“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” Sam Walton
The past month has seen some movement in the local property market with a number of properties going ‘under contract’; including some ‘higher end’ homes and units. There seems to be a misconception from some observers that the property market is ‘dead’ (or at least on life support anyway J) however, we have seen sales ranging from a one bedroom unit for less than $200,000 all the way up to a $1 million + home on prestigious Cooloola Drive. Anyone that thought that everybody was just holding onto their money until the market recovers – well – they might not have it quite right.
The current property market could best be described as a great time to buy. With a lot of stock on the market and plenty of vendors keen to make a deal – we are actively encouraging prospective buyers to be bold and ‘make an offer’ because you might just be surprised with the results.
We have definitely observed an increase in buyer enquiry and visitor numbers to town over the past three months. Holiday bookings are looking pretty healthy for the summer holidays and we have had a steady stream of guests/visitors to town since the September school holidays. The weather has certainly assisted this (with close to 5 weeks of no rain throughout September/October). In addition, we are firm believers that the “Discover Rainbow Beach Campaign” is really working.
The Rainbow Beach Commerce and Tourism Association have been working with a small group of local business in conjunction with Gympie Cooloola Tourism to promote Rainbow Beach through television advertising. The group is now in its second year of advertising and this year alone, has generated financial resources of $60,000 to run the 2012 TV campaign. Both Southern Cross 10 and Channel 7 have been used to date and it has been a great learning curve in understanding TV advertising and where the best values are in TV programming.
The ads run 'Top and Tail' with a generic ad run first during an ad break followed by one of the ads from the contributing business. You may have seen the ads recently on Channel 10 – most often during prime time TV shows such as ‘The Project’ and ‘Modern Family’. Currently the businesses involved are Cooloola Coast Realty (promoting Holiday Accommodation), Rainbow Sea Resort, Breakfree Rainbow Shores Resort, Baitrunner Fishing Charters, the Bluewater Lodges development (Rainbow Shores), and Fraser Island Beach Houses. Other contributors (2011) have been The Getaway Resort, The Plantation Apartments and the Rainbow Beach Hotel. The group, which is being managed through Rainbow Beach Commerce and Tourism and Gympie Cooloola Tourism are always looking for other business to be involved. The campaign itself is intended to run over a number of years so we can build the Rainbow Beach 'brand' and grow on its successes.
The Discover Rainbow Beach campaign is quite unique in that it involves a number of separate businesses cooperating to pool their advertising dollars in order to get more ‘bang for buck’. Many other tourist towns and regions have tried to run similar campaigns; however it has been a bit like “herding cats” in terms of getting a group of individual business owners to agree on a concept and work together without getting upset about whether or not someone might be benefitting more than someone else.
The main focus of the initiative is to bring more people to Rainbow Beach and promote the natural attractions of our beautiful location and surrounding areas. More visitors to town ultimately buy more clothing, eat more food, take more tours and hopefully choose to stay in one of our various accommodation options. In a small town the same money changes hands multiple times and therefore every business in town benefits from increased tourist numbers. It is really about making sure that all businesses grow and prosper and do more than just 'survive'. This growth will eventually translate into providing the community (and especially our young people) with opportunity and increased infrastructure such as health and education resources.
Finally, this month – Did you know that Rainbow Beach has made it onto a list of ‘101 Best Beaches’ in Australia? There is a new book and a website (www.101bestbeaches.com) that lists our very own Rainbow Beach as a great beach because of the “coloured sands, big dunes, calm waters in the south and surf in the north.” There were only 21 beaches from Queensland named in the book and Caloundra, Mooloolaba, Maroochydore and Noosa all missed out on a place on the list. (Although
Tea Tree Beach, near Noosa, made it on the list). The list itself (along with the book and website) was put together by authors Andy Short and Brad Farmer. Together, they have visited every one of Australia’s 11,761 mainland beaches, arguably making them uniquely qualified to tell us which are the ones we have to see before we die. We are stoked that Rainbow Beach made it on the list AND Fraser Island’s stunning Seventy Five Mile Beach also got a place on the list. We knew it all along but now everyone will know that we’ve got two amazing beaches right on our doorstep!
Finally, we wish everyone a very Merry Christmas and a Happy New Year! Stay safe
Sunday, December 2, 2012
Wednesday, October 31, 2012
Rainbow Realty Deal - November 2012
The Realty Deal
"My problem lies in reconciling my gross habits with my net income."
Errol Flynn
Last month saw a minor resurgence in the local property market with a noticeable increase in general sales enquiries and two properties going ‘under contract’ including one which is a ‘mortgagee in possession’ sale.
Many prospective buyers and investors have been sitting on the sidelines over the past 3-4 years, trying to predict the best time to buy. Often, it is difficult to pick the ‘bottom of the market’ or the exact right time to purchase and the best advice is probably to research the area you are looking to buy in and have a medium to long term strategy of holding the asset.
The current property market in Rainbow Beach has many properties selling for prices similar to those that they would’ve achieved (or in fact, did achieve in some cases) back in 2003/2004. There are in excess of 30 ‘mortgagee in possession’ properties in town at the moment and this situation is likely to maintain downward pressure on values for the time being.
In saying that, when there are clear opportunities to purchase property at well below replacement cost; it makes perfect sense that the long term capital growth for a property will be positive as demand outweighs supply going forward. There is only a limited amount of developable land in Rainbow Beach and this limits the supply of any new stock. Generally speaking, there are many people who are making more money now than they were five years ago. There might be some sectors of the market that are struggling such as retail and manufacturing but the mining and financial/insurance industries appear to be doing just fine and many workers/business owners involved in these industries are buying assets now at reduced prices because they recognise that there are some absolute bargains to be had.
The Reserve Bank (RBA) decided at the beginning of October to cut official interest rates to their lowest in three years in response to a worsening outlook for the global economy and signs of a weakening local labour market. The RBA cut the cash rate by 0.25 percentage points to 3.25 per cent in a move that was welcomed by borrowers. A 25 basis point cut, (if passed along in full by lenders), would reduce the average monthly repayment on a $300,000, 25-year mortgage by about $48.
The RBA’s decision to reduce rates again in October, marked the third cut so far this year and brings the total official reductions to 150 basis points since November 2011, when the RBA first began its current rate cutting cycle. At 3.25 per cent, official rates are the lowest since October 2009, when Australia was first emerging from the initial effects of the global financial crisis. Rates had fallen to the 49-year low of 3 per cent in 2009 when the central bank was grappling with the first impacts of the GFC. (Source: Sydney Morning Herald, 2 Oct 12)
We have compiled some statistics of house sales data (houses only) over the past 15 years which we thought you might find interesting:
"My problem lies in reconciling my gross habits with my net income."
Errol Flynn
Last month saw a minor resurgence in the local property market with a noticeable increase in general sales enquiries and two properties going ‘under contract’ including one which is a ‘mortgagee in possession’ sale.
Many prospective buyers and investors have been sitting on the sidelines over the past 3-4 years, trying to predict the best time to buy. Often, it is difficult to pick the ‘bottom of the market’ or the exact right time to purchase and the best advice is probably to research the area you are looking to buy in and have a medium to long term strategy of holding the asset.
The current property market in Rainbow Beach has many properties selling for prices similar to those that they would’ve achieved (or in fact, did achieve in some cases) back in 2003/2004. There are in excess of 30 ‘mortgagee in possession’ properties in town at the moment and this situation is likely to maintain downward pressure on values for the time being.
In saying that, when there are clear opportunities to purchase property at well below replacement cost; it makes perfect sense that the long term capital growth for a property will be positive as demand outweighs supply going forward. There is only a limited amount of developable land in Rainbow Beach and this limits the supply of any new stock. Generally speaking, there are many people who are making more money now than they were five years ago. There might be some sectors of the market that are struggling such as retail and manufacturing but the mining and financial/insurance industries appear to be doing just fine and many workers/business owners involved in these industries are buying assets now at reduced prices because they recognise that there are some absolute bargains to be had.
The Reserve Bank (RBA) decided at the beginning of October to cut official interest rates to their lowest in three years in response to a worsening outlook for the global economy and signs of a weakening local labour market. The RBA cut the cash rate by 0.25 percentage points to 3.25 per cent in a move that was welcomed by borrowers. A 25 basis point cut, (if passed along in full by lenders), would reduce the average monthly repayment on a $300,000, 25-year mortgage by about $48.
The RBA’s decision to reduce rates again in October, marked the third cut so far this year and brings the total official reductions to 150 basis points since November 2011, when the RBA first began its current rate cutting cycle. At 3.25 per cent, official rates are the lowest since October 2009, when Australia was first emerging from the initial effects of the global financial crisis. Rates had fallen to the 49-year low of 3 per cent in 2009 when the central bank was grappling with the first impacts of the GFC. (Source: Sydney Morning Herald, 2 Oct 12)
We have compiled some statistics of house sales data (houses only) over the past 15 years which we thought you might find interesting:
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Sunday, September 2, 2012
Rainbow Realty Deal September 2012
“There are two great moments in a man's life. One, when he buys his first yacht. Second, when he sells the thing!”
