WELCOME ! January 2007


Well, it’s 2007 and what a year it will be!

I’m excited like never before and that takes some saying for this veteran who will notch up 21years in real estate in the Robina locale this year. During that time I’ve personally sold around $700 million worth of property and going way back to 1986, I had a blind faith in the dream and master plan of Dr Robin Loh and his team at Robina Land Corporation. That dream has been exceeded BIG TIME and the reason why I’m excited is that what’s coming down the pipeline is truly astounding.

I know this because I have a very good relationship with the crew at Robina Land Corporation having been in a number of business ventures with them. In fact Robina Land Corporation asked me to write a few words on their newly launched CBD – Robina initiative. Following are my comments:


“Dear Cindy,

I am honoured at being invited to provide a testimonial for CBD – Robina.

“I believe CBD status is a logical and fitting title and is well deserved. I heartily congratulate Robina Land Corporation on their execution of a brilliant master plan.

Having personally sold $700 million in property in the Robina region since 1986, and knowing the continuing future growth of Robina, I have recently purchased Robina Realty, a company established by Robina Land Corporation in 1981. With great confidence in the future direction of Robina, I have expanded Robina Realty to include a Commercial Division. I believe CBD – Robina is not only a reality but one we take seriously in our business plans and growth.

I trusted and believed in the vision of Dr Loh and the Robina Land Corporation team and not only has the dream come true it has exceeded all expectations…and the continuing growth for immediate future is even more spectacular.

The residential market has always been strong and when combined with the massive commercial growth it now makes Robina the most complete region on the Gold Coast by far.

Regards,

Alanah Day”


There is some $73 million in projects ready to be developed and under construction including Robina Land Corporations:
Madison on Riverwalk – 18 boutique apartments all with uncompromising attention to detail;
The Top – Trendy spacious apartments above Robina’s exciting new Easy T Centre;
50 Riverwalk – 50 two bedroom + ensuite apartments over three east facing waterfront buildings;
34 Riverwalk – Exclusive penthouse style apartments; &
Promenade Point – 18 designer 2 bedroom lakefront apartments.

Also, just new to the market, the latest offering from Gemvale Enterprises:
Acacia Centre – 2 & 3 bedroom apartments + huge penthouses. AND 25 strata titled commercial premises.


Right now there is a concerted push on to convert Robina into a CBD precinct. It will happen and that’s just another reason why Robina Realty now has a full commercial division capable of handling the predicted surge in non-residential commercial activity.

As you will soon read in our lead article for this month, the area is buzzing and that’s why I’m excited.

On behalf of all the team at Robina Realty have a brilliant 2007 and if we can assist you in any way with additions or reassessments to your property investment portfolio, please contact us.

Regards,

Alanah Day
Managing Director

The State Of Our State & A Peep At What’s In Store For 2007

As a property investor you will be vitally interested in the November 2006 issue of Midwood's Queensland Property Investment Report. We are keen students of this report because it is always thoroughly researched and the publishers have an intelligent and balanced view of the immediate future. Here now are some of their “nuggets of factual wisdom” about Queensland in general and the Gold Coast in particular:

Queensland is the fastest-growing state with approximately 4 million citizens or 20% of Australia's population. In recent years however, Queensland has accounted for 33% of Australia's population growth. Does this mean more property development and infrastructure? Of course! But the immensity of this development might surprise you, so keep reading.
Queensland is expected to continue to grow much faster than the rest of Australia into the foreseeable future. It is expected to overtake Victoria to become the second-largest state between 2030 and 2040, according to the Australian Bureau of Statistics (ABS 3222.0)
Queensland's strong growth is primarily due to migration, both from interstate and overseas. Net interstate migration to Queensland was 31,500 in the year to June 2005, equivalent to 700 additional people per week or 100 people per day. Surely this fact alone would suggest the need for between 40 and 60 new residential dwellings each day!
The above fact is more than borne out by the September 2006 half yearly dwelling approvals which rose by an estimated 14% to over 20,000.
Statistics produced by the State governments Planning and Information Forecasting Unit show that the southeast Queensland region (Brisbane, Gold Coast, Sunshine Coast and Toowoomba) experienced a higher volume of growth than either New South Wales or Victoria in the year to June 2004.
Recently, the State government made the first amendment to its SEQ Regional Plan. The annual population growth forecasts for SE Queensland have been increased by approximately 25% over version 1. The great majority of this additional growth is forecast to occur in western and south-western Brisbane.

Drilling Down On What's Happening On The Gold Coast

The Gold Coast is the fastest-growing major region in Australia and the largest city outside the five mainland state capitals.
According to ABS figures Gold Coast dwelling approvals rose an estimated 33% during the September quarter to almost 4000, though it should be borne in mind that these are approval figures and not actual commencements. Plus, there may be aberrations caused by some large developments receiving approval in this quarter. Nevertheless, September’s 3,968 approvals are a long way above the seven-year average capacity of 3,181.
A recent article in the Gold Coast Bulletin assessed the Gold Coast’s needs at 97 new homes each week to cater for the newcomers to the area. This equates to a high-rise every two weeks or a housing estate every two months.

