2008 was certainly a time of change for the financial and property markets and also for many individuals and businesses.

In these times whilst fortunes can be lost, fortunes are also made and ‘favour the brave'.

Let’s take a look some of the opportunities in the property market for 2009.

We wish you a Merry Christmas and a prosperous 2009!

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The old adage "cash flow is king" certainly rings true in the current climate.

With mortgage rates in the low 5%'s (and dropping) and residential rental yields at 5% and rising, the opportunity to have your property investment pay for itself or close to it has not been this good in decades.

And of course commercial property net yields are now 8% - 9% meaning that investors have a difference of about 2 - 3% between their mortgage rate and their rental return or $10,000 - $15,000 positive cash flow on a $500,000 commercial property investment. Add some depreciation to these numbers and the cash flow increases by even more.

Forget about chasing positive cash flow property in remote areas or mining towns when you can find them in the nation’s capitals and major cities. We are now seeing fixed 3 year interest rates at 4.99% and this is likely to fall further by Easter 2009.

In times like this where we have a gap in expectation between buyers and sellers, those sellers who need to sell (or are forced to) are reducing their prices accordingly to meet the buyers.

Making Money in 2009

In 2009 finding the truly motivated sellers is the key to buying well and making money in property. It is really a numbers game – the more offers you make, the more likely you will find a motivated vendor that will say yes to your offer.

Most types of properties are negotiable at the moment and in most areas. People are generally cautious at present and worried about job security and are therefore holding off with their purchasing decisions. There are fewer buyers in the market, so vendors looking to sell have to compete for these willing buyers and reduce their prices accordingly. And of course the buyers in the market and not in a hurry and are being very selective with the property and price.

In the residential market, the below $500,000 range is offering investor's 5%+ rental yields and we believe this area of the market stands a good chance of achieving capital growth over the next couple of years. This price range is still affordable to investors and first home buyers and with increased activity since the government increased the first home owners grant the number of sales in this range has increased.

So be very selective, ensure that the property ticks most of the boxes and make offers…. If you have the right information and enough time you can even buy under the property’s valuation price.

Negotiating tips

The first tip of negotiation is to find out what motivates the other party (the vendor or seller). Is it price or maybe a quick settlement? Successful negotiation is all about creating a win/win outcome.

Whilst you may not be able to offer the seller the price that they want, you may be able to offer them an efficient settlement (say 30 – 40 days). Some important questions to ask before negotiating.

• How long has the property been on the market?
• Is the vendor keen to consider offers or will they just wait for their price?
• What settlement timeframe would they like?
• Have there been other offers?
• My maximum budget is $........ - Is it worth me submitting an offer on this property?


When you are buying an investment property, do your numbers and set a maximum price that you will pay for the property.

Ask the questions above. If the vendor is not negotiable then quickly move on to another opportunity. However, diarise to revisit this property in say a month or so as time on the market tends to soften vendors expectations. We often have had offers accepted many months after our initial offer.

It is a buyers market so you are in the driver’s seat.

Serious Property Investors have a good opportunity to capitalise on current market conditions.

The key for buyers is to sift through the opportunities available and find the gems that are out there. This is a window of opportunity which buyers have not experienced in recent years.

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All the best for Christmas and the New Year



Prosper Group are the leading property buyers agent in Sydney and Brisbane.

Prosper Group are:

• Your Sydney Buyers Agent
• Your Brisbane Buyers Agent
• Your Commercial Buyers Agent
• Your Commercial Property Managers








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STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 4.25 per cent, effective 3 December 2008.

Recent actions by governments and central banks to stabilise their respective financial systems have begun to take effect. Nonetheless, financial market sentiment remains fragile, as evidence accumulates of weak economic conditions in the major countries and a significant slowing in many emerging countries. Commodity prices have fallen further. This, combined with the likelihood of below-trend growth in the global economy, suggests that global inflation will moderate significantly in 2009.

The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring. With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term. With that outlook, and with capacity pressures now easing, it is likely that inflation in Australia will soon start to fall. Global disinflationary forces will assist in this regard, though the depreciation of the exchange rate means that the decline of inflation to the target could take longer than would otherwise have been the case.

Weighing up the international and domestic developments of recent months, the Board judged that a further significant reduction in the cash rate was warranted now, to take monetary policy to an expansionary setting. As a result of today’s decision, the cash rate will be at its previous cyclical low point. Given trends in money market yields, most lending rates should fall significantly and will also reach below-average levels.

There has now been a major easing in monetary policy over the past few months. Together with the spending measures announced by the Government, and a large fall in the Australian dollar exchange rate, significant policy stimulus will be supporting demand over the year ahead. The Board will continue to monitor developments and make adjustments as needed to promote sustainable growth consistent with achieving the 2–3 per cent inflation target over time.