Kerry Packer
This month we would like to present “The cold, hard facts of Rainbow Beach residential property sales”. Over the past two years (since 1 July 2010); there have been 31 residential property sales recorded for Rainbow Beach.
* This excludes private sales as these are often the result of a ‘related parties’ exchange in order to change the name on the Title from an individual to a Company or a husband to a wife etc.
78% of these (24 sales) were achieved by Cooloola Coast Realty (average sale price of $435,000)
16% (5 sales) were achieved by other Rainbow Beach based Realties, (average sale price of $386,500) and
6% (2 sales) were achieved by out of area agents (average sale price of $482,500).
These statistics show that even in a tough market, there has still been an average of 1.3 sales per month and that if you are actually looking to sell your property (as opposed to just list it for sale); the best option is Cooloola Coast Realty. These statistics also indicate that it is extremely unlikely for an out of area agent to achieve a sale in Rainbow Beach. This is partly due to the geographical distance separating the town from the nearest metropolitan centre. Ie. An agent in Gympie, Noosa or Maryborough is unlikely to be able to meet the needs of a prospective buyer who is only in town for a limited time and wants to arrange an inspection ‘on the spot’ or coordinate multiple inspections.
Please feel free to contact us anytime to discuss the market and the current value of your property. We will provide you with a frank and honest assessment of the current market; backed up with facts relating to recent comparable sales which will allow you to make an informed decision regarding the current value of your home, whether or not to list it for sale and at what price you can expect to sell.
So you have decided to list your property for sale with Cooloola Coast Realty but what if you want your property managed as a holiday let or permanent rental? Well, we sometimes find it frustrating that certain people view larger businesses as impersonal or perhaps not offering as high of a standard of service as smaller competitors. It seems somewhat illogical to us that someone would perceive a larger agency as not being capable of providing a superior service given that their ratio of staff to properties’ is lower than its competitor. ie. there are more resources allocated per property under management.
For example, at Cooloola Coat Realty; we have five full-time staff managing properties (sales, holiday, and permanent) whilst the alternative agency in town has only one full-time staff member who is responsible for all aspects of property management within the business. This situation offers a high risk solution with no contingency for attrition, annual leave, illness or absence of key staff whilst an agency with five full time staff provides continuity and assurance that your property is being managed professionally and competently throughout the year.
With specific regard to holiday rentals, another important aspect to consider when choosing a managing agency is how much exposure your property will receive to prospective guests. Cooloola Coast Realty has a massive e-database of over 7000 clients; many of which have holidayed in Rainbow Beach multiple times. We distribute an E-Newsletter to this database once a month, often with specials targeted at increasing holiday bookings – particularly during the traditionally quieter months of autumn and winter. We also upload our holiday properties to eight separate websites to ensure the property receives maximum exposure.
When choosing holiday accommodation, many of our guests indicate that they look for the largest range of options in order to make a decision on where they would like to stay. They often consult well-known holiday accommodation websites such as “stayz.com.au” as multiple properties are listed on the one site. Our flagship holiday accommodation website: www.accommodationrainbowbeach.com ranks extremely well on a ‘google’ search of “rainbow beach accommodation” and averages approximately 25 holidaymakers on it at any one time.
The best analogy we can think of is the concept of going to Bunnings Warehouse to buy a wheelbarrow as opposed to going down to the guy on the corner who sells everything from hay to hammers and only stocks one type of wheelbarrow. Most people are going to look in Bunnings because there is so much more choice and it’s all in one location.
At this point, it is safe to say that social media has revolutionised online marketing in every industry. Facebook, Twitter, YouTube, Google+ and other social media channels have become a large part of the marketing campaigns for many companies. The Real Estate industry is no different.
Cooloola Coast Realty is involved in the selling and leasing of property and in today’s difficult market – we need to embrace any form of exposure and marketing that can put buyers and sellers together.
We have our own Facebook page now that we regularly update with property market information, recent sales, great bargains and holiday accommodation specials. In addition, you can keep up to date with local information including weather/road/beach conditions, new businesses and shops in town as well as any new infrastructure developments. Just ‘google’ “facebook cooloola coast realty” and make sure you click: ‘Like’ to keep up to date with all the Rainbow Beach property market information.
Kerry Packer
This month we would like to present “The cold, hard facts of Rainbow Beach residential property sales”. Over the past two years (since 1 July 2010); there have been 31 residential property sales recorded for Rainbow Beach.
* This excludes private sales as these are often the result of a ‘related parties’ exchange in order to change the name on the Title from an individual to a Company or a husband to a wife etc.
78% of these (24 sales) were achieved by Cooloola Coast Realty (average sale price of $435,000)
16% (5 sales) were achieved by other Rainbow Beach based Realties, (average sale price of $386,500) and
6% (2 sales) were achieved by out of area agents (average sale price of $482,500).
These statistics show that even in a tough market, there has still been an average of 1.3 sales per month and that if you are actually looking to sell your property (as opposed to just list it for sale); the best option is Cooloola Coast Realty. These statistics also indicate that it is extremely unlikely for an out of area agent to achieve a sale in Rainbow Beach. This is partly due to the geographical distance separating the town from the nearest metropolitan centre. Ie. An agent in Gympie, Noosa or Maryborough is unlikely to be able to meet the needs of a prospective buyer who is only in town for a limited time and wants to arrange an inspection ‘on the spot’ or coordinate multiple inspections.
Please feel free to contact us anytime to discuss the market and the current value of your property. We will provide you with a frank and honest assessment of the current market; backed up with facts relating to recent comparable sales which will allow you to make an informed decision regarding the current value of your home, whether or not to list it for sale and at what price you can expect to sell.
So you have decided to list your property for sale with Cooloola Coast Realty but what if you want your property managed as a holiday let or permanent rental? Well, we sometimes find it frustrating that certain people view larger businesses as impersonal or perhaps not offering as high of a standard of service as smaller competitors. It seems somewhat illogical to us that someone would perceive a larger agency as not being capable of providing a superior service given that their ratio of staff to properties’ is lower than its competitor. ie. there are more resources allocated per property under management.
For example, at Cooloola Coat Realty; we have five full-time staff managing properties (sales, holiday, and permanent) whilst the alternative agency in town has only one full-time staff member who is responsible for all aspects of property management within the business. This situation offers a high risk solution with no contingency for attrition, annual leave, illness or absence of key staff whilst an agency with five full time staff provides continuity and assurance that your property is being managed professionally and competently throughout the year.
With specific regard to holiday rentals, another important aspect to consider when choosing a managing agency is how much exposure your property will receive to prospective guests. Cooloola Coast Realty has a massive e-database of over 7000 clients; many of which have holidayed in Rainbow Beach multiple times. We distribute an E-Newsletter to this database once a month, often with specials targeted at increasing holiday bookings – particularly during the traditionally quieter months of autumn and winter. We also upload our holiday properties to eight separate websites to ensure the property receives maximum exposure.
When choosing holiday accommodation, many of our guests indicate that they look for the largest range of options in order to make a decision on where they would like to stay. They often consult well-known holiday accommodation websites such as “stayz.com.au” as multiple properties are listed on the one site. Our flagship holiday accommodation website: www.accommodationrainbowbeach.com ranks extremely well on a ‘google’ search of “rainbow beach accommodation” and averages approximately 25 holidaymakers on it at any one time.
The best analogy we can think of is the concept of going to Bunnings Warehouse to buy a wheelbarrow as opposed to going down to the guy on the corner who sells everything from hay to hammers and only stocks one type of wheelbarrow. Most people are going to look in Bunnings because there is so much more choice and it’s all in one location.
At this point, it is safe to say that social media has revolutionised online marketing in every industry. Facebook, Twitter, YouTube, Google+ and other social media channels have become a large part of the marketing campaigns for many companies. The Real Estate industry is no different.
Cooloola Coast Realty is involved in the selling and leasing of property and in today’s difficult market – we need to embrace any form of exposure and marketing that can put buyers and sellers together.
We have our own Facebook page now that we regularly update with property market information, recent sales, great bargains and holiday accommodation specials. In addition, you can keep up to date with local information including weather/road/beach conditions, new businesses and shops in town as well as any new infrastructure developments. Just ‘google’ “facebook cooloola coast realty” and make sure you click: ‘Like’ to keep up to date with all the Rainbow Beach property market information.
