Over 70% of the world's population live in the Tropics and Cairns is said to be the most liveable tropical city. Being located in the tropical north o

Over 70% of the world's population live in the Tropics and Cairns is said to be the most liveable tropical city. Being located in the tropical north of Queensland, at Latitude 16 degrees 55 minutes south and Longitude 145 degrees 28 minutes east, allows Cairns to enjoy an alfresco way of life, which is the envy of most Australians. Being outdoors is what life is all about in Cairns.

Cairns basically has two seasons. May to November is considered winter. The temperatures are warm - an average of 20C minimum, 29C maximum - with balmy nights and little rain, while December to April is considered summer. The temperatures are a few degrees higher - an average of 23C minimum, 31 maximum - with warm rain, or liquid sunshine, as we like to call it, and higher humidity.

Cairns has a diverse, cosmopolitan atmosphere. It may be the fresh air, its proximity to the sea or even the rain-forested mountains that encircle the city, but whenever you talk to people who live in Cairns, they all say the same thing - living in Cairns gives you a sense of satisfaction. Most people who live here have migrated from other parts of Australia. Most only came for a holiday, but the allure of the lifestyle, its friendly atmosphere and relatively low crime rate convinced them that this is the place to live and raise a family.

Cairns is more than just a place to live - it's a lifestyle. With the multitude of alfresco cafes and restaurants, which rival Melbourne for quality and variety, people-watching is a favourite Cairns pastime, and there is a varied range of people to watch, drawn to Cairns from all over the world to see the Reef and Rainforest - which are among the most beautiful and diverse locations on Earth.

Cairns' population is around 130,000 and is expected to grow at around 3% a year over the next ten years. At this rate, it is likely to outpace the current rate of new dwellings being built, which could put upward price pressure on existing residential property.


Author: Gary Burke, Cairns and Co

With today's technology, is it possible to buy a property without seeing it in person. Real estate agents display most of their property listings on w

With today's technology, is it possible to buy a property without seeing it in person. Real estate agents display most of their property listings on websites with photographs and property descriptions. Surely from this information, you would be able to gauge whether you like the property and whether you would like to make an offer.

Real estate sales agents work on behalf of the seller. This means that they are obligated, at law, to achieve the highest price they can for the seller. When selling anything, people want to advertise all the good points and try not to mention anything unsavoury. So predominantly, what is shown on a website will be a property's good points. So does this mean you have to physically view all properties before choosing one to buy?

Viewing every property will take a lot of time and will cost a lot of money in travel expenses if the properties are not local to you. What you need is someone you can trust to find out all they can about the property before you make an offer to buy. What you need is a buyer's agent.

Buyer's agents are generally a disbelieving lot - they take nothing at face value. A sales agent's job is to sell; a buyer's agent's job is to investigate. Buyer's agents will inspect a property from your point of view, looking for what has not been publicised. They also have access to good local building and pest inspectors and conveyancers, which can also save you time and money. Your buyer's agent will report back to you everything you need to know about the property you wish to buy, so that you can make an informed offer.

So, should you buy investment property sight-unseen? If the right research has been done and the right questions have been asked, and the viability of the property has been established, viewing the property will not add anything to the equation. So, yes, by using a buyer's agent to act as your eyes and ears, you can buy property sight-unseen.


Author: Gary Burke, Cairns and Co

When the market takes a dip and many people are trying to get out, properties usually take much longer to sell and this can have a negative effect on

When the market takes a dip and many people are trying to get out, properties usually take much longer to sell and this can have a negative effect on their sale price.

A buyer's agent's site may seem a strange place to find advice on selling property. However, many buyers are also sellers, and if they can secure a better price for the property they are selling, they will have more options when buying their next property.

Take a look at the following scenario: the market has taken a dip. Everyone seems to have listed property for sale, including you, but nothing is selling. Advertised property has a use-by date and if it is on the market too long it will become stale. People will start questioning why it is not selling. Your sales agent will tell you that the market is not responding to your property and you should drop its price if you want it to sell!

So, how can you avoid your property going stale in a slow market? Before contacting a sales agent, be prepared: tidy up your property ready for sale and, if necessary, have a building and pest inspection done and have your property professionally valued.

Next, start looking for a sales agent. You may need to interview a few before you find the right one, but keep looking and don't settle for second best - it could cost you dearly.

Let the agent know you are committed to selling, but you do not want to compromise your property's value by having it exposed to the current market conditions. You must tell the agent you do not want your property advertised by any means - not in newspapers, magazines, websites, or even on a display card in their office window. You do not want home-opens and you definitely do not want a For Sale sign in your front garden. Explain that you want only qualified buyers to view your property, ones who are genuinely interested in what you have to offer.