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Prosper Group is Sydney's and Brisbane's leading property buyers agent, specialising in sourcing residential and commercial property.

Below is a snapshot of the Suburb Coogee, NSW.

Demographic profile

The population is 13,179. (2006 census)

The median age of Coogee residents is 34 years as opposed to 37 years for Australia. (2006 census)

54% of the population has never been married as opposed to 33% average for Australia. (2006 census)

38% of the population work as professionals as opposed to 20% average for Australia. (2006 census)

5% of the employed population works in hospitals as opposed to 3.3% average for Australia. (2006 census)

3.8% of employed population works in tertiary education as opposed to 1.8% average for Australia. (2006 census)

50% of the population are couples without children as opposed to 37% average for Australia. (2006 census)

Geographic profile

Coogee is located 8km south-east of the Sydney central business district.

The boundaries of Coogee are formed mainly by Clovelly Road, Carrington Road and Rainbow Street.

The local government area is the City of Randwick.

The topography of the local area is gentle slopes radiating out from the main beach which provides a high percentage of properties with good aspect and views.

Property Market

The median house price is $1,255,000. (Source: Home Price Guide)

The Median unit price is $589,000. (Source: Home Price Guide)

78% of housing stock is units as opposed to 14.2% average for Australia. (2006 census)

48% of housing stock is rented as opposed to 27% for Australia. (2006 census)

Recreation

Coogee’s ocean rock pools have a long and interesting history and remain a well-liked attraction.

Coogee Beach is a popular swimming and body boarding beach in Sydney.

Walking and cycling along the waterfront.

Schools

There is numerous private and public schools surrounding the suburb.

University of NSW is a short distance away in the next suburb Randwick.

Shopping Amenities

The main shopping strip in Coogee along Coogee Bay Rd has café’s, convenience stores, fast food outlets and trendy restaurants.

The nearest neighbourhood shopping centre is in Randwick which is 1.5km away.

The nearest major shopping centre’s are East Gardens and Bondi Junction which are approx 3km away.

Transport

Coogee is well serviced by Sydney’s transport system with bus routes to the city running every 10 to 15 minutes all day.

Surrounding Suburbs

Clovelly, Randwick, Maroubra and South Coogee.

Planning

Coogee is a well established suburb with land available for development being very scarce.

The majority of new development is restricted to refurbishing or demolishing.

Prosper Group are the property buyers agents of choice for busy professionals.

To find our more about buying property in Sydney please click here Sydney Property Buyers Agent



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Self Managed Superannuation Funds (SMSF) 

Friday, November 21, 2008, 02:54 PM
Posted by Administrator

Taking advantage of direct property acquisition with your SMSF

This information was provided by Mark Bonney who is director of DAB Financial Solutions. They are chartered accountants, tax agents and financial planners.

The emergence of choice in directing where your superannuation contributions are to be paid, has led to an increase SMSF. One of the advantages our clients suggest for setting up a fund is that their direct involvement gives them control over their long-term wealth creation.
Naturally, taking on the position of trustee of your SMSF brings with it responsibility due to the onerous requirements of legislation.

SMSF can now Borrow

Previously, a SMSF was prohibited from borrowing. Now leveraging strategies are available to acquire investment assets. For example a SMSF can buy property directly so a business can use their super to buy their business premises or a residential investment premises.

How it works?

The SMSF chooses a property for investment:

- Residential property must be acquired from an independent
vendor.
- Non residential property can be purchased for full value
from a related party so long as property is used for
business purposes.

SMSF obtains a loan approval.

SMSF provides deposit on the property.

The property is purchased via a third party (property trustee) who holds the property in the trust until the loan is repaid.

The SMSF becomes the beneficial owner of the asset. The SMSF must have the right to acquire legal ownership of the asset.

The lenders recourse (claim should there be a default) is limited to the asset purchased.

Rent income is received from which costs in relation to
property are paid.

Maximum loan to lending values apply according to the parameters under the legislation. For example one of the major lenders has provided a maximum loan term of 10 years and loan to value ratios for:

- Residential 72% to 1.5M
- Commercial 63% to 5M

To find out more about buying property for Self Managed Super Funds please contact us on 1300 664 373 or email enquires@prospergroup.com.au



This information is general and must not be relied upon in any way. You must seek professional superannuation advice to assist you according to your circumstances and the requirements of the SIS Act.