Monday, July 30, 2012
Rainbow Realty Deal - August 2012
“As you walk down the fairway of life you must smell the roses, for you only get to play one round.” Ben Hogan
We are hoping it is the beginning of a trend - since writing our last article, we have had another three properties go ‘under contract’. We have seen a noticeable increase in buyer enquiry over the past 2-3 months and although there is still an underlying sense of caution from prospective purchasers, there are some investors who believe that now is the time to buy. The Mortgagee in Possession Auctions on Saturday the 7th of July for both Unit 2/7 Ocean View Parade and Unit 10/5 Ocean View Parade (Rainbow Sea Resort) were attended by over 50 people. There were two registered bidders at both of these Auctions and after a slow start and a Vendor bid, both properties were passed in. The Bank has subsequently listed the properties at $840,000 and $775,000 respectively.
These prices represent unbelievable value given that Unit 2/7 Ocean View Parade originally sold for $1.95 million (in 2008) and Unit 10 Rainbow Sea Resort sold for $1.1 million (in 2006). Unfortunately, the theory that a property is worth what it’s “replacement value” is (ie. what it would cost to purchase the land and rebuild the property) is fundamentally flawed. Property values all across the nation have been decreasing in value since 2008 – and in some areas up to 30% or 40% in the past three years alone. Meanwhile, the cost of labor and construction materials have increased dramatically due to increased global demand for timber, steel and concrete. It would be great if there were a direct correlation between replacement cost and market value as that theory alone would’ve held property prices firm over the past four years. There is generally much better value in purchasing an existing property with its entire infrastructure; (eg. swimming pools, fencing, driveways, etc) rather than buying a vacant block of land and building a house or unit/s from ground zero.
The two Auctions scheduled for Units 12 and 14 in the Ocean Palms Resort did not go ahead as there were no registered bidders. The Vendor for both of these units is keen to meet the market and is open to offers on his gorgeous properties with panoramic ocean views. The high end of the market is not necessarily dead in Rainbow Beach with an executive home on the ocean side of Cooloola Drive going ‘under contract’ in July. The property has been marketed by a Noosa-based agent for over two years and was listed by us at Cooloola Coast Realty in April this year. There are certainly some buyers in the market that are ‘cashed up’ and ready to make a purchase. There is also emerging evidence that Rainbow Beach is considered as reasonable value in comparison to areas further south on the Sunshine Coast; particularly in Noosa and Sunshine Beach etc. Generally speaking; a modern, four bedroom home with ocean views and a pool in Noosa would sell for in excess of $3 – 4 million. The same property in Rainbow Beach is unlikely to break the $2 million mark in the current market. Property is certainly looking like the lesser of two evils at the moment if you are looking for an investment.
An increasing number of Australian investors are regarding residential property as a relatively stable investment option in light of ongoing turbulence across local and global equity markets. Over the first six months of this year, the Australian share market has experienced some extreme fluctuations driven in part by instability in Europe, softening growth in China's economy and lingering negative consumer sentiment. Whilst the Australian property market as a whole has seen stagnant or depressed growth this year, values have not fluctuated to the extremes or lows that many shareholders of listed companies have endured, and as such, many investors may now be looking closely at buying opportunities in the property market. With high stock levels, generally depressed value growth and many buyers reluctant to commit to a purchase - market conditions continue to favour purchasers. Whilst many investors may be seeking out property opportunities in this market, it is important to remember that property should be viewed as a long term investment.
Also, it is worth noting that despite the softening of property values; buyers should not necessarily expect that a vendor is ‘desperate’ to sell. There are some absolute bargains to be had out there – but don’t assume that every seller is willing to accept a rock bottom price. Our best advice is to research the local property market yourself: speak to the experts (ie. local Real estate agents, Property managers, Solicitors and Valuers); take note of past sales (often available from websites such as realestate.com); make your own assessment of a property’s current market value; and make an offer accordingly. The last thing you want to do as a purchaser is to offend the vendor as this can make any negotiation more difficult and you may miss out on a great opportunity. Our last piece of advice for prospective buyers is to make sure you have spoken with your Lender/Bank regarding your investment intentions before you get into a price negotiation to ensure they are happy to give you the green light when it comes to a property purchase.
In general news, we were absolutely shocked last month when two of our holiday properties were broken into and TVs stolen. We became aware of the first incident whilst doing a spot check of one of the properties and noticed that the large, flat screen TV was missing. We checked with the property owners to make sure they hadn’t removed the TV for any reason (hoping they’d taken it to their permanent residence to watch Qld beat the blues in the State of Origin for example ); but – alas – they had no idea where the TV was. We reported the theft to our local police and they investigated. Less than a week later, another property was found minus a TV! By this stage, we were devastated. We have lived in Rainbow for over 4 years and have never been concerned about petty theft or crime of any kind. Anyway, the great news is – our local police have since found the culprit and the TVs have been returned to their rightful place. A massive thank you to our local ‘boys in blue’ for their excellent police work!! It is very much appreciated. And….. let that be a lesson to anyone who thinks it is ok to steal other people’s stuff! You will get caught. A small town like ours should pride itself on its low crime rate.
We are hoping it is the beginning of a trend - since writing our last article, we have had another three properties go ‘under contract’. We have seen a noticeable increase in buyer enquiry over the past 2-3 months and although there is still an underlying sense of caution from prospective purchasers, there are some investors who believe that now is the time to buy. The Mortgagee in Possession Auctions on Saturday the 7th of July for both Unit 2/7 Ocean View Parade and Unit 10/5 Ocean View Parade (Rainbow Sea Resort) were attended by over 50 people. There were two registered bidders at both of these Auctions and after a slow start and a Vendor bid, both properties were passed in. The Bank has subsequently listed the properties at $840,000 and $775,000 respectively.
These prices represent unbelievable value given that Unit 2/7 Ocean View Parade originally sold for $1.95 million (in 2008) and Unit 10 Rainbow Sea Resort sold for $1.1 million (in 2006). Unfortunately, the theory that a property is worth what it’s “replacement value” is (ie. what it would cost to purchase the land and rebuild the property) is fundamentally flawed. Property values all across the nation have been decreasing in value since 2008 – and in some areas up to 30% or 40% in the past three years alone. Meanwhile, the cost of labor and construction materials have increased dramatically due to increased global demand for timber, steel and concrete. It would be great if there were a direct correlation between replacement cost and market value as that theory alone would’ve held property prices firm over the past four years. There is generally much better value in purchasing an existing property with its entire infrastructure; (eg. swimming pools, fencing, driveways, etc) rather than buying a vacant block of land and building a house or unit/s from ground zero.
The two Auctions scheduled for Units 12 and 14 in the Ocean Palms Resort did not go ahead as there were no registered bidders. The Vendor for both of these units is keen to meet the market and is open to offers on his gorgeous properties with panoramic ocean views. The high end of the market is not necessarily dead in Rainbow Beach with an executive home on the ocean side of Cooloola Drive going ‘under contract’ in July. The property has been marketed by a Noosa-based agent for over two years and was listed by us at Cooloola Coast Realty in April this year. There are certainly some buyers in the market that are ‘cashed up’ and ready to make a purchase. There is also emerging evidence that Rainbow Beach is considered as reasonable value in comparison to areas further south on the Sunshine Coast; particularly in Noosa and Sunshine Beach etc. Generally speaking; a modern, four bedroom home with ocean views and a pool in Noosa would sell for in excess of $3 – 4 million. The same property in Rainbow Beach is unlikely to break the $2 million mark in the current market. Property is certainly looking like the lesser of two evils at the moment if you are looking for an investment.
An increasing number of Australian investors are regarding residential property as a relatively stable investment option in light of ongoing turbulence across local and global equity markets. Over the first six months of this year, the Australian share market has experienced some extreme fluctuations driven in part by instability in Europe, softening growth in China's economy and lingering negative consumer sentiment. Whilst the Australian property market as a whole has seen stagnant or depressed growth this year, values have not fluctuated to the extremes or lows that many shareholders of listed companies have endured, and as such, many investors may now be looking closely at buying opportunities in the property market. With high stock levels, generally depressed value growth and many buyers reluctant to commit to a purchase - market conditions continue to favour purchasers. Whilst many investors may be seeking out property opportunities in this market, it is important to remember that property should be viewed as a long term investment.
Also, it is worth noting that despite the softening of property values; buyers should not necessarily expect that a vendor is ‘desperate’ to sell. There are some absolute bargains to be had out there – but don’t assume that every seller is willing to accept a rock bottom price. Our best advice is to research the local property market yourself: speak to the experts (ie. local Real estate agents, Property managers, Solicitors and Valuers); take note of past sales (often available from websites such as realestate.com); make your own assessment of a property’s current market value; and make an offer accordingly. The last thing you want to do as a purchaser is to offend the vendor as this can make any negotiation more difficult and you may miss out on a great opportunity. Our last piece of advice for prospective buyers is to make sure you have spoken with your Lender/Bank regarding your investment intentions before you get into a price negotiation to ensure they are happy to give you the green light when it comes to a property purchase.