Ask the sales agent to provide you with a CMA (Comparative Market Analysis). This shows what properties similar to yours are being advertised for and what prices have been achieved in your area. You can then compare the CMA report with your valuer's report to assure yourself that the agent is not over- or underpricing your property.

Once you are happy that your chosen agent understands what you want, you can then offer the agent an exclusive listing on your property and agree to pay them the full commission on settlement - as they will have to work smarter to sell your property.

The agent should be assured that qualified buyers can view your property at short notice and that your property will be in a presentable condition. Ask advice from your sales agent on how best to present your property.

Allow the sales agent to take photographs of your property to show to qualified buyers. Make sure your property is well presented before any photos are taken.

Stipulate that your street address is not to be disclosed and that buyers must always be accompanied by the agent when viewing your property. Once your property is sold, you should offer to write the agent a testimonial praising their work.

Most agents will freak out when you tell them your terms and will respond with all sorts of facts (and fictions), because in order to sell your property they will have to work in a different manner - one that will make your property more exclusive and will not expose it to unnecessary attention or compromise its value, even if it does take a while to sell.


Author: Gary Burke, Cairns and Co

Below is a copy of a letter sent out by the Queensland Government, Treasury, outlining its new policy on Stamp Duty for first time home buyers: <

Below is a copy of a letter sent out by the Queensland Government, Treasury, outlining its new policy on Stamp Duty for first time home buyers:

Hon. Andrew Fraser MP

Member for Mount Coot-tha


Treasurer
3 June 2008

Stamp Duty Wiped Out For First Home Buyers in Fraser Budget

Stamp Duty will be slashed and Mortgage Duty scrapped to give more Queenslanders greater access to the housing market - and provide savings of almost $10,000 for anyone purchasing their first house for $500,000 or less.

The significant raft of tax reform - announced in today's State Budget by Treasurer Andrew Fraser - will give a generation of Queenslanders the opportunity to break into the housing market at a time when the great Australian dream appears to be moving beyond their reach.

"We've traversed a decade of unprecedented prosperity in Queensland but it has not been enjoyed by everybody," Mr Fraser said.

"Scores of younger Queenslanders have been locked out of the property market simply because it has risen beyond their reach.

"Housing affordability cannot be solved by any one act of government but this government can assist and it will.

"Through these sweeping changes, any Queenslander seeking to break into housing ownership by purchasing a home under $500,000 will be given a break by not having to pay one red cent in stamp duty on the purchase.

"They will not pay one red cent in duty on their mortgage - because we are abolishing it in full on day one of the financial year.

"Whether you are looking to take out a mortgage and buy a house in the growth corridors of Ipswich or Logan, the expanding suburbs of the Gold Coast, in outer Cairns, in suburban Brisbane or in the boom story that is Mackay, you will now be able to do so under the lowest tax regime in the country."

The State Budget housing affordability initiatives make specific reform to:

First Home Owner Stamp Duty Abolished under $500 000

This budget increases the first home buyer exemption from $320,000 to $350,000 from 1 July 2008 and - from 1 September 2008 - to $500,000.

These changes will provide savings of up to $9,500 to home buyers purchasing their first home valued up to $500,000 - stamp duty for all first homes under $500 000 will be nil from 1 September 2008

Home Owner Concession

Stamp duty on purchase of $500,000 and mortgage of 80 per cent Queensland currently provides a principal place of residence concession by applying a one per cent rate to the first $320,000 of the value of the home. This Budget increases the concession to the first $350,000 of the value of the home from 1 July 2008.

The increased concession will ensure that less duty is payable in Queensland than in any other state on the purchase of a home valued at up to approximately $1.5 million

Mortgage Duty

The full abolition of Mortgage Duty will be brought forward six months to 1 July 2008. This measure will further assist housing affordability by substantially reducing the upfront costs associated with taking out a mortgage. Savings are in the order of $300 on a $500,000 house

Other Transfer Duty Charges

For houses valued at more than $1 million the First Home Owners Grant will be abolished and in addition duty rates will be reformed. Ultimately, when each of these duty changes are combined, it will mean a decrease in duty on all homes valued between $320,000 and $1 million and an increase above that level.

Land Tax

Queensland enjoys the highest threshold in the country and, at 1.5 per cent, the top marginal rate is also lowest in the nation. The amount of tax at the Land Tax threshold will be reduced from $1,200 to $500 for residents and from $2,250 to $1,450 for companies, to ensure the majority of land tax payers - residents as well as companies, trusts and absentees - will benefit from the changes.