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Brisbane Precinct Comparisons 

Friday, November 14, 2008, 03:00 PM - Residential Property
Posted by Administrator

Prosper Group is Sydney's and Brisbane's leading property buyers agent ,specializing in sourcing residential and commercial investment properties.

Eastern Suburbs Snapshot
The Eastern Suburbs is a general term which is used to describe the metropolitan area directly to the east of the Brisbane central business district in Brisbane, Queensland. The suburbs in which the Eastern Suburbs cover include; East Brisbane, Balmoral, Hawthorne, Norman Park, Bulimba, Cannon Hill, Morningside, Wooloongabba, Coorparoo and Holland Park. Below is a snapshot of some of these suburbs.

Bulimba, Hawthorne & Balmoral:
Bulimba is a popular riverside suburb on the Brisbane River approximately 4 kilometres from Brisbane CBD. Oxford Street is a hub of café’s, restaurants and unique shopping experiences. The Ferry terminals make travelling around easy for residents and visitors. The Bulimba Ferry terminal is at the end of Oxford Street is convenient for residents and visitors travelling to and from the Bulimba Precinct. At the end of Apollo Road another ferry terminal provides a quick ride across the river to Portside at Hamilton with more cafés, restaurants, bars and cinemas. The Bulimba Memorial Park commemorating World War One memorial is an important venue for community functions and recreational activities.

Hawthorne is an inner eastern suburb of Brisbane, Australia. It is 4 km east of the CBD. Hawthorne started as a farming district in the 1860s, and was gradually subdivided as Brisbane grew. This was helped by the introduction of the ferry at the end of Lindsay Street. Hawthorne is home to several parks, and has numerous public transport options and a CityCat stop.

Balmoral is a suburb east of Brisbane and approximately 4km from the CBD. The suburb has a lively café and local cinema precinct. Balmoral offers several parks and is within five minutes of Colmslie Reserve and corners onto Hawthorne Park. Colmslie Reserve also provides boat access to the Brisbane River. Cannon Hill Shopping Plaza complements local stores in the suburb. Although Balmoral doesn’t have its own rail station (the closest are Cannon Hill and Morningside), regular bus services as well as the CityCat ferry services, ensure residents can access the city and other major centres easily. Residents are also close enough to the Gateway Motorway and the Southeast Freeway to make weekend trips to the Gold and Sunshine Coasts trouble-free.

East Brisbane:
East Brisbane is an inner suburb of Brisbane, Australia located 3km east of the Brisbane CBD. It is predominantly residential, with some original "Queenslander" style homes, but with an increasing number of apartment blocks. Major roads include Lytton Road, Wellington Road and Latrobe Street in the north and Vulture Street and Stanley Street in the south of the suburb. The eastern side of the suburb rises to a small hill with some views over Woolloongabba and the CBD and falls away to Norman Creek. Public transport to the suburb is now predominantly provided by regular bus services and frequent CityCat services, which leave from Mowbray Park. The suburb is also an easy walk from the Woolloongabba bus station.

Norman Park:
Norman Park is a suburb in Brisbane, and is located 4km east of the Brisbane central business district. Norman Park has numerous parks and recreational areas for residents in the area. Bordered by East Brisbane, Coorparoo, Camp Hill, Morningside and Hawthorne, Norman Park offers limited housing along the Brisbane River. The suburb is served by rail, bus and ferry services. Frequent commuter trains use Norman Park railway station on services to the City and Cleveland. Buses operated by Brisbane Transport also link the suburb to the City and Westfield Carindale. Cross-river ferries also operated by Brisbane Transport link the suburb with New Farm.

Northern Suburbs Snapshot
The Northern Suburbs is a general term which is used to describe the metropolitan area directly to the north of the Brisbane central business district in Brisbane, Queensland. The suburbs in which the North Eastern Suburbs cover include; New Farm, Teneriffe, Fortitude Valley, New Stead, Bowens Hill, Albion, Ascot, Hamilton, Clayfield, Windsor and Nundah . Below is a snapshot of some of these suburbs.

New Farm & Teneriffe:
New Farm and Teneriffe are only 2 km north from Brisbane’s CBD and are partly surrounded by the Brisbane River. The suburbs have one main commercial area close to New Farm Park, called 'Merthyr Village'. A wide variety of businesses also operate along Brunswick Street and in adjacent streets. At the river end of Brunswick Street a small cross-river ferry, operated by Brisbane Transport links New Farm and Teneriffe with Norman Park. New Farm can also be accessed via two CityCat stops (operated by Brisbane Transport) - at Sydney Street and at New Farm Park. The suburbs are serviced by several bus routes to and from the city centre. There are no direct services from the suburbs to the local high school at Kelvin Grove for students. New Farm is a trendy, inner-city suburb with easy access to fine dining and the great Valley nightlife.