In general news, we were absolutely shocked last month when two of our holiday properties were broken into and TVs stolen. We became aware of the first incident whilst doing a spot check of one of the properties and noticed that the large, flat screen TV was missing. We checked with the property owners to make sure they hadn’t removed the TV for any reason (hoping they’d taken it to their permanent residence to watch Qld beat the blues in the State of Origin for example ); but – alas – they had no idea where the TV was. We reported the theft to our local police and they investigated. Less than a week later, another property was found minus a TV! By this stage, we were devastated. We have lived in Rainbow for over 4 years and have never been concerned about petty theft or crime of any kind. Anyway, the great news is – our local police have since found the culprit and the TVs have been returned to their rightful place. A massive thank you to our local ‘boys in blue’ for their excellent police work!! It is very much appreciated. And….. let that be a lesson to anyone who thinks it is ok to steal other people’s stuff! You will get caught. A small town like ours should pride itself on its low crime rate.
Thursday, June 21, 2012
Rainbow Realty Deal - July 2012
“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Ronald Reagan
As a general market update, since writing our last article, we have had five properties go ‘under contract’. We wouldn’t want to get too excited and necessarily announce that the property market has recovered but we would go so far as to say that we think we’ve seen the worst of it in terms of lack of buyer interest. The Mortgagee in Possession Auction on Saturday the 9th of June for 98 Cooloola Drive was attended by over 20 people (and Rainbow put on a horrible, freezing, rainy, windy day). There were 4 registered bidders and after a slow start and a Vendor bid, the property sold under the hammer for $700,000.
The house had previously sold for $1.15million in 2008 and again for $965,000 (at a Mortgagee in Possession Auction) in 2010. Interestingly, the State Government was quick to call us on the next business day to enquire as to whether or not the house had sold and for what price. Perhaps that puts a bit of a dent in their Valuer General’s calculations? 98 Cooloola Drive was given an ‘Unimproved Value’ of $850,000 as at 1 July 2011. Ie. With no house at all on the land, the Valuer General believed the property was worth $150,000 more than what it sold for after a 5 week Auction campaign including approximately $6,000 worth of marketing.
The purchase of 98 Cooloola Drive is a great testament to the town as the buyers actually already own property here. They obviously believe that Rainbow Beach has a solid future of growth; hence they have invested again in our beautiful town. The recent construction of significant infrastructure in Rainbow such as the state-of-the-art Aquatic Centre and Town Hall makes it easy to see that both local and state Government can see the town growing more. We are also confident and passionate about our town; so much so that we felt compelled to write a letter to the Community News editor about it.
One of our other most recent sales has also set a new bench mark in town for properties with views. 28 Manooka Drive has just sold for $450,000. The property features: three bedrooms, two bathrooms, two car accommodation, ocean views and a fully fenced, 660m2 block. The property is in need of some tender loving care/renovations as it is in it’s original 1980’s state; however, the new owners have been keeping an eye on the Rainbow Beach market for over three years and saw the potential of the property from the moment they saw it come onto the market. The property was listed for $480,000 on the 25th of May and went ‘under contract’ on the 4th of June. With a ‘time on market’ of just 10 days – we are confident that the list price was set correctly and the vendor now has a great result without having to wait months, if not years, to achieve a sale.
Essentially, this sale is proof that if you have a saleable property and it is listed at a reasonable price (based on a comparative market analysis of recent comparable sales) – properties are still selling even in a ‘tough market’.
Another recent sale which has surprised a few people is that of 35 Satinwood Drive in Rainbow Shores. The property features: three bedrooms, one bathroom, one car accommodation, in ground pool with bali hut, 688m2 block and all within five minutes’ walk to the beach. 35 Satinwood Drive sold for $390,000. The most recent sale of a vacant block of land in the same street was for $330,000 (14 Satinwood Drive, 799m2 block, sold in 2009).
We have another two ‘Mortgagee in Possession’ Auctions coming up on the 7th of July. National Australia Bank has appointed Cooloola Coast Realty as exclusive agents for both Unit 2/7 and Unit 10/5 Ocean View Parade. Both units would have sold for well in excess of $1 million in 2008; however, we have appraised them at $830,000 - $850,000 and $770,000 - $810,000 respectively. It remains to be seen what Reserves will be set on the day of the Auction; however, based on what we saw at 98 Cooloola Drive on Auction day – we would not be shocked if the Reserves were much different to our appraisal.
Our Auctioneer, Graham Engeman is going to have a very busy day on the 7th of July and he better warm up his vocal cords because he is running four Auctions in total on the day. After the Auctions on Unit 2/7 and Unit 10/5 Ocean View Parade; we are also Auctioning Unit 12 & 14/103 Cooloola Drive (Ocean Palms Resort). These Auctions are for two of the Developers’ original stock which he has held for over five years now. Both Units are part of the holiday letting pool and are very popular so they have excellent income figures, representing a solid investment. The original Developer of Ocean Palms Resort, (who also went onto to develop the iconic Rainbow Sea Resort) is looking to meet the market and will sell two units for well below replacement cost, including all furniture. The Auctions for these units will be held onsite and begin at 2.30pm on Saturday the 7th of July.
Finally, June saw the end of hearings for the Rainbow Shores Stage II case. Summations will be heard in mid-July and we are expecting a decision later this year. The court case has become the largest ever of its kind with over 30 sitting days and dozens of exhibits submitted as evidence. Ultimately, a decision will be made and given the length and extent of the court case itself; there should be no grounds for appeal from either side.
As a general market update, since writing our last article, we have had five properties go ‘under contract’. We wouldn’t want to get too excited and necessarily announce that the property market has recovered but we would go so far as to say that we think we’ve seen the worst of it in terms of lack of buyer interest. The Mortgagee in Possession Auction on Saturday the 9th of June for 98 Cooloola Drive was attended by over 20 people (and Rainbow put on a horrible, freezing, rainy, windy day). There were 4 registered bidders and after a slow start and a Vendor bid, the property sold under the hammer for $700,000.
The house had previously sold for $1.15million in 2008 and again for $965,000 (at a Mortgagee in Possession Auction) in 2010. Interestingly, the State Government was quick to call us on the next business day to enquire as to whether or not the house had sold and for what price. Perhaps that puts a bit of a dent in their Valuer General’s calculations? 98 Cooloola Drive was given an ‘Unimproved Value’ of $850,000 as at 1 July 2011. Ie. With no house at all on the land, the Valuer General believed the property was worth $150,000 more than what it sold for after a 5 week Auction campaign including approximately $6,000 worth of marketing.
The purchase of 98 Cooloola Drive is a great testament to the town as the buyers actually already own property here. They obviously believe that Rainbow Beach has a solid future of growth; hence they have invested again in our beautiful town. The recent construction of significant infrastructure in Rainbow such as the state-of-the-art Aquatic Centre and Town Hall makes it easy to see that both local and state Government can see the town growing more. We are also confident and passionate about our town; so much so that we felt compelled to write a letter to the Community News editor about it.
One of our other most recent sales has also set a new bench mark in town for properties with views. 28 Manooka Drive has just sold for $450,000. The property features: three bedrooms, two bathrooms, two car accommodation, ocean views and a fully fenced, 660m2 block. The property is in need of some tender loving care/renovations as it is in it’s original 1980’s state; however, the new owners have been keeping an eye on the Rainbow Beach market for over three years and saw the potential of the property from the moment they saw it come onto the market. The property was listed for $480,000 on the 25th of May and went ‘under contract’ on the 4th of June. With a ‘time on market’ of just 10 days – we are confident that the list price was set correctly and the vendor now has a great result without having to wait months, if not years, to achieve a sale.
Essentially, this sale is proof that if you have a saleable property and it is listed at a reasonable price (based on a comparative market analysis of recent comparable sales) – properties are still selling even in a ‘tough market’.
Another recent sale which has surprised a few people is that of 35 Satinwood Drive in Rainbow Shores. The property features: three bedrooms, one bathroom, one car accommodation, in ground pool with bali hut, 688m2 block and all within five minutes’ walk to the beach. 35 Satinwood Drive sold for $390,000. The most recent sale of a vacant block of land in the same street was for $330,000 (14 Satinwood Drive, 799m2 block, sold in 2009).
We have another two ‘Mortgagee in Possession’ Auctions coming up on the 7th of July. National Australia Bank has appointed Cooloola Coast Realty as exclusive agents for both Unit 2/7 and Unit 10/5 Ocean View Parade. Both units would have sold for well in excess of $1 million in 2008; however, we have appraised them at $830,000 - $850,000 and $770,000 - $810,000 respectively. It remains to be seen what Reserves will be set on the day of the Auction; however, based on what we saw at 98 Cooloola Drive on Auction day – we would not be shocked if the Reserves were much different to our appraisal.
