours ago to those on our clients base registered as a VIP. If you are seeing this for the first time it means you are not on our VIP list. To receive 48 hour advanced notification on all future projects and/or special offers, upgrade (at no cost) to a VIP today >>> more
For more information or to request a complimentary (no obligation) Cash Flow Analysis for RUSH, please let us know. Simply send us an email or call on (07) 5580 8888
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:
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We are very excited to see the completed construction of The Wharf… and it looks fantastic!
Settlements are set to commence 26 August, as those contracted to buy would be aware through communications with Wendy and the team.
Located in not only the fastest growing region of Australia – South East Queensland, but also the fastest growing business region in Queensland, the Gold Coast.
The Wharf sits next door to The Rocket; a striking 16-story office building that sets the tone for the future of the Robina Business district.
The ingredients for a successful investment are all found at The Wharf:
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Coomera is a location that has not yet realised its full potential! This area has massive plans for growth and development. For those that have invested in good faith – you will be rewarded.
(Click image to see a larger version)
Coomera has changed very rapidly over the past few years. High density housing east of the Motorway in and around the old Coomera Township brought many new families to the area. New shops opened and activity in the area has increased. This activity confirmed to many people that Coomera was finally on the move. Meanwhile, the acreage precinct along Foxwell Drive (which is also the middle of the new Coomera Town Centre) has seen developers, investors and speculators buying up rural land for future redevelopment…
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Predicting the next ‘hotspot’ for property can be speculative unless it is supported by key fundamentals to an area’s future growth and development. This is exactly the position Varsity/Robina is in right now. Major infrastructure changes amount to $2.6 billion in projects either underway or planned and over $2 billion of commercial and residential development either under construction or in the planning stages.
The new $324 million rail extension from Robina to Varsity is on track to be completed by the end of this year.
With the concept of transit-oriented communities being a major thrust for planning and development, Varsity Station Village has been designed featuring residential, retail and commercial buildings providing services, shops, employment and apartment style living – all in close proximity to high quality public transport.
The South East Qld Draft Master Plan allows for up to 50,000m2 of commercial space in the village that could potentially contain large corporate head quarters and small and medium size leasing opportunities.
This could generate up to 2,500 office jobs and up to 350 retail jobs
The precinct could also contain between 600-900 residences in the form of townhouses or apartments, accommodating between 1,250-1,900 people.
We are excited about this project amongst the many others being developed right now, as the investment many of us have made into this area has positioned us for a solid return in the future.
To enable you to gain a better picture of how your investment is placed please click here to view the “Village Guide – summary of the Master Plan, Queensland Transport”.
If you would like to look at what opportunities are available for you to invest into this area visit our available property page here and ready to settle property here.
Finance Structure and Cash Flow Health Check:
We have assisted many people to better structure their financial arrangements, save interest and pay off their homes quicker. If you would like us to prepare a complimentary Finance Structure and Cash Flow Health Check send your request, along with your best contact time to us
We have worked overtime in an attempt to effectively communicate just how exciting Robina is as an area to invest into. Between mrd staff & family, we have collectively bought seven properties in the Robina area in the past couple of years… and we believe “pay day” is about to come! Please read this Robina Update – Don’t Say We Didn’t Warn You!!
Many of you would have read our article on “Gold Coast Hot Spots” in last Friday’s newsletter. For those who didn’t it is available here. Gold Coast Hotspots.
As you have inquired about properties through mrd recently, have recently purchased or are in the process of purchasing in the area we wanted to rush to you your own special update on Robina; complete with updated details and pictures of the Robina projects we have been involved with.
Bill Morris, author of the Midwood Report was recently quoted in The Gold Coast Sun newspaper, “Home buyers hitting the Gold Coast market can now expect an average 30 per cent increase on their house’s value by the end of next year”. Bill went on to say “the market would start to bounce back and home buyers should purchase before the end of 2009 if they wanted a bargain.”
Defying the global economic crisis, two suburbs stand out and stand up to the test of the current conditions. While property value growth was negligible in most regions throughout 2008 the fundamentals still remain strong for the Gold Coast leading to a very positive outlook for the future. Resurgence in the Gold Coast property market has been tipped by one of Australia’s leading property commentators, Michael Matusik.
- March 27th, 2009 Gold Coast News
More…
WOW, Christmas is almost upon us yet again; hasn’t 2008 come and (almost) gone so quickly? It has been a tumultuous year. The fallout from the subprime issues in the USA gave way to a credit crisis… with went on to become a global economic crisis. I believe the Australian property market is poised for good things; as clearly demonstrated in my recent Web Seminars titled “What In The World Is Going On With Property“.
NB: If you missed out on participating in one these Web Seminars you can now watch it online; click here.
The Global Credit Crisis & Property Investors
As property investors the good that has come out of the recent global turmoil has been a massive reduction in interest rates. I am now so very close to being cashflow positive across my property portfolio… and interest rates are still falling and likely to stay very low for years to come!
The downside for property investors is that lenders have tightened their lending criteria making it harder to secure funding that it was previously, in some instances. With interest rates falling, however, serviceability has been made that much easier creating opportunity for many who previously could not secure funding to now qualify.
The Global Credit Crisis & Property Developers
The impacted on developers has been massive. Companies large and small have all been affected. Many developers have gone broke or just closed up shop, others have shelved projects indefinitely and are waiting until they see evidence of investors returning to the market. Others have soldiered on but have had many new funding hoops to jump through put in front of them.
Banks have been scared to lend to each other, so regardless of whether you are an individual looking to borrow money to buy a property or a developer looking for the funding necessary to complete a project… 2008 has seen a real tightening of lender willingness.
Waterside Residential:
We have received the following update from the developer…
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