The Property Book

Nerang

AUGUST

2010

the

Property Book YOUR LOCAL NEWSLETTER & BUYERS PROPERTY GUIDE

PROPERTY REMAINS A SURE BET Slow and steady can win the race!

Has Your Investment Property Been Abandoned?

What happens next!

Does ‘green’ add value?

The Property Council of Australia’s response

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a $100 fuel voucher!

Just answer 3 simple riddles!

Who won last month’s $100 voucher?

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PROPERTY REMAINS A SURE BET As property punters across Australia hedge their bets both ways, Mike Gray, Principal of First National Nerang is bringing some much needed clarity, predicting property prices’ growth will slow but that the market will remain buoyant despite ongoing uncertainty and increased consumer nervousness.

Mike remains optimistic saying there remains plenty of opportunities for buyers and sellers, but cautions that banks need to adopt a responsible approach to future interest rates.

“On average, I expect property prices to continue slowly rising for the remainder of 2010 as ongoing supply shortages keep the pressure on, driving prices upwards, as outlined in the First National Real Estate’s 2010 Mid Year Update released this week,” Mike said.

“The market has become very erratic given the current market conditions and volatile European economies, but the increasing supply versus demand issue will continue to dog the industry.

“As long as demand outstrips supply, the market will remain competitive and

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thereby force prices up.

“While interest rates may impact on affordability if they continue to rise, and nervousness about the European economies may adversely impact upon consumer confidence, the reality is there are more buyers out there than available stock and that produces a competitive market.”

Mike says house prices represent the most polarising debate for the property market for the remainder of 2010.

Some commentators are predicting a property bubble and are waiting for it to burst, while others say that periods of rising interest rates often result in accelerated or steady house price inflation.

“Regardless of which way house prices go, there is opportunity for buyers and investors alike, depending on their individual circumstances,” Mike said.

“The one thing I am sure of is that property will continue to represent great value in the coming six months.”

House prices are predicted to continue increasing by up to 10 per cent by the end of the year according

to 70 per cent of First National members surveyed recently, along with strata property prices and land prices.

It is predicted rental vacancy rates may reduce slightly over the second half, and so ease pent up demand, while rental rates are predicted to increase, making it potentially just as difficult for renters to get into appropriate accommodation.

“Our survey showed 65 per cent of our agents saw vacancy rates decrease mostly by up to 5 per cent, and this trend is predicted to continue into the back end of the year, with 70 per cent of our members predicting further declines,” Mike said.

“Investor activity is expected to increase by up to 5 per cent by 43 per cent of our survey respondents, by between 10 and 20 per cent by 45 per cent of our survey respondents and by more than 20 per cent by around 11 per cent of our survey respondents.”

Just over 67 per cent of our members responding to the survey agreed with recent reports that there is a trend that more Gen Xers and Baby Boomers are opting to stay in their homes, making it even harder for Gen Yers to get into the property market.

ANALYSIS OR SCAREMONGERING? First National Real Estate Nerang Principal, Mike Gray, is calling for scaremongering real estate analysts to be held accountable, after predicting a ‘housing bubble burst’ or ‘affordability crisis’, amidst claims Australia has the most overpriced property in the world.

“These types of claims are incredibly frustrating when you know they are based on a lack of understanding of the complexities and dynamics of the Australian property market,” Mike said.

“The reality is that we probably have one of the best buyers’ markets at the moment and houses at some of the most affordable levels in decades.

Strong population growth is driving demand, and a crucial undersupply of stock is putting a floor under house prices.”

JULY $100 WINNER

Congratulations to Lisa Gilmer, our July winner of the $100 voucher. To win, Rebecca answered 3 riddles to be in the draw. Turn to page 4 to for this months brain teasers - and win!

According to Mike, the market is already softening, with the slowing of house price increases creating some real opportunities for bargain hunters, first time buyers and investors.