Our Auctioneer, Graham Engeman is going to have a very busy day on the 7th of July and he better warm up his vocal cords because he is running four Auctions in total on the day. After the Auctions on Unit 2/7 and Unit 10/5 Ocean View Parade; we are also Auctioning Unit 12 & 14/103 Cooloola Drive (Ocean Palms Resort). These Auctions are for two of the Developers’ original stock which he has held for over five years now. Both Units are part of the holiday letting pool and are very popular so they have excellent income figures, representing a solid investment. The original Developer of Ocean Palms Resort, (who also went onto to develop the iconic Rainbow Sea Resort) is looking to meet the market and will sell two units for well below replacement cost, including all furniture. The Auctions for these units will be held onsite and begin at 2.30pm on Saturday the 7th of July.
Finally, June saw the end of hearings for the Rainbow Shores Stage II case. Summations will be heard in mid-July and we are expecting a decision later this year. The court case has become the largest ever of its kind with over 30 sitting days and dozens of exhibits submitted as evidence. Ultimately, a decision will be made and given the length and extent of the court case itself; there should be no grounds for appeal from either side.
Rainbow Realty Deal - June 2012
“Freedom of the press is guaranteed only to those who own one.”
A. J. Liebling
You may have seen the stories in the Gympie Times and Fraser Chronicle last month and had a quiet chuckle as we did, but the reports of increased backpacker numbers in Rainbow Beach have ruffled a few local feathers. The success of Rainbow Beach as the real backpackers' "gateway to Fraser Island" has thrown its Fraser Coast competition into chaos. News of the closure of Hervey Bay's “Next Backpackers” resort follows less than two months after the news that tour promoter “Nomads Fraser Island Tours” had quit the Fraser Coast.
As previously reported in our monthly article, “Nomads” announced that all its operations will now be coming out of Rainbow Beach. It seems to have been the last straw for “Next Backpackers”, once regarded as one of the Fraser Coast's biggest backpacking operators. Former “Next Backpackers” manager Mark Juppenlatz acknowledged the new tourism reality in March. "Just about every major player in the backpacking market is now operating in Rainbow Beach," he said. (Source: Gympie Times, 17th May 2012) Receivers and managers, BDO have confirmed that the 100-bed operation (“Next Backpackers” in Hervey Bay) had closed. BDO partner Helen Newman said her company had been monitoring the hostel since May last year and would now rid itself of the asset. Meanwhile, “Fraser Roving Backpackers” owner John Hayes said the industry was hemorrhaging in Hervey Bay and has called for "Tourism Fraser Coast, Tourism Queensland, the Fraser Coast Regional Council and the LNP government need to do something."
Just what Mr Hayes wants the government to do about the issue is unclear – force backpackers to choose Hervey Bay over Rainbow Beach? Ultimately, as eloquently put by a Tourism Fraser Coast board of directors member, David Hay, has said “"There are both organisations and individuals with vested interests in Rainbow Beach who have power in the booking distribution system and the ability to push business into Rainbow Beach as opposed to this end." (referring to Hervey Bay). (Source: Fraser Coast Chronicle, 15th May 2012) Generally speaking, Rainbow Beach businesses want the town to grow naturally into its new role as a regional tourism leader. The government cannot dictate routes of travel and itineraries to backpackers and cannot control the business decisions of individual businesses and groups. Queensland Premier, Campbell Newman has promised help for embattled sections of the tourist industry across Queensland (including Airlie Beach, Mission Beach and Port Douglas).
But as expressed by the Rainbow Beach Commerce and Tourism Association President, Scott Elms, there is a risk that any government assistance for Hervey Bay could disadvantage Rainbow Beach. "They would be robbing Peter to pay Paul," he has said. Scott Elms’ controversial comments have ignited a mini scandal amongst the regional Tourism Boards with healthy competition and camaraderie turning a little nasty when people’s livelihoods are potentially at stake. In saying that, many of Mr Elms’ comments have some validity, for example: “Hervey Bay has grown, not necessarily because it was superior, but because it had freehold land and the government had not stopped it. Hervey Bay was now losing the battle because tourists were choosing Rainbow Beach instead.” And it is a choice they are entitled to make.
"You can't force people to holiday at Hervey Bay. We (Rainbow Beach) have beaches, national park bushwalking and faster access to Fraser Island. We are a natural tourism leader and we are the real gateway to Fraser Island”. In addition, “Hervey Bay needs to accept that, apart from whale watching season, it is not a tourist destination, it's a retirement village," Mr Elms has said. (These comments are arguably somewhat offensive – kind of funny though – and in the context of the argument, proving to be pretty close to the mark ) Against the odds to a degree, Rainbow Beach is somehow surviving the same economic times which has set off a ripple effect of business collapses in Hervey Bay. Mr Elms has also said, "Things are tight in Rainbow, but so far we've avoided the significant contraction of business which has occurred in other tourism centres, including Cairns, Hervey Bay and Airlie Beach." (Source: Gympie Times, 18th May 2012)
Rainbow Beach has very much ‘come of age’ over the past 4-5 years with a massive increase in accommodation providers, most of which are more ‘high end’ versus ‘budget’. The investment in local infrastructure such as the Aquatic Centre and Town Hall has drawn positive comment from many visitors, particularly those who had not been to Rainbow for a number of years. Ultimately, we need to play to our strengths when it comes to attracting visitors/tourists and we have a lot of natural attractions to offer. Our appeal is certainly more so the natural attractions as opposed to the ‘high-rise-theme-park-shopping-mall’ thing – which we are unlikely to ever be able to compete on in comparison to the Gold Coast and more built up sections of the Sunshine Coast but that’s ok because a lot of families are looking to ‘get back to basics’ more and enjoy a more traditional family holiday (that doesn’t cost a fortune as well).
Finally, in completely property market related news, we have our Auction at 98 Cooloola Drive going ahead on Saturday the 9th of June at 1pm. Our previous local Councillor, Graham Engeman, will be the Auctioneer on the day and we are expecting some local and interstate interest as the bank is now is possession of the Mortgage on the property.
You may have seen the stories in the Gympie Times and Fraser Chronicle last month and had a quiet chuckle as we did, but the reports of increased backpacker numbers in Rainbow Beach have ruffled a few local feathers. The success of Rainbow Beach as the real backpackers' "gateway to Fraser Island" has thrown its Fraser Coast competition into chaos. News of the closure of Hervey Bay's “Next Backpackers” resort follows less than two months after the news that tour promoter “Nomads Fraser Island Tours” had quit the Fraser Coast.
As previously reported in our monthly article, “Nomads” announced that all its operations will now be coming out of Rainbow Beach. It seems to have been the last straw for “Next Backpackers”, once regarded as one of the Fraser Coast's biggest backpacking operators. Former “Next Backpackers” manager Mark Juppenlatz acknowledged the new tourism reality in March. "Just about every major player in the backpacking market is now operating in Rainbow Beach," he said. (Source: Gympie Times, 17th May 2012) Receivers and managers, BDO have confirmed that the 100-bed operation (“Next Backpackers” in Hervey Bay) had closed. BDO partner Helen Newman said her company had been monitoring the hostel since May last year and would now rid itself of the asset. Meanwhile, “Fraser Roving Backpackers” owner John Hayes said the industry was hemorrhaging in Hervey Bay and has called for "Tourism Fraser Coast, Tourism Queensland, the Fraser Coast Regional Council and the LNP government need to do something."
Just what Mr Hayes wants the government to do about the issue is unclear – force backpackers to choose Hervey Bay over Rainbow Beach? Ultimately, as eloquently put by a Tourism Fraser Coast board of directors member, David Hay, has said “"There are both organisations and individuals with vested interests in Rainbow Beach who have power in the booking distribution system and the ability to push business into Rainbow Beach as opposed to this end." (referring to Hervey Bay). (Source: Fraser Coast Chronicle, 15th May 2012) Generally speaking, Rainbow Beach businesses want the town to grow naturally into its new role as a regional tourism leader. The government cannot dictate routes of travel and itineraries to backpackers and cannot control the business decisions of individual businesses and groups. Queensland Premier, Campbell Newman has promised help for embattled sections of the tourist industry across Queensland (including Airlie Beach, Mission Beach and Port Douglas).
But as expressed by the Rainbow Beach Commerce and Tourism Association President, Scott Elms, there is a risk that any government assistance for Hervey Bay could disadvantage Rainbow Beach. "They would be robbing Peter to pay Paul," he has said. Scott Elms’ controversial comments have ignited a mini scandal amongst the regional Tourism Boards with healthy competition and camaraderie turning a little nasty when people’s livelihoods are potentially at stake. In saying that, many of Mr Elms’ comments have some validity, for example: “Hervey Bay has grown, not necessarily because it was superior, but because it had freehold land and the government had not stopped it. Hervey Bay was now losing the battle because tourists were choosing Rainbow Beach instead.” And it is a choice they are entitled to make.