Hamilton & Ascot:
Hamilton is about 5km from Brisbane’s CBD, lying on the north bank of the Brisbane River along Bulimba Reach. The riverside and prestigious suburb of Hamilton is in easy reach of the CBD, Gateway Bridge and the airport. The area is home to a long list of restaurants, cafes, and schools, as well as beautiful parks. It's major roads are Kingsford-Smith Drive and Racecourse Road, which it shares with Ascot. Racecourse Road is home to a huge variety of up market boutiques and designer shops. The area is accessible by public transport including numerous bus routes as well as the CityCat ferry service.

Ascot is located 7 km north- east from the Brisbane CBD, the suburb is well catered for in terms of public transport with many bus and train services departing from Ascot railway station. The CityCat River Service less than five minutes away at the jetty between Quarry Street and Raceview Terrace in Hamilton. Ascot is famous for the Spring and Winter Racing Carnivals held at the Eagle Farm Racecourse. Ascot’s residents have long been able to take advantage of Queensland’s great weather with restaurants and cafes lining Racecourse Road.

Nundah:
Nundah is located eight kilometres north-north east of the Brisbane CBD. Local amenities add to the suburb’s attractiveness. There are a number of state and private schools in neighbouring suburbs catering for both primary and secondary school children. The closest hospital, Royal Brisbane Hospital is only 15 minutes away. Westfield Shoppingtown at nearby Toombul services residents with major retail and supermarket outlets, while the Lutwyche shopping centre is also close by. Regular bus routes also make getting into and out of the City easy for Nundah residents. Both the Nundah Citytrain station and the Toombul Citytrain station are located within the suburb. Brisbane’s Domestic and International Airports are easily accessible by car or the new skytrain.

Albion:
Albion is only 5km north from Brisbane’s CBD. Albion is bounded by Wooloowin in the north, Ascot in the east, Newstead in the south, and Windsor to the west, with Breakfast Creek defining the suburb border in its south and south-west. Sandgate Road, a major road on the north side of Brisbane, runs through the middle of the suburb. A variety of housing styles, from former workers' cottages through to modern brick homes and unit blocks, can be found in Albion. Albion has excellent public transport with a railway station supplemented by a regular bus service that operates along both Sandgate and Crosby Roads. It is also close to the Brisbane airport and has easy access to the Gateway Motorway that runs south to the Gold Coast and north to the Sunshine Coast. Recreational areas include parks, bike and walk ways.

Windsor:
Windsor is an inner northern suburb of Brisbane, located approximately 3.5km from the CBD. Little development occurred in Windsor until the construction of the Bowen Bridge in 1862, allowing easier access to the district. At that time the district was known by its primary transport artery, Bowen Bridge Road. A trip into the City from Windsor train station will take residents less than 15 minutes. Regular bus routes offer similarly timed services for residents not in close proximity to the train station. The local retail stores in the area are supplemented by larger retail chains in Lutwyche Shopping Centre.

Western Suburbs Snapshot
The Western Suburbs is a general term which is used to describe the metropolitan area directly to the west of the Brisbane central business district in Brisbane, Queensland. The suburbs in which the Western Suburbs cover include; Kelvin Grove, Paddington, Alderley, Red Hill, Spring Hill, Herston, Newmarket, Milton, Wilston and Ashgrove. Below is a snapshot of some of these suburbs.

Kelvin Grove:
Kelvin Grove is an inner northern suburb of Brisbane, located 4 kilometres out from the CBD. It is primarily residential with tree-lined streets and some commercial and light industrial activities along its main thoroughfare, Kelvin Grove Road. It is also the location of the Kelvin Grove Campus of the Queensland University of Technology, and of La Boite Theatre, Queensland's second largest theatre company. Kelvin Grove has plenty of small, local shops however the closest major shopping centres or supermarkets are located in Ashgrove.

Paddington:
Paddington is an inner suburb of Brisbane, located 2 km west of the Brisbane CBD. Paddington is located on a number of steep ridges and hills. Many original and distinctive Queenslander homes can be found in the suburb. Houses are frequently built on stumps, owing to the steep nature of their blocks. The main thoroughfares of Paddington are Given, La Trobe and Enoggera Terraces. Most shops are located on Given and La Trobe Terraces and Caxton Street. Buses operated by Brisbane Transport continue to serve the suburb.