“In our recent 2010 Property Outlook Mid-Year Update, we highlighted Australia’s leading mortgage aggregator’s figures which show almost 40 per cent of loans drawn in April were to investors - the highest number recorded,” Mike said.

While it is true that immigration levels, the highest since World War II, are generating significant demand for housing, much of this debate is overheated by the political agenda.

“But what no one is talking about is the fact that Government is one of the major barriers to increasing supply of housing. Ineffectual planning and approvals processes are the major barriers to increasing supply, so it is Governments that will continue to drive the market into the future,” Mike said.

“Compounding all this is the Prime Minister’s comments that she no longer supports a ‘Big Australia’, but a ‘Sustainable Australia’ which can only beg the question ‘does that mean you are going to

lower immigration levels’, which will impact significantly on the Australian property market.

“When it comes to price trends, they correlate more with the level of public confidence than the level of interest rates, which can have a positive influence on confidence as they are a sign of an improving economy.

“Price growth revived late last year, along with confidence, as emphasis shifted to news of recovery, falling rates of unemployment and a resurgent resources sector, all factors unique to the Australian market.”

Mike said while he supported ‘free speech’, analysts needed to be responsible and look at all sides of the story when making pronouncements about the property market.

Did you know...?

A First National Nerang is the REI 0 201 a) trali (Real Estate Institute of Aus

Australian Residential Agency of the Year in the medium office size category.

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Does ‘green’ add value?

of an estimated 14 tonnes of green house gases by the average Australian household each year.

Daily household activities such as heating and cooling, lighting and the use of major appliances are all large contributors to the production of greenhouse gases.

As concern perpetuates regarding the impact of climate change there is a growing shift in social consciousness and government policy towards the adoption of more environmentally sustainable practices and lifestyles.

The contentious topic has swept the globe with many countries establishing regulations to reduce energy emissions. In Australia we are witnessing the emergence of new regulatory policy to develop and enforce national housing energy efficiency standards.

Introduced in 2005, it is now mandatory for all new residential houses and apartments to comply with a 5 star energy rating.

The national energy efficiency standard, while still relatively flexible, is aimed at reducing household energy emissions which result in the generation

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To address the issue, the Australian government launched the Green Loans Program, a nationwide program to assess the sustainability of existing residential homes. The free service involves the review of a property by a qualified assessor who provides an assessment of a household’s water and energy use and develops strategies for how the rating can be improved.

As part of the Green Loans Program approved applicants are also eligible to receive a $10,000 loan with no interest for a period of up to 4 years, to purchase such ‘green’ technologies as water tanks, insulation and solar hot water systems, with the intention of reducing green house gas emissions and water consumption.

Furthermore, on January 1st 2010 the Queensland Government introduced a new regulation that

requires sellers of residential property to complete and supply a Sustainability Declaration – a two page form which assesses the energy, water, safety and access aspects of a property.

This move follows the mandatory disclosure of energy consumption by sellers of residential property in the ACT, established since 1999.

But as similar regulations are introduced in other states how will property values be affected?

Does subscription to sustainable trends really save you money and add value to a property?

According to an independent study commissioned in 2005 by the Department of Environment, Water, Heritage and the Arts (DEWHA), real estate in Australia’s Capital Territory demonstrated a notable correlation between the energy efficiency rating of a house and its value.

While the trend towards sustainable housing is still relatively new, the link between a property’s energy rating and its value will only increase as knowledge and adoption of ‘green’ initiatives grows.

FUEL VOUCHER WITH THIS MONTH’S BRAIN TEASERS

To o be in with a chance just answer any one of the following Brain Teasers correctly. For every correct answer you will have one chance in the draw.

Submit your answers at http://blog.nfn.com.au Question 1: Question 3: What goes around the world but You use a knife to slice my head and weep beside me when I am dead. stays in a corner?

What am I? Question 2: Last months answers: Give me food, and I will live; give 1. A mirror me water, and I will die. What am 2. A piano 3. An echo I?

Has Your Investment Property Been Abandoned?