"You can't force people to holiday at Hervey Bay. We (Rainbow Beach) have beaches, national park bushwalking and faster access to Fraser Island. We are a natural tourism leader and we are the real gateway to Fraser Island”. In addition, “Hervey Bay needs to accept that, apart from whale watching season, it is not a tourist destination, it's a retirement village," Mr Elms has said. (These comments are arguably somewhat offensive – kind of funny though – and in the context of the argument, proving to be pretty close to the mark ) Against the odds to a degree, Rainbow Beach is somehow surviving the same economic times which has set off a ripple effect of business collapses in Hervey Bay. Mr Elms has also said, "Things are tight in Rainbow, but so far we've avoided the significant contraction of business which has occurred in other tourism centres, including Cairns, Hervey Bay and Airlie Beach." (Source: Gympie Times, 18th May 2012)
Rainbow Beach has very much ‘come of age’ over the past 4-5 years with a massive increase in accommodation providers, most of which are more ‘high end’ versus ‘budget’. The investment in local infrastructure such as the Aquatic Centre and Town Hall has drawn positive comment from many visitors, particularly those who had not been to Rainbow for a number of years. Ultimately, we need to play to our strengths when it comes to attracting visitors/tourists and we have a lot of natural attractions to offer. Our appeal is certainly more so the natural attractions as opposed to the ‘high-rise-theme-park-shopping-mall’ thing – which we are unlikely to ever be able to compete on in comparison to the Gold Coast and more built up sections of the Sunshine Coast but that’s ok because a lot of families are looking to ‘get back to basics’ more and enjoy a more traditional family holiday (that doesn’t cost a fortune as well).
Finally, in completely property market related news, we have our Auction at 98 Cooloola Drive going ahead on Saturday the 9th of June at 1pm. Our previous local Councillor, Graham Engeman, will be the Auctioneer on the day and we are expecting some local and interstate interest as the bank is now is possession of the Mortgage on the property.
Wednesday, May 16, 2012
Rainbow Beach Real Estate Newsletter May 2012
“I am extraordinarily
patient, provided I get my own way in the end.”
Margaret Thatcher
Margaret Thatcher
The ‘expressions of
interest’ to purchase the remaining 17 Developers stock Plantation Resort apartments closed on 7 March 2012. The latest advice from
the selling agents, Knight Frank of Brisbane, is that they are negotiating with
a prospective buyer to purchase all 17 apartments as well as the Hotel and
commercial precinct (excluding the shops that have been sold already. Ie. The
Post Office, 13th Beach and Crème de la Crème).
In other local property news, the
Commonwealth bank is taking possession of 98 Cooloola Drive (across the road
from the Waterview Bistro). This same property was purchased by the current
owners at a ‘mortgagee in possession’ auction less than two years ago. The last
sale price was $965,000, having previously sold for $1.15 million in April
2008. Cooloola Coast Realty has been appointed as the selling agents for the
Auction which will take place at the end of May.
Given that less than 10 Rainbow Beach
residential properties have changed hands so far this Financial Year, it
remains to be seen whether or not any mortgagee in possession type marketing
will result in a more positive results.
In other news, you may have seen the article
in the Gympie Times on 23rd March about the rise in backpacker
numbers in Rainbow Beach. Very funny title actually : “Has-been Bay Versus
Rainbow Boom”. The article pointed out the demise of Hervey Bay’s backpacker
industry and how many operators are now basing their Fraser Coast tours and
accommodation packages out of Rainbow. “And the Gympie Region's Rainbow Beach -
with its surf, coloured sands and beaches that go on forever - has suddenly
emerged for youthful travelers as the fashionable new gateway to Fraser Island.”
(Source: Gympie Times, 23 Mar 12)
Hervey Bay's once thriving backpacker
industry has been suffering over the past couple of years with many operators
pulling out of the area and fewer barges and ferries travelling across to
Fraser Island compared to how many used to operate. This was made worse by a
Fraser Coast Council decision to move the ferry departure point from Hervey Bay
itself to River Heads (approximately 20 kilometres out of town). Major player,
‘Nomads Fraser Island Tours’ recently announced that all of its operations will
now come out of Rainbow Beach, with pre and post tour accommodation supplied by
local backpackers resorts. Alongside ‘Oz Tours’, ‘Peter Pans’, ‘Fraser
Explorer’, local operators such as Dingos’ also offer backpackers tours and
overnight/camping trips to Fraser Island.
Essentially, it makes a lot more sense for
Fraser Island tours/backpacker operations to be based out of Rainbow Beach. The
barge trip is less than 10 minutes and many of the major natural attractions
are on the eastern side of the island (eg. Eli Creek, Maheno Shipwreck, Indian
Head, Champagne Pools, etc). Almost every
major player in the backpacking market is now operating out of Rainbow Beach
because of its easy access to Fraser Island.
From a general tourism/visitor point of view, it is also a lot less expensive to travel to Fraser Island from Rainbow Beach. Barge tickets from Rainbow to Fraser are $100 return whilst a ferry ticket from River Heads (just south of Hervey Bay) to Kingfisher Bay on Fraser Island can cost up to $180 one way.
The head of Tourism Fraser Coast, Chief
executive Damien Massingham has said that whilst the departure of ‘Nomads
Fraser Island Tours’ from Hervey Bay was a loss for local tourism, it shouldn't
create a panic that other operators will follow suit. Mr Massingham called on
the Bay's remaining tour operators to step up and capitalise on the departure
of Nomads. But Mark Juppenlatz of ‘Next Backpackers’ in Torquay said it wasn't
that simple. He said the major conglomerates down at Rainbow Beach are
dominating the backpacker market and Fraser Coast operators simply can't
compete. "All the major players in the self-drive tours are now based in
Rainbow Beach, which holds a good majority of the (driving) permits. "You've
only got three competitors with permits left in the Bay - one semi major player
and two very minor players." (Source: Fraser Chronicle 23 Mar 12).
The emergence of Rainbow Beach as a key destination
on the backpacker route will benefit the town immensely. Our local tourism
industry will grow, which provides jobs and additional money into the local
economy. This will obviously have a flow on effect of more people wanting to
live and work here, so that they can enjoy the beach side lifestyle that so many
people aspire to.
There definitely seems to be a general shift
towards Rainbow Beach and although domestic tourism numbers are down across
Queensland, many Rainbow Beach operators are reporting steady figures and in
some cases, increased figures over the past couple of years. The town has
certainly been “discovered” by a new generation of visitors and many families
are embracing the fact that we don’t have big shopping malls and movie theatres
BUT we do have a great surf beach, beautiful weather, good fishing and plenty
of natural attractions (Sand Blow, Carlo Point, Seary’s Creek, etc) to keep
people busy and active.
With the recent additions of a new Community
Hall/Library as well as the fantastic Aquatic Centre (love it! J) you could almost say that Rainbow Beach is ‘coming of
age’ and becoming recognised as a destination in its own right (rather than
just a stop off on the way to Fraser Island or a place to pick up milk and
bread before you camp at Inskip for a week).
Having recently travelled from Rainbow Beach
to Kinka Beach (near Rockhampton) and then onto Airlie Beach and back by road –
and checking out all the real estate on offer in between….. we can honestly
(and without bias J) say that Rainbow Beach is hard to beat. The growth of
the tourism industry here will have a positive impact on property prices as
demand will increase through population growth and solid job opportunities.
Sunday, March 25, 2012
Rainbow Realty Deal April 2012
“I am extraordinarily patient, provided I get my own way in the end.”Margaret Thatcher
The ‘expressions of interest’ to purchase the remaining 17 Developers stock Plantation Resort apartments closed on 7 March 2012. The latest advice from the selling agents, Knight Frank of Brisbane, is that they are negotiating with a prospective buyer to purchase all 17 apartments as well as the Hotel and commercial precinct (excluding the shops that have been sold already. Ie. The Post Office, 13th Beach and Crème de la Crème).
In other local property news, the Commonwealth bank is taking possession of 98 Cooloola Drive (across the road from the Waterview Bistro). This same property was purchased by the current owners at a ‘mortgagee in possession’ auction less than two years ago. The last sale price was $965,000, having previously sold for $1.15 million in April 2008.
Given that less than 10 Rainbow Beach residential properties have changed hands so far this Financial Year, it remains to be seen whether or not any mortgagee in possession type marketing will result in a more positive results.
