Batemans Bay Property News
Batemans Bay Property News 2009
Batemans Bay Property News 2009
Date: Thursday, January 29, 2009
Batemans Bay Property News 2009
Lowest fixed rates;
Bank 3 years 5 years
St George Bank/BankSA 5.64% 6.44%
Westpac 5.69% 6.49%
Arab Bank Australia 5.79% 6.19%
ING Direct 5.99% 6.49%
NAB 6.09% 6.49%
Adelaide/Bendigo 6.49%
IMB 6.29%
Service One 5.75% 6.25%
Source; the sunday Telegraph
Website www.ratedetective.com.au
3rd February 2009
Australia’s four major banks have already passed on the RBA’s 1% interest rate cut to mortgage holders, raising hopes that the banks will also pass on the rate cut to business borrowers.
The RBA cut rates for the fifth consecutive time yesterday, sending the official cash rate to a 40-year low of 3.25%
Summer holidays 2008/9
88 cents a litre in Sydney?
Cheaper petrol prices stimulates local tourism. Batemans Bay businesses report a 20% increase in business over the Christmas holiday Season.
Interest Rates
3rd February 2009
Australia’s four major banks have already passed on the RBA’s 1% interest rate cut to mortgage holders, raising hopes that the banks will also pass on the rate cut to business borrowers.
The RBA cut rates for the fifth consecutive time yesterday, sending the official cash rate to a 40-year low of 3.25%
2008
We are now only back where we started. The 3 % increase in interest rates over the past 4 years (12 X .25% increases) has now been reversed.
The trigger point for investing in real estate is the term deposit rate. Once the Term Deposit rate drops to 5% and below, investors will buy investment real estate. With the recent increase in rents, decrease in property values and the reduction in mortgage rates, residential rental properties are now a viable investment again.
New Infrastructure
January 2009
The Eurobodalla Shire Council has finished construction of a $15 million pipeline from Moruya to the Deep Creek Dam near the big tourist centre of Batemans Bay.
The council's water and waste manager, Greg Searle, says all that is needed now is a few weeks of good rain to increase the flow in the Moruya River.
He says the water storage has been expanded to take the increased inflow from the new pipeline.
"We're able to transport from Buckenboura pump up to the dam only about five megalitres a day - five million litres a day," Mr Searle said.
"The Buckenboura is one of the first rivers to be depleted in a drought.
"With this pipeline we are able to pump 34 million litres into the pipeline as well as another eight million straight into our Moruya reservoir at the same time. "It's a significant improvement and ensures the shire's water supply."
2008 ~ New Businesses for the Bay
Two new businesses have opened this month in Orient Street. Print Central at the front of the CitiCentre building and a mens hair dressers has moved into the street front shop at Centre Point Blue, (next to Cafe Blue).
Also The Coffee Club has opened in the Village Centre, previously Stockland.
First Home Onwner Grant ~ Gen Y Buy
The recent increase to the first home buyers grants to $14,000 for established homes and $21,000 for new homes will bring back the first home buyer market, particularly the Generation Y buyer (20 to 30 year olds) who have not been living at home or trying to find rental accommodation.
First home buyers in NSW who qualify for the First Home Owner Grant and are buying a newly constructed home or building their first home will be eligible for an additional $3,000 payment known as the NSW New Home Buyers Supplement.
The $3,000 New Home Buyers Supplement is in addition to the $7,000 First Home Owner Grant and the Australian Government’s $14, 000 First Home Owner Boost. With the NSW Government’s New Home Buyers Supplement Scheme, first home buyers of new homes will receive maximum benefits of up to $24,000.
Both the First Home Owner Grant and the New Home Buyers Supplement are fully funded by the NSW Government. Batemans Bay will get the flow on from First Home Buyers Grant increases.
Prime Minister Rudd has just announced that the first home buyers' grant is to
double to $14,000, and then increased again to $21,000 if buyers purchase newly constructed property.
Although Batemans Bay does not have a large first home buyer market, most of the our residential purchasers do need to sell first before buying in Batemans Bay. The first home buyer grant should help stimulate turnover in the markets where our buyers come from.