One set of circumstances that property managers and self-managed property investors may encounter is the property that has been abandoned by a tenant.

Dealing with a property that has had the tenants leave without notice can be very difficult, but it must be noted here that in dealing with this situation property managers must take the right steps legally so that there is not problems at a later date.

How to tell if a tenant has abandoned a property 1. The tenant cannot be contacted by phone – the phone or phones have been disconnected 2. The property looks to be in a state of disrepair 3. The rent is in arrears Abandoned property Check with the laws in the state where the problem arises, but for instance in Queensland this is the procedure: • The normal 24 hour notice needs to be given to enter the property

• Once the property has been inspected by the property manager and reasonable doubt exists as to whether the property has been abandoned a Form 15 Abandonment Termination Notice must be issued or an application can be made to the Queensland Civil and Administrative Tribunal (QCAT) for the premises to be declared abandoned • If the Form 15 is issued then 7 days must elapse for the tenant to dispute the notice Abandoned Chattels If a tenant has abandoned the property and has left chattels at the property care needs to be taken to see that the correct steps are taken in dealing with the property.

• If there are personal documents they must be returned to the tenant within 7 days • If the tenant cannot be contacted then the personal documents must be handed over to the Public Trustee with 7 days

• Goods up to the value of $1500 that are unsafe to keep or store or would not cover the cost of moving and storage can be disposed of • Contacting a second-hand dealer for an inventory and valuation would be the best way to deal with this situation • Goods that do not meet with this criteria should be stored by the property manager for at least one month and then using the proper procedure the goods can be auctioned • Proceeds of the sale can be used to cover any costs of sale and storage, but any excess funds recovered must be paid to the Public Trustee within 10 days of the auction date In all cases it is imperative that good detailed paperwork be kept. The tenant will have certain rights and they must also go through the right channels to lodge any objection.

Pssssst... Here’s a good tip for buyers, sellers and investors...

Did you know...?

Australia wide, there are close to that 500 First National Offices and the y ciall offi First National Nerang is

ONE office in Queensland

2010 Number

An easy way to stay “in tune” with the value of your home and the local property market is the Weekly Property Bulletin and - it’s FREE. It’s an easy to read email detailing everything that’s just listed, just sold, price changes, open homes, for rental and news articles all with quality photos and descriptions.

Join thousands of property owners, investors, buyers and sellers that use the Property Bulletin to keep their “finger on the pulse” of the local market. Simply call us on 0755960055 or email sales@nfn.com.au and ask to receive the Weekly Property Bulletin.

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2010 Australian Agency of the Year

Nerang

NERANG Neat As A Pin • Two bedrooms • Large open plan living • LU garage • Private paved courtyard • Reasonable body corp • Pool in the complex

VACANT LAND

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Medium Residential Agency

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• Close to rail link, buses and the M1, perfect the busy commuter!

Price: $249,000 Web ID: 1284648 Contact: Andrew Davidson 0411 760 600

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Pick Of The Bunch!

• Three bedrooms, ensuite • Tiled open plan living and dining • Terrific modern kitchen • Air conditioning • Private fenced courtyard • Well managed secure complex

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• Lockup garage plus plenty of visitor parking Price: $319,000 Web ID: 1395827 Contact: Andrew Davidson 0411 760 600

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NERANG

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Super Neat Lowset Villa • Three bedroom villa • Open plan living • New floors & lighting • Modern kitchen • Single garage plus parking bay • Well maintained complex with

Various Building Blocks Build the home of your dreams on one of our many vacant lots for sale.

Lots vary from residential sites, Price: From $268,000 prestige lots with coastal views to Contact: The sales team private acreage lots.

07 5596 0055 What are you waiting for? Call now!

CARRARA

HIGHLAND PARK

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Private,Trendy Townhouse and tennis court • Three bedrooms • Potential rent return of $300-$350pw • Spacious open plan living area Price: $285,000 • Timber laminate flooring • Covered & enclosed patio area Web ID: 1405987 • Lockup garage plus parking bay Contact: Susie Gale 0406 901 350 • Friendly, quiet complex with pool

NERANG

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pool and BBQ area • Close to parkland, station and bus transit centre.