Improving Housing Supply

This budget assists with housing affordability through the planned release of $125 million this year from the Queensland Future Growth Fund for social housing as well as $9.5 million for the Urban Land Development Authority

"These reforms aim to assist those locked out of the housing market.

"If you want to purchase your first home for under half a million dollars these are the facts: You won't pay a dollar in stamp duty and you won't pay a dollar in mortgage duty.

"And that is core to our budget and core to our beliefs as a government."

Media Contact: Chris Taylor 0419 710 874 or Renee Mickelburgh 0458 357 539

* Mortgage Duty, based on purchase of $500,000 and mortgage of 80 per cent

If you are looking to buy an apartment or townhouse, you will most likely be buying into a Community Title Scheme. This means that while you own your

If you are looking to buy an apartment or townhouse, you will most likely be buying into a Community Title Scheme. This means that while you own your apartment or townhouse, you will also have a shared responsibility for any common areas within the bounds of your building's complex.

Common Areas may include shared driveways, parking areas, rubbish collection areas, BBQ areas, a swimming pool, a tennis court, a gymnasium, etc.

It is the responsibility of the body corporate to maintain common areas.

A body corporate must comply with the Body Corporate Act 1997 (The BCCM Act) and its regulations. A body corporate makes decisions with shared responsibility on matters such as maintenance and management of common property - including equipment and services, determining financial contributions (levies), public risk, insurance and compulsory building insurance, and establishing and enforcing by-laws.

When you purchase a property that is governed by a body corporate you will automatically become a member. From the owners, the body corporate must elect a committee during each annual general meeting. The committee should consist of a chairperson, a secretary and a treasurer (the executive members) and any ordinary members. Depending on the size of the scheme, committees will vary in size from at least three to no more than seven people. The committee must act responsibly and in the interest of all owners.

If not enough members are interested in forming a committee, or at least one of the executive positions is not filled, regulations allow a body corporate to employ a body corporate manager to carry out the functions of the committee.

We recommend that you become involved and participate in your body corporate. It's your money, your investment. Help to protect it.

By law, a body corporate must hold an annual general meeting where owners consider the financial position and direction of the body corporate. There are two budgets they must approve each year. These are the Administration Fund and the Sinking Fund.

The Administration Fund covers the day-to-day expenses, such as general maintenance of common property, insurance and other recurrent expenditure.

The Sinking Fund is based on future major maintenance, such as painting, pool refurbishment and purchases or replacement of major assets.

Extraordinary meetings can be held at anytime to discuss matters of urgency such as repairs, disputes or changes to by-laws.

How much money you need to contribute each year to maintain the upkeep of the administration and sinking funds will depend on your lot entitlements. Lot entitlements are determined by the developer of the property. There are two lot entitlements schedules, the Contribution Schedule and the Interest Schedule.

The Contribution Schedule is used for calculating common property maintenance. The Interest Schedule is used to calculate insurance payments.

Your lot entitlements will be worked out depending on what scheme your property comes under: the Building Format Plan or the Standard Format Plan.

A Building Format Plan (previously known as a Building Units Plan (BUP)) is usually a subdivision of a building. The boundaries are defined on the plan by references to the structural elements of the building, e.g., walls, floors and ceilings.

A Standard Format Plan (previously known as a Group Titles Plan, (GTP)) is a subdivision of land with references to marks on the ground or a structural element (for example, survey pegs in the ground or the corner of a building). As an example, a Standard Format Plan may include a townhouse complex, where the individual lots would comprise a building and land (front and/or back courtyards).

More information on body corporate matters can be found at www.justice.qld.gov.au/bccm


Author: Gary Burke, Cairns and Co

I once read: "A man standing in a field with his mouth open, eager for a roasted duck to fly in, has a long wait". I understood this to mean that you

I once read: "A man standing in a field with his mouth open, eager for a roasted duck to fly in, has a long wait". I understood this to mean that you should not stand around waiting for things to happen. If you really want something, then go out and get it!

This is similar to the current state of the property market. Many opportunities are being ignored because people are standing around waiting for conditions to change.

We are always told the best strategy is to buy low and sell high. Most economists today are saying we are at a low and that we should be moving up anytime now. Let's look at some of the reasons why they are saying this.

As we know, the property market is driven by supply and demand with the key driver of demand being population growth. Australia is currently undergoing a population boom. The population increased by more than 300,000 last year.

This is one of the key factors that currently separate our market from the American and European markets. Our population is increasing, while their populations are decreasing.