The 2007 & Beyond Predictions

The Queensland population will continue to grow at a projected growth rate of 2% per annum.
The Gold Coast population will continue to grow at a projected growth rate of 3.3% per annum. It will reach 600,000 before 2010.

Surely, the conclusion that must be drawn from this research is that Queensland is vibrant with massive growth opportunities in front of it.

What Does All This Mean For Your Investment Property?

Again, with the assistance of the careful research as conducted by Midwood’s we will look at this issue from two aspects:

The incremental improvement in the capital value of your property; &
The improvement in rentals capable of being achieved on your property

Improvement In The Value Of Your Investment

Naturally, you will understand that the following figures are statistical trends of a given market and individual properties may be higher or lower than these figures depending upon their own individual set of circumstances. Plus, do understand that the past is the past and the future may present an entirely different set of circumstances. If, for whatever reason, you are considering selling, we urge you to contact our office so as to get a professional opinion as to the likely worth of your property. Simply call us on 1300 ROBINA.

Overall, Gold Coast house prices were up 4% reaching $400,000 with 7% growth in the price of units to reach $307,000
Specifically, here is how a number of key suburbs have performed

Houses

Suburb Median Price
Year To
June 2006
% Change
Over 5 Years
% Change Over
1 Year
Robina
$472,000
100%
7%
Mudgeeraba
$375,000
103%
7%
Burleigh Waters
$450,000
117%
3%
Burleigh Heads
$509,000
121%
2%
Mermaid Waters
$572,000 145%
17%

Units

Suburb Median Price
Year To
June 2006
% Change
Over 5 Years
% Change Over
1 Year
Robina
$350,000
75%
9%
Mudgeeraba
$250,000
62%
4%
Burleigh Waters
$280,000
120% 6%
Burleigh Heads
$345,000
88%
0%
Mermaid Waters
$265,000
121%
12%

We consider the one year performance to be the guiding criterion and properties within our “footprint and focus” are performing better that the Gold Coast average and better than the great majority of suburbs. Incidentally, a number of suburbs (Benowa -11% and Coolangatta –12%) actually went backwards.

Of some concern to the city’s planners, but which represents pleasing news for property investors, is the housing affordability issue. It is at its lowest level since 1990 with grave doubts expressed as to how the average earning first home buyer can afford to enter the market. Midwood’s believes this problem might be resolved by an increase in the first home owners grant and changes to mortgage lending which might see much longer mortgage terms (40+ years) and shared equity loans where the financier takes a share of the capital growth.


Improvement In Rentals Capable Of Being Achieved On Your Property

Before we look at the analysis in this area it should be stated that as a company we're very conscious of our obligation to protect your investment and this means making sure we are achieving rental returns commensurate with the marketplace.

Moreover, our experienced Property Managers are acutely aware of this and we do, as a matter of course, regularly study the rents that are being achieved in the marketplace. That said, our Managers quite properly blend a number of other very important issues into the equation, such as the quality of the tenant, the way they look after the property and the possible downtime in finding a new tenant to name but a few.

The achievement of high rents is not the only issue and you only need ask an owner of a high-rise unit that has been trashed during “schoolies week” to seek the correct answer here.

So, with the understanding that our Property Managers have your best interests at heart and are always available to discuss all matters with you, let's continue:

According to information drawn from the Residential Tenancies Authority of Queensland, Gold Coast flats and houses continue to show rental growth of 7% to 8% on the previous year. The following figures will give you some indication:


Sep Qtr 04 Sep Qtr 05
Sep Qtr 06 % change 05 to 06
1 Bed Flats
$205
$225
$240
+7%
2 Bed Flats
$245
$260
$280
+8%
3 Bed Houses
$300
$310
$335
+8%

These rates are well ahead of the Queensland average and the likely trend for rents in 2007 is up and particularly so whilst the housing affordability crisis continues.

We are indebted to Midwood’s for this information and strongly suggest that serious property investors should consider subscribing to this report which covers the entire state of Queensland. It’s not cheap…but then again, quality information which give you an edge over the rest of the herd never is. Phone 5531 6956 for details.

The Easy To Live With Diet For 2007

Given that it is a new-year and that “lose weight” resolution might still be fresh in your mind we thought we would offer you the Robina Realty diet - a diet that doesn’t make you skimp at all and yet you are guaranteed to lose weight. It will literally fall off you!

Here’s the good news: You are entitled to lashings of any of the ingredients…at any time, day or night.

The servings can be generous.

Not only that, you can take this diet with you anywhere. Fancy restaurants can whip up these culinary delights in no time at all and the even better news is they will charge you much less than the price of the standard meals.

Interested?

Well, let’s get down to the ingredients.

Take a decent quantity of air (as much as you like) and then drizzle it with nothing. Let it marinate for about two hours.

For those who like sipping on the job, you can also have a decent swig of nothing.

Hey, how good is that!

Once the air and the nothing have marinated properly it’s time to garnish.

Throw in a handful of fog or mist – be liberal.

If in season, add some rainbow for decoration and colour.

Finally, serve on a Cos lettuce leaf with a glass of iced water.

Hmmmm!

Do this for two weeks and you’ll lose five kilos…guaranteed.


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Contact Us

If we can assist you further with your property requirements or if you'd like more information on any of the articles covered in this newsletter, call us on 1300 ROBINA