Price: $299,000 Web ID: 1401765 Contact: Shawn Barber 0404 257 243

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Price Slashed - MUST SELL • Garage converted to rumpus • Three bedrooms • Close to everything including • Separate lounge and dining areas riverside Price: $349,000 • Air conditioning • Spacious fully fenced backyard Web ID: 1354574 Contact: Steven Hayes • Pet friendly 0421 643 871 • Big timber entertaining deck

quick search these properties and more at www.nfn.com.au

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the Year

Nerang

NERANG

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Medium Residential Agency

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Its PERFECT in Every Way! • Terrific fully fenced backyard • Auto lockup garage • Three bedrooms • Backs to parkland for added privacy • Tiled open plan design Price: $359,000 • Lovely modern kitchen Web ID: 1405592 • Vacu-maid system • Air conditioning and full insulationContact: Julie Morgan-Kemp 0409 870 301 • Long covered outdoor living area

NERANG

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WORONGARY

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Smart Starter!

• Three bedrooms • Walk in robe and open ensuite to master • Open plan living and dining • Modern kitchen with dishwasher • Timber laminate flooring

TALLAI

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Touch Up and Save!

• Double garage with big workshop • Three bedrooms • Close to shops, schools and bus stop • Separate lounge and dining areas Price: $385,000 • Air conditioning Web ID: 1405972 • Timber flooring Contact: Shawn Barber • Rear deck with shade sail 0404 257 243 • Large fully fenced backyard

Get in Before the Bank!

• 4559m2 vacant building block • Amazing panoramic views over the coast • Underground power, water and phone • Large cut pad

BEECHMONT

HIGHLAND PARK

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Aaaah, Fresh Mountain Air • 1148m2 lot, backs to private acreage • Three bedrooms, ensuite • Lockup garage, shade sail parking plus additional off road parking bay • Separate sauna with shower Price: $398,000 • Spacious open plan design Web ID: 1388187 • Terrific modern kitchen Contact: Julie Morgan-Kemp • Air conditioning 0409 870 301 • Long covered patio & BBQ hut

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• Air conditioning • Covered outdoor living area • Loads of off road parking Price: $379,000 Web ID: 1401732 Contact: Shawn Barber 0404 257 243

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• Driveway has been cut • Cul-de sac position surrounded by quality homes Price: $395,000 Web ID: 1280005 Contact: Shawn Barber 0404 257 243

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HOT Property, Cool Price!

• Long covered outdoor living area • Three good sized bedrooms • Open plan lounge & dining area • Extra large auto lockup garage with bay window Price: $399,000 • Air conditioning Web ID: 1405964 • Big open yard with a great cubby Contact: Shawn Barber house for the kids 0404 257 243

quick search these properties and more at www.nfn.com.au

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the Year

Nerang

NERANG Down by the Riverside!

• 4 bedrooms; ensuite to master • Separate lounge and family areas • Neat and tidy kitchen with dishwasher • Air conditioning • Large covered pergola

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Medium Residential Agency

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• Terrific flat, fully fenced yard backing to river • Double lockup garage Price: $407,000 Web ID: 1381283 Contact: Shawn Barber 0404 257 243

NERANG

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NERANG

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Position and Potential • Three bedrooms • Open plan living and dining • Air conditioning • Terrific covered rear timber deck • Inground pool with water feature • Side access to shed with power

NERANG

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• Double garage with workspace • Great location backing to park & walking distance to shops Price: $395,000 - $419,000 Web ID: 1393053 Contact: Julie Morgan-Kemp 0409 870 301

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Private and Central!

• Double lockup garage • 4 bedrooms plus ensuite • Minutes to schools, shops and buses • Massive open plan living Price: $425,000 • Separate living areas Web ID: 1345213 • Tall airy 9ft ceilings Contact: Steven Hayes • Covered outdoor living area 0421 643 871 • Excellent level fully fenced yard

The Best of Both Worlds!