During 2007, almost 180,000 new migrants arrived in Australia. Migration will be further boosted with the Government's plan to increase the skilled migrant intake by 30% for 2008/09.

The birthrate within Australia is also increasing with over 140,000 more births than deaths last year. CommSec's economist, Savanth Sebastian, recently said: "If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year". Couple this with the present trend of people wishing to live in smaller groups, or on their own, and we have a lot of demand for housing.

So what about supply? The development of new housing is forecast to be around 150,000 to 160,000 dwellings per annum over the next few years. But because of the demand from our growing population, demand for new housing is expected to increase to over 200,000 homes per annum by 2010.

Most buyers are still being fairly cautious. However, strong housing demand, lower interest rates, lower petrol prices and the Aussie dollar now returning to more normal levels are all factors likely to fuel a significant recovery in the property market.

Most industry experts are in agreement that there will be an upturn in the housing market in the first quarter of next year, resulting in property prices being pushed up in mid-2009.

So, if you are currently considering buying property, don't stand in a field with your mouth open, as your roast duck might fly straight past you!


Author: Gary Burke, Cairns and Co

The Federal Government has said that it will now raise the first-time home buyers grant from $7,500 to $14,000 for purchases of existing properties an

The Federal Government has said that it will now raise the first-time home buyers grant from $7,500 to $14,000 for purchases of existing properties and will now give $21,000 for purchases of new properties. This is on contracts entered into by 30 June 2009.

Add to this, the fact that the Queensland Government will not charge stamp duty or mortgage duty to first-time home buyers on property valued up to $500,000, buying your first home in Queensland now makes even more sense.

Living in Cairns is great! We have wonderful weather for enjoying an outdoor lifestyle, good schools, good infrastructure and plenty of work. Cairns is the ideal place to buy your first home and start a family.

Contact us now, to see how we can help you choose your perfect property at the best possible price.

There is plenty of property on the market, but not an overflow. In fact, the total number of properties currently on the market is down from twelve mo

There is plenty of property on the market, but not an overflow. In fact, the total number of properties currently on the market is down from twelve months ago. The main difference between then and now is that twelve months ago the market was in favour of the seller, whereas now it is in favour of the buyer. This is due to the downturn in the economy, the shortage of funding and the fact property is taking longer to sell.

At present, many buyers seem to think this means that they can go out and snap up property at bargain-basement prices. And they are right; many buyers have put in very low offers that have been accepted. But you have to ask yourself, why were they accepted?

Currently, there are not many property owners in Cairns who are in dire-straights and need to sell at any price. But there are many properties on the market that the owners would love to sell, and a buyer's market is a great place to offload a property that is not performing or is in need of a cash injection. These properties are not normally flagged as Buyer Beware, but this should always be on your mind in a buyer's market.

A buyer's market is fraught with danger for the unwary buyer. The number one question we, as buyer's agents, want to know is: if the owner does not need to sell, why would they put their property on the market now, in a buyer's market, when it could take a while to sell and could lose value?

Property for sale during a buyer's market always warrants further investigation, so that you do not end up buying something you will regret further down the track.

This has recently been proven by the increase in buyers trying to wriggle out of contracts they originally thought were too good to be true.

If you do not have access to all the facts on a property you wish to buy, use a buyer's agent. They will save you money in the long run. They are trained professionals. They have local knowledge and access to information that you may not be able to source. And best of all, they are on your side!

Author: Gary Burke, Cairns and Co, 22/10/08

The major industries in Cairns are tourism, fishing, aviation and farming and currently there is plenty of work on offer, seasonal and long-term.

On the news, a newsreader reported that millions had been wiped from the value of stocks. When this happens, where does all the money go?

W

On the news, a newsreader reported that millions had been wiped from the value of stocks. When this happens, where does all the money go?

When prices fall on the stock market, it does not mean that money simply disappears. For a stock to move in price, there has to be a buyer for every seller. This means that a person selling shares is receiving a payout for their shares when they sell to another person who wishes to buy those shares.

Those who bought high and had to sell low have lost real money, but if these people did not have to sell and were still holding onto their shares, they would only have made a paper loss. If they can wait it out, they may regain the paper loss and be in a position to sell for a real profit.

What needs to be appreciated is that the value of a stock on the stock market is only a paper value, worked out from how many shares have been issued and what their current value is based upon its last sale price.

So, on the news at night, when a reporter says millions have been wiped from the value of stocks, it is only the paper value that has been wiped. The real money is still there.


Author: Gary Burke, Cairns and Co, 26 October 2008

Before entering into real estate, Gary was a private stock trader. He came fourth in an Australia-wide trading competition, with a net profit of 196.6%.