Alderley:
Alderley is approximately 7km north-west of the Brisbane’s CBD. One of Brisbane's older suburbs, Alderley is very hilly, with many homes enjoying views of surrounding suburbs and the city. The Alderley railway station transports commuters to and from the city. Buses operated by Brisbane Transport continue to serve the suburb. Residents of Alderley enjoy access to a variety of retail shopping outlets including a Bi-Lo supermarket and many convenience and take-away stores. Major regional shopping centres; Brookside and Stafford City are less than 10 minutes away. A number of large parks and preserved nature areas are scattered throughout the suburb.

Red Hill:
Red Hill is an inner suburb of Brisbane, Australia 3km west of the Brisbane CBD. The suburb is very hilly and mainly residential, with shops and small businesses located on Musgrave and Waterworks Roads. The suburb is popular with owner-occupier professionals working in the CBD and has a healthy rental market based on young city workers and some students. Regular bus routes also make getting into and out of the City easy for Red Hill residents. St Brigid’s Catholic Church is a unique landmark in the area. The suburb is also the home of Brisbane's National Rugby League team, the Brisbane Broncos.

Southern Suburbs Snapshot
The Southern Suburbs is a general term which is used to describe the metropolitan area directly to the south of the Brisbane central business district in Brisbane, Queensland. The suburbs in which the Southern Suburbs cover include; South Brisbane, West End, Highgate Hill, Dutton Park, Fairfield, Yeerongpilly, Indooroopilly, St Lucia, Annerley and Yeronga. Below is a snapshot of some of these suburbs.

West End:
West End is an inner-city suburb of southern Brisbane, 3km from the CBD. West End is bounded by the Brisbane River to the west and the south. The southwestern part of West End, along the Brisbane River, is also referred to as Hill End. West End is adjacent to the suburbs of South Brisbane and Highgate Hill. These three suburbs make up a peninsula of the Brisbane River. The area's major attraction is its café and restaurant scene, as well as its shopping centered along Boundary Street. It is also known for its high concentration of ethnic and organic grocery stores, which reflect the liberalism of many West End residents. The river ferry terminal is located to the south of the suburb in Hill End. Regular bus services operate into the CBD.

St Lucia:
St Lucia is roughly 4km south-west from Brisbane’s CBD. St Lucia is a beautiful leafy and friendly suburb with some lovely river views and parks. The University of Queensland is the primary focus of St Lucia, the university and residential colleges cover a large proportion of the suburb. The total number of students is around 27,500 from more than 117 countries. St Lucia has total of 4,036 dwellings of which 2,003 are apartments and 391 are townhouses, giving a total of 2,394 medium density dwellings. The CityCat ferry stops at two terminals in St Lucia, the Guyatt Park CityCat Terminal and the University of Queensland Terminal. There are regular bus services that ferry passengers to all the major points around the area. The nearest train station to St Lucia is the Toowong Train Station which is approx 1km away.

Fairfield & Dutton Park:
Fairfield is a suburb of Brisbane, located 5km south of the Brisbane CBD on the Brisbane River. The suburb is mainly residential with house and unit accommodation. Fairfield has easy access to major arterial roads, schools, shops and the other infrastructure so necessary for family and professional living.

Fairfield is well located with close proximity to many public and private amenities. The closest hospital is the Princess Alexandra Hospital (approx five minutes.) It is also close to the University of Queensland across the river at St Lucia – there is a ferry and City Cat service from nearby Dutton Park. A train station is located in the suburb and plenty of bus routes heading to the university and the City are available to residents. Major shopping is at Fairfield Garden Shopping Centre supplementing the on-road retail outlets. Being near to West End gives the suburb a convenient restaurant area close by.

Dutton Park is a suburb of Brisbane, located 2.5km south of the Brisbane CBD. The suburb is predominantly residential, with some light industrial and commercial areas. The suburb is dominated by Dutton Park, which includes a large recreation area and former public cemetery. The former Boggo Road Gaol is also located in the suburb. In 2006, the Eleanor Schonell Bridge was opened, linking the St Lucia campus of the University of Queensland with Southern Brisbane. Dutton Park is served by the Dutton Park Railway Station. Regular bus services operate into the CBD.

Indooroopilly:
Indooroopilly is a suburb 7km south-west from the Brisbane CBD. The suburb’s central position, thriving commercial, office and retail sector, and proximity to the CBD and University of Queensland have promoted a recent surge in population and supported new residential unit developments. Indooroopilly residents enjoy extensive community facilities including Gandel’s Indooroopilly Shoppingtown (formerly Westfield’s), Citytrain services and a bus interchange. The commercial and shopping area near the railway station has in recent years been fully made over which makes for an attractive precinct for nightlife and a vibrant street café scene.

To find out more about buying property in Brisbane or Sydney please click here Brisbane Property Buyers Agent or Sydney Property Buyers Agent.



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