• Auto double lockup garage • Close to riverside parkland and • Three bedrooms, ensuite handy to Nerang Train Station • Spacious tiled open plan living Price: $435,000 • Terrific modern kitchen Web ID: 1380886 • Air conditioning • Private courtyard with covered Contact: Shawn Barber patio area 0404 257 243

CLEARVIEW / NERANG

NERANG

Green Garden Wonderland • 4 bedrooms plus ensuite • Separate living areas • Big kitchen with dishwasher • Air conditioning • Massive covered entertaining area • Wrap around verandahs

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• Stunning manicured grounds • Level lot backing to parkland • Double garage plus 2 street access Price: $429,000 Web ID: 1363839 Contact: Steven Hayes 0421 643 871

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Backs to Acres of Parkland!

• Cavity brick construction • Three bedrooms, ensuite • Separate living areas • Air conditioning • Rear covered patio area • Level block backing to parkland

quick search these properties and more at www.nfn.com.au

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• Double LU garage with bathroom • Highly sought after street close to Nerang CBD Price: $449,000 Web ID: 1398111 Contact: Susie Gale 0406 901 350

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the Year

Nerang

NERANG

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Medium Residential Agency

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Big Home, Small Price • Private inground pool area • 4 double bedrooms plus ensuite • Double auto lockup garage • Loft style office plus study • 855m2 fully fenced lot Price: $469,000 • Spacious formal lounge • Huge kitchen with walk in pantry Web ID: 1369278 Contact: Paul Moitzi • Huge informal living area 0423 589 958 • Media room plus separate bar

HIGHLAND PARK A Delightful Surprise • Three bedrooms, ensuite • Separate living areas • Lovely open plan kitchen • Ducted air conditioning • Covered outdoor living area • Quiet low traffic cul de sac

WITHEREN

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• Double LU garage, 9mx7.5m workshed with double carport plus side access Price: $479,000 Web ID: 1284639 Contact: Andrew Davidson 0411 760 600

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BUNDALL

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Renovated Liquidation • Three bedrooms, ensuite • Main bathroom with spa bath, additional external bathroom • Open plan tiled living and dining • Modern new kitchen • Air conditioning

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Beautiful Country Homestead • Inground pool with spa • 2.5 acres of stunning usable land • 2 bay shed plus double carport • Four bedrooms, ensuite • Multiple paddocks, 2 dams Price: $569,000 • Separate spacious living areas • Air con & combustion fireplace Web ID: 1392977 Contact: Andrew Davidson • Stunning modern kitchen 0411 760 600 • Covered outdoor living area

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• Double garage with workshop • Minutes to Surfers Paradise and Southport CBD Web ID: 1398099 Contact: Shawn Barber 0404 257 243

NERANG

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Looking for New in Nerang? • Side access to a 4.5 x 7.5m shed • Landscaped lot backing to reserve • Four bedrooms, ensuite • Hinterland views • Separate big living areas $539,000 • Gorgeous kitchen with European Price: appliances Web ID: 1390186 • 45m2 covered outdoor living area Contact: Susie Gale • Double auto lockup garage 0406 901 350

LOWER BEECHMONT

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One Of A Kind Acreage!

• Ideal to build a massive home • 2.15 acre premier hilltop position • Deep rich soil and fully fenced • Close to shops & cafes • Level to gently sloping Price: $569,000 neg • 100% usable and cleared Web ID: 1288310 • Panoramic views to the Gold Coast and the Great Dividing Contact: The Sales Team Ranges - can never be built out 07 5596 0055

quick search these properties and more at www.nfn.com.au

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the Year

Nerang

MOUNT NATHAN Acreage - Needs Urgent Sale!