In other news, you may have seen the article in the Gympie Times on 23rd March about the rise in backpacker numbers in Rainbow Beach. Very funny title actually : “Has-been Bay Versus Rainbow Boom”. The article pointed out the demise of Hervey Bay’s backpacker industry and how many operators are now basing their Fraser Coast tours and accommodation packages out of Rainbow. “And the Gympie Region's Rainbow Beach - with its surf, coloured sands and beaches that go on forever - has suddenly emerged for youthful travelers as the fashionable new gateway to Fraser Island.” (Source: Gympie Times, 23 Mar 12)
Hervey Bay's once thriving backpacker industry has been suffering over the past couple of years with many operators pulling out of the area and fewer barges and ferries travelling across to Fraser Island compared to how many used to operate. This was made worse by a Fraser Coast Council decision to move the ferry departure point from Hervey Bay itself to River Heads (approximately 20 kilometres out of town). Major player, ‘Nomads Fraser Island Tours’ recently announced that all of its operations will now come out of Rainbow Beach, with pre and post tour accommodation supplied by local backpackers resorts. Alongside ‘Oz Tours’, ‘Peter Pans’, ‘Fraser Explorer’, local operators such as Dingos’ also offer backpackers tours and overnight/camping trips to Fraser Island.
Essentially, it makes a lot more sense for Fraser Island tours/backpacker operations to be based out of Rainbow Beach. The barge trip is less than 10 minutes and many of the major natural attractions are on the eastern side of the island (eg. Eli Creek, Maheno Shipwreck, Indian Head, Champagne Pools, etc). Almost every major player in the backpacking market is now operating out of Rainbow Beach because of its easy access to Fraser Island.
From a general tourism/visitor point of view, it is also a lot less expensive to travel to Fraser Island from Rainbow Beach. Barge tickets from Rainbow to Fraser are $100 return whilst a ferry ticket from River Heads (just south of Hervey Bay) to Kingfisher Bay on Fraser Island can cost up to $180 one way.
The head of Tourism Fraser Coast, Chief executive Damien Massingham has said that whilst the departure of ‘Nomads Fraser Island Tours’ from Hervey Bay was a loss for local tourism, it shouldn't create a panic that other operators will follow suit. Mr Massingham called on the Bay's remaining tour operators to step up and capitalise on the departure of Nomads. But Mark Juppenlatz of ‘Next Backpackers’ in Torquay said it wasn't that simple. He said the major conglomerates down at Rainbow Beach are dominating the backpacker market and Fraser Coast operators simply can't compete. "All the major players in the self-drive tours are now based in Rainbow Beach, which holds a good majority of the (driving) permits. "You've only got three competitors with permits left in the Bay - one semi major player and two very minor players." (Source: Fraser Chronicle 23 Mar 12).
The emergence of Rainbow Beach as a key destination on the backpacker route will benefit the town immensely. Our local tourism industry will grow, which provides jobs and additional money into the local economy. This will obviously have a flow on effect of more people wanting to live and work here, so that they can enjoy the beach side lifestyle that so many people aspire to.
There definitely seems to be a general shift towards Rainbow Beach and although domestic tourism numbers are down across Queensland, many Rainbow Beach operators are reporting steady figures and in some cases, increased figures over the past couple of years. The town has certainly been “discovered” by a new generation of visitors and many families are embracing the fact that we don’t have big shopping malls and movie theatres BUT we do have a great surf beach, beautiful weather, good fishing and plenty of natural attractions (Sand Blow, Carlo Point, Seary’s Creek, etc) to keep people busy and active.
With the recent additions of a new Community Hall/Library as well as the fantastic Aquatic Centre (love it! J) you could almost say that Rainbow Beach is ‘coming of age’ and becoming recognised as a destination in its own right (rather than just a stop off on the way to Fraser Island or a place to pick up milk and bread before you camp at Inskip for a week).
Having recently travelled from Rainbow Beach to Kinka Beach (near Rockhampton) and then onto Airlie Beach and back by road – and checking out all the real estate on offer in between….. we can honestly (and without bias J) say that Rainbow Beach is hard to beat. The growth of the tourism industry here will have a positive impact on property prices as demand will increase through population growth and solid job opportunities.
The ‘expressions of interest’ to purchase the remaining 17 Developers stock Plantation Resort apartments closed on 7 March 2012. The latest advice from the selling agents, Knight Frank of Brisbane, is that they are negotiating with a prospective buyer to purchase all 17 apartments as well as the Hotel and commercial precinct (excluding the shops that have been sold already. Ie. The Post Office, 13th Beach and Crème de la Crème).
In other local property news, the Commonwealth bank is taking possession of 98 Cooloola Drive (across the road from the Waterview Bistro). This same property was purchased by the current owners at a ‘mortgagee in possession’ auction less than two years ago. The last sale price was $965,000, having previously sold for $1.15 million in April 2008.
Given that less than 10 Rainbow Beach residential properties have changed hands so far this Financial Year, it remains to be seen whether or not any mortgagee in possession type marketing will result in a more positive results.
In other news, you may have seen the article in the Gympie Times on 23rd March about the rise in backpacker numbers in Rainbow Beach. Very funny title actually : “Has-been Bay Versus Rainbow Boom”. The article pointed out the demise of Hervey Bay’s backpacker industry and how many operators are now basing their Fraser Coast tours and accommodation packages out of Rainbow. “And the Gympie Region's Rainbow Beach - with its surf, coloured sands and beaches that go on forever - has suddenly emerged for youthful travelers as the fashionable new gateway to Fraser Island.” (Source: Gympie Times, 23 Mar 12)
Hervey Bay's once thriving backpacker industry has been suffering over the past couple of years with many operators pulling out of the area and fewer barges and ferries travelling across to Fraser Island compared to how many used to operate. This was made worse by a Fraser Coast Council decision to move the ferry departure point from Hervey Bay itself to River Heads (approximately 20 kilometres out of town). Major player, ‘Nomads Fraser Island Tours’ recently announced that all of its operations will now come out of Rainbow Beach, with pre and post tour accommodation supplied by local backpackers resorts. Alongside ‘Oz Tours’, ‘Peter Pans’, ‘Fraser Explorer’, local operators such as Dingos’ also offer backpackers tours and overnight/camping trips to Fraser Island.
Essentially, it makes a lot more sense for Fraser Island tours/backpacker operations to be based out of Rainbow Beach. The barge trip is less than 10 minutes and many of the major natural attractions are on the eastern side of the island (eg. Eli Creek, Maheno Shipwreck, Indian Head, Champagne Pools, etc). Almost every major player in the backpacking market is now operating out of Rainbow Beach because of its easy access to Fraser Island.
From a general tourism/visitor point of view, it is also a lot less expensive to travel to Fraser Island from Rainbow Beach. Barge tickets from Rainbow to Fraser are $100 return whilst a ferry ticket from River Heads (just south of Hervey Bay) to Kingfisher Bay on Fraser Island can cost up to $180 one way.
The head of Tourism Fraser Coast, Chief executive Damien Massingham has said that whilst the departure of ‘Nomads Fraser Island Tours’ from Hervey Bay was a loss for local tourism, it shouldn't create a panic that other operators will follow suit. Mr Massingham called on the Bay's remaining tour operators to step up and capitalise on the departure of Nomads. But Mark Juppenlatz of ‘Next Backpackers’ in Torquay said it wasn't that simple. He said the major conglomerates down at Rainbow Beach are dominating the backpacker market and Fraser Coast operators simply can't compete. "All the major players in the self-drive tours are now based in Rainbow Beach, which holds a good majority of the (driving) permits. "You've only got three competitors with permits left in the Bay - one semi major player and two very minor players." (Source: Fraser Chronicle 23 Mar 12).
The emergence of Rainbow Beach as a key destination on the backpacker route will benefit the town immensely. Our local tourism industry will grow, which provides jobs and additional money into the local economy. This will obviously have a flow on effect of more people wanting to live and work here, so that they can enjoy the beach side lifestyle that so many people aspire to.
There definitely seems to be a general shift towards Rainbow Beach and although domestic tourism numbers are down across Queensland, many Rainbow Beach operators are reporting steady figures and in some cases, increased figures over the past couple of years. The town has certainly been “discovered” by a new generation of visitors and many families are embracing the fact that we don’t have big shopping malls and movie theatres BUT we do have a great surf beach, beautiful weather, good fishing and plenty of natural attractions (Sand Blow, Carlo Point, Seary’s Creek, etc) to keep people busy and active.
With the recent additions of a new Community Hall/Library as well as the fantastic Aquatic Centre (love it! J) you could almost say that Rainbow Beach is ‘coming of age’ and becoming recognised as a destination in its own right (rather than just a stop off on the way to Fraser Island or a place to pick up milk and bread before you camp at Inskip for a week).
Having recently travelled from Rainbow Beach to Kinka Beach (near Rockhampton) and then onto Airlie Beach and back by road – and checking out all the real estate on offer in between….. we can honestly (and without bias J) say that Rainbow Beach is hard to beat. The growth of the tourism industry here will have a positive impact on property prices as demand will increase through population growth and solid job opportunities.
Saturday, February 4, 2012
February 2012 Community News Article
"A stockbroker urged me to buy a stock that would triple its value every year. I told him, "At my age, I don't even buy green bananas."
Claude Pepper
By the time you read this article, the case relating to the development of Rainbow Shores Stage II will have been heard by the Planning and Environment Court. The Judge is likely to deliberate for approximately one month and with any luck, we will have a decision – one way or another – by the end of March this year.
A two day site inspection was conducted at Rainbow Beach by the Judge on the 12th and 13th of December, 2011. The trial itself was set down for 15 days, beginning on January 16, 2012. The case is quite large and complex and involves the provision of evidence from numerous experts. In May 2011, both the Department of Environment and Resource Management and Gympie Regional Council sought to have new experts admitted to the case in order to better deal with issues of effluent disposal and groundwater impact related to the development.
The case itself involves: Rainbow Shores, Gympie Regional Council, the
Department of Environment and Resource Management, J Lawler, Citizens Helping Inskip Peninsula, M Lawler, R & S Ruescher and E Devereux, Fraser Island Defenders Organisation (FIDO), Rainbow Beach Commerce and Tourism Association, Greg Wood, Fiona Hawthorne, Vivian Griffin, National Parks Association of Queensland, Cooloola Coastcare and the Department of Main Roads. FIDO has since withdrawn from the trial as a respondent. (Source: Citizens Helping Inskip Peninsula website).
The State Government determined in 1983 that the land north of Pacific Boulevard should be developed to meet the growing population and tourism needs of the region and subsequently issued a development lease. The Developer paid for a lease to develop the land. Under the terms of the lease the lessee must instigate development of the land. Once certain conditions have been met and development approvals received, the land will be developed. The development of the Rainbow Shores Stage 1 has now reached a point where it is appropriate to get the approvals for Stage 2 to allow for a well- planned overall development.
Economically, we believe that Rainbow Shores Stage 2 will cater for the increasing demand for residential land in South East Queensland. The development will also provide extra accommodation for visitors and help develop a healthy local tourism industry. These new commercial opportunities will create a range of employment in the community. A growing population increases the rates base of a local council. This extra funding can then be used by council to deliver improved community services. On a social level, more jobs will create greater wealth and diversity in the community with an increased range of social interaction opportunities.
There has been some misinformation disseminated relating to the development and some of those ‘urban myths’ are discussed below:
1. Camping at Inskip Point will be reduced/detrimentally effected by Stage 2 – camping has never been allowed in Rainbow Shores and the proposed development will have no impact on the availability on campgrounds at Inskip.
2. The area encompassed by the proposed development is purported to be pristine and of ‘World Heritage quality’ - in actual fact, there is very little evidence of native flora and fauna endemic to the site. Scrub turkeys and brumbies are prolific and the area itself is mostly regrowth with extensive sand mining having taken place less than 40 years ago.
3. The site is low-lying and will be prone to inundation by sea water from storm surges etc. - The site is protected by a 145m beach protection buffer. The storm water and flooding provisions in Stage 2 are identical to the ones in Stage 1. The high permeability of the sand ensures that water will drain, even in periods of high rainfall.
4. The ecology of the site will be detrimentally impacted by any development – based on the precedence that the developer has set through Stage 1 of Rainbow Shores it would appear that environmental impacts are minimal. The developer has incorporated “green fingers” into the housing subdivision and wildlife such as green tree frogs, bandicoots, possums, native birds and snakes etc are prolific within close proximity to existing homes.
It would be fair to say that the Developer has demonstrated a capacity to produce an ecologically sustainable development – based on the example provided by Rainbow Shores Stage I. No one wants to see unsustainable development and ultimately, any decision by the Planning and Environment Court will be welcomed even if all we have is certainty about the future of our town in relation to growth and expansion (and in some cases, the medium to long-term viability of local businesses).
As has been previously pointed out by those opposed to Rainbow Shores Stage II, areas west/south-west of Rainbow Beach (beyond Bombala Crescent and Tingira Close are subject to Native Title issues and would take a lot of time and money to process (ultimately costing Ratepayers and Taxpayers – ie. Us. Money).
Many local residents and property owners have invested (individually and collectively) millions of dollars in this town over the years and it would be a shame to see a lot of that hard work and commitment go to waste through the loss of a controversial case which is mostly contested by people who neither work, live or own property in Rainbow Beach.
It would also be a great loss to the community to see the future of Rainbow Beach stifled by lack of growth and expansion opportunities, denying many people the chance to live, invest or visit here and enjoy the beautiful natural surroundings.
Claude Pepper
By the time you read this article, the case relating to the development of Rainbow Shores Stage II will have been heard by the Planning and Environment Court. The Judge is likely to deliberate for approximately one month and with any luck, we will have a decision – one way or another – by the end of March this year.
A two day site inspection was conducted at Rainbow Beach by the Judge on the 12th and 13th of December, 2011. The trial itself was set down for 15 days, beginning on January 16, 2012. The case is quite large and complex and involves the provision of evidence from numerous experts. In May 2011, both the Department of Environment and Resource Management and Gympie Regional Council sought to have new experts admitted to the case in order to better deal with issues of effluent disposal and groundwater impact related to the development.
The case itself involves: Rainbow Shores, Gympie Regional Council, the
Department of Environment and Resource Management, J Lawler, Citizens Helping Inskip Peninsula, M Lawler, R & S Ruescher and E Devereux, Fraser Island Defenders Organisation (FIDO), Rainbow Beach Commerce and Tourism Association, Greg Wood, Fiona Hawthorne, Vivian Griffin, National Parks Association of Queensland, Cooloola Coastcare and the Department of Main Roads. FIDO has since withdrawn from the trial as a respondent. (Source: Citizens Helping Inskip Peninsula website).
The State Government determined in 1983 that the land north of Pacific Boulevard should be developed to meet the growing population and tourism needs of the region and subsequently issued a development lease. The Developer paid for a lease to develop the land. Under the terms of the lease the lessee must instigate development of the land. Once certain conditions have been met and development approvals received, the land will be developed. The development of the Rainbow Shores Stage 1 has now reached a point where it is appropriate to get the approvals for Stage 2 to allow for a well- planned overall development.
Economically, we believe that Rainbow Shores Stage 2 will cater for the increasing demand for residential land in South East Queensland. The development will also provide extra accommodation for visitors and help develop a healthy local tourism industry. These new commercial opportunities will create a range of employment in the community. A growing population increases the rates base of a local council. This extra funding can then be used by council to deliver improved community services. On a social level, more jobs will create greater wealth and diversity in the community with an increased range of social interaction opportunities.
There has been some misinformation disseminated relating to the development and some of those ‘urban myths’ are discussed below:
1. Camping at Inskip Point will be reduced/detrimentally effected by Stage 2 – camping has never been allowed in Rainbow Shores and the proposed development will have no impact on the availability on campgrounds at Inskip.
2. The area encompassed by the proposed development is purported to be pristine and of ‘World Heritage quality’ - in actual fact, there is very little evidence of native flora and fauna endemic to the site. Scrub turkeys and brumbies are prolific and the area itself is mostly regrowth with extensive sand mining having taken place less than 40 years ago.
3. The site is low-lying and will be prone to inundation by sea water from storm surges etc. - The site is protected by a 145m beach protection buffer. The storm water and flooding provisions in Stage 2 are identical to the ones in Stage 1. The high permeability of the sand ensures that water will drain, even in periods of high rainfall.
4. The ecology of the site will be detrimentally impacted by any development – based on the precedence that the developer has set through Stage 1 of Rainbow Shores it would appear that environmental impacts are minimal. The developer has incorporated “green fingers” into the housing subdivision and wildlife such as green tree frogs, bandicoots, possums, native birds and snakes etc are prolific within close proximity to existing homes.
It would be fair to say that the Developer has demonstrated a capacity to produce an ecologically sustainable development – based on the example provided by Rainbow Shores Stage I. No one wants to see unsustainable development and ultimately, any decision by the Planning and Environment Court will be welcomed even if all we have is certainty about the future of our town in relation to growth and expansion (and in some cases, the medium to long-term viability of local businesses).
As has been previously pointed out by those opposed to Rainbow Shores Stage II, areas west/south-west of Rainbow Beach (beyond Bombala Crescent and Tingira Close are subject to Native Title issues and would take a lot of time and money to process (ultimately costing Ratepayers and Taxpayers – ie. Us. Money).
Many local residents and property owners have invested (individually and collectively) millions of dollars in this town over the years and it would be a shame to see a lot of that hard work and commitment go to waste through the loss of a controversial case which is mostly contested by people who neither work, live or own property in Rainbow Beach.
It would also be a great loss to the community to see the future of Rainbow Beach stifled by lack of growth and expansion opportunities, denying many people the chance to live, invest or visit here and enjoy the beautiful natural surroundings.
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