Term Deposit Rates.
The decrease in Term Deposit rates will encourage the small investor/self managed superfund, back into the residential housing investment market.
When Term Deposit Rates drop below the magic 5%mark,
investors look to buy rental property.
www.commbank.com.au
New Developments
The new Batemans Bay Marina plans and public consultation commence. Ariadne expects to start construction on the 250 new wet berths, 250 dry storage berths and resort complex in early 2009. The development is expected to generate 80 new jobs. www.ariadne.com.au
A major boost for the local economy.
The final plan for the $20m Centrelink Innovation Centre have been approved in principle by the developer, the Batemans Bay Soldiers Club. The call centre is expected to generate 240 jobs in town with most being filled by local staff. The project is expected to be finished in end 2010. The increase in employment will go a long way to diminish the impact of the winter off season to Batemans Bay's economy.
Bunnings Hardware and Harvey Norman are expected to establish regional stores on the new industrial site at the Surf Beach end of the new bypass, "Bay to the Beaches".
Constrution work at the former Eurobodalla Christian School site in surfside should start by the end of the year. The $12.5 million redevelopment project will provide a combination of low-care and high-care accommodation for aged people including a 16 bed dementia facility.
Construction has commenced on a 92 Bed Residential Care Facility "The Glen" located in Correa Place Catalina. The $15 million dollar facility is being developed by local developer John Wakelin, and has been designed by local Architects Edmiston Jones. The project reinforces Batemans Bay a retirement destination.
Land Shortage?
"In 10 years you won't be able to buy land in Batemans Bay because suitable residential land between Durras and Broulee will be fully developed."
Where to Buy on the Coast?
The New Batehaven - Surf Beach Bypass (Bay to the Beaches) was offically opened today. If you turn at the Batemans Bay High School you will arrive at Lilli Pilli. Most of the road is 80kph, no more slow trips along the coast road past the bottlenecks at the Batehaven and Surf Beach shops. The by-pass is expected to increase demand for property in the Lilli Pilli and Malua Bay area.
The by-pass will half the travel time to the ocean beaches.
Why Buy in Beautiful Batemans Bay?
A recent survey by Tourism Research Australia showed that 87 % of visitors surveyed said they would recommend Batemans Bay to their friends and a massive 60% said they would return to Batemans Bay for another holiday within a year. The main expectations of visitors were "relaxation and rejuvenation" (91%) "quality time with partner/friends/family"(83%) and "opportunity to tour around and explore" (72%)
Rents increase.
Recent increases in rents, the lowest vacancy rate for rental accommodation on record, decreases in property prices and mortgage rates , there is no doubt that these factors will start to stimulate investor to return to property
Preparing to retire:
Canberra's retirees are on the move to the coast. The Canberra property market has now peaked in value, renewing Canberra retirees interest in moving to Batemans Bay. Close to family and friends, a relaxed coastal lifestyle, low cost of living and a great climate, being Batemans Bay's main attactio
Buy now before land prices increase.
Land prices are predicted to increase dramaticly due to the influx of Baby Boomer retirees from Canberra over the next 3 years.
The additional population will create a residential land shortage between Durras and Broulee. It is predicted that this 50 kms stretch of "Canberra's Coast" will be fully developed within 5 to 10 years. There is no more freehold land available, landlocked by State Forest, National Park and the ocean.
When to Buy property in Batemans Bay?
The Batemans Bay property cycle.
" Over the past 40 years, the Batemans Bay area has experienced 10-year property cycles - The peaks of the Sellers Market in Batemans Bay where 1981, 1991 and 2001; therefore 2011 will most likely be the next peak."
The best time to buy is at the bottom of the buyers market. This has previously been in 1988, 1998, therefore I it is reasonable to predict that 2008 is bottom of the current Buyers Market.
The Big Picture
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Geoff Payne AAPI AREI
PO Box 500 Batemans Bay NSW 2536
P 02 44 725000
M 0418 428398
F 02 44 725144
E geoff@geoffpayne.com.au
Geoff Payne Real Estate
Shop B2 Village Centre
Perry Street Batemans Bay NSW 2536
website www.batemansbayproperty.