• Expansive 4 bedroom home • Ensuite with spa bath to master • Spacious separate living areas • Air conditioning & fireplace • Large kitchen with gas cooking • Massive covered entertaining area

MOUNT NATHAN Private Acreage Hideaway • Four large bedrooms, ensuite • Ultra modern kitchen • Polished timber flooring • Massive open plan living • Air conditioning • Wide poolside timber deck

MAUDSLAND Acreage - Hot To Sell!

• Owner wants all offers • 4010m2 landscaped lot • 4 bedrooms, office & ensuite • Separate living areas • Huge covered entertaining area • Inground pool with decking

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Medium Residential Agency

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• Very private inground pool • Elevated 2005m2 lot • Double garage Price: offers over $570,000 Web ID: 1363871 Contact: Julie Morgan-Kemp 0409 870 301

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• Double garage PLUS 2 bay shed • 4000m2 landscaped and super private lot Price: $629,000 Web ID: 1355170 Contact: Julie Morgan-Kemp 0409 870 301

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• Double garage plus side access to a 2 bay shed • 5 mins to Nerang & Oxenford Price: offers over $679,000 Web ID: 1324066 Contact: Julie Morgan-Kemp 0409 870 301

NERANG

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One with Nature • 3 bedrooms, ensuite to master • Open plan design with tall raked timber ceilings • Stunning ultra modern kitchen • Timber flooring to living areas • Bi-fold doors to the covered

ADVANCETOWN

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Affordable Country Living • 7.5 acre lot with 2 street access • Three bedrooms, ensuite • Spacious lounge, separate rumpus • Modern open plan kitchen • Recycled hardwood floors • Ducted air conditioning

GILSTON

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outdoor living area • Off road parking for 10 cars • 8588m2 lot with native gardens Price: $599,000 Web ID: 1391891 Contact: Andrew Davidson 0411 760 600

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• Short ride to horse arena and various trails • 9 x 6m two bay shed with power Price: $665,000 Web ID: 1401719 Contact: Shawn Barber 0404 257 243

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OWNER INSTRUCTS - SELL!!• Inground salt pool and spa • Four bedrooms plus ensuite • Massive 6x9m shed with power • Self contained studio apartment • Massive 3.99 hectare lot Price: $699-729,000 • Spacious lounge room • Stunning polished timber floors Web ID: 1353075 Contact: Steve 0421 643 871 • Lovely country kitchen Julie 0409 870 301 • Separate big office

quick search these properties and more at www.nfn.com.au

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the Year

Nerang

MOUNT NATHAN Huge Country Home!

• Five big bedrooms plus study • Massive open floorplan with 3 distinct living areas • Separate kids rumpus room • Huge gourmet kitchen • Ducted air conditioning

HIGHLAND PARK Must Be Sold...Yesterday!

• 280 degree breathtaking Gold Coast and Hinterland views • Four queen bedrooms, ensuite • Expansive open living & balcony areas over 2 levels • Huge modern kitchen

WORONGARY Private Family Acreage • 5200m2 landscaped lot • 4 bedrooms, ensuite to master • Formal lounge and dining room • Open plan family and meals area • Terrific big modern kitchen • Beautiful private inground pool

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Medium Residential Agency

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• Covered outdoor living area • Big 2 bay shed, carport, double garage • 3072m2 lawned and landscaped lot Price: $699,000 Web ID: 1353942 Contact: Steven Hayes 0421 643 871

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• Salt water pool with Fijian shellstone surrounds • Double garage plus parking bay Price: $749,000 Web ID: 1382111 Contact: Julie 0409 870 301 Paul 0423 589 958

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• Big 2 bay steel workshed with car hoist and added shade sail parking Price: $759,000 Web ID: 1388468 Contact: Andrew Davidson 0411 760 600

GILSTON

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Quality Acreage Lifestyle • 4 double bedrooms, ensuite • Formal lounge opening out to a expansive outdoor living area • Separate family and meals area • Modern country kitchen • Double auto garage, 2 bay shed

HIGHLAND PARK

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• Shady wrap around verandahs • Town and tank water • 4331m2 lot, fully fenced Price: $749,000 Web ID: 1401740 Contact: Shawn Barber 0404 257 243

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Location, Size & Views • Large covered view filled deck overlooking the pool • 5 large bedrooms over 2 levels • 3 ensuites, 1 two way and 1 main • Double lockup garage $835,000 • Large games room with wet bar/ Price: kitchenette for dual living Web ID: 1388267 • Open plan main living area Contact: Shawn Barber • Vaccu-maid and ducted air con 0404 257 243

MOUNT NATHAN 8.5 Acres of Elegance • 4 double bedrooms; ensuite • Ensuite plus 2 main bathrooms • Amazing big designer kitchen • Enormous open floorplan • Triple garage, 2 bay workshop • Town & filtered tank water

quick search these properties and more at www.nfn.com.au

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• IG pool with mountain views • 8.39 acres, 2 dams, spelling yards, paddocks, horse arena & more Price: $1,800,000 Web ID: 1401369 Contact: Steven Hayes 0421 643 871

Office 55

960055

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

Market Update

What’s the right price for property?

It’s one of those clichés you’ll often hear in real estate ... properties that are priced appropriately are selling. It seems so obvious, really.

When you’re making such a big investment surely you’d only do it at the right price?

But of course buying houses is emotional and there’s so much more that goes into it than rational thinking about whether it is money well spent. It could be the look and feel, the layout, or the location that sways one buyer to pay a whole lot more than the rest.

If you want to look at how complicated human decisionmaking is just look at how we pick which political parties will win government.

Now that there’s a federal election looming, we’ll all have more than enough opportunity to gawk from the sidelines as votes are won or lost on looks, tone, sound, hair colour, and a little bit of policy, real or perceived.

Nevertheless, when it comes to houses, a lot of real estate agents are saying that buyers are being a lot more careful, and really weighing up where to put their dollars. Less competition from other buyers is providing house hunters with more choices, and they’re taking their time, choosing wisely, and demanding properties are up to scratch.

Agents are saying many vendors are yet to catch up with the swift market cooling of the last couple of months and want higher prices than buyers are prepared to fork out.

I saw a great example of the old price-is-right mantra this week when I spied a sandstone home for sale. Double fronted, it looked like the perfect family pad - except that its immediate neighbour was the car park of a sex shop, and only four doors down, across the road, was a train line.

Oh and it had a pretty busy road a few doors the other way.

It could have easily been a house that languished on the market while the vendor held out hoping that the prestige of the neighbourhood that it bordered might rub off. But the vendor was either in a hurry to sell or had a good sense of where the market was at because the home was priced at about $200,000 less than comparable places just a few streets away.

On the first open there was a surprising buzz – not quite a swarm – but a healthy hum of activity from house hunters.

And less than a week later, a big SOLD sign was slapped up out the front.

Part of the problem for vendors is the market has been moving so fast lately that it’s hard to keep up. One moment it’s hot and the next it’s not. In pockets

there’s still plenty of buying action, for example one Sydney agent says she had 53 people inspect a property in the trendy inner west over the weekend.

But in others, real estate agents are ringing around trying to drum up interest.

When you’re selling working out what price you should go for is hard. But just as house hunters are told to find up to a dozen recent comparable sales when they are researching a house’s value, vendors can do that too. The advice for house hunters is to look at the prices places nearby have sold for in the last six months, being careful to compare apples with apples by finding properties that have similar land size, bedroom numbers, layouts and car parking. Sales in the last three months are particularly telling.

If you’re a vendor and you want to find out where the buyers’ thinking is in terms of money, you’d do well to do that research. That way you will find out which direction the market is going in your area, and will be using the same pricing method as your buyers. Of course, if you decide your home has special features and it’s worth holding out for a better price, you might just be lucky – after all spring is just around the corner and the warmer weather brings out the buyers.

Written by Carolyn Boyd source: http://bit.ly/9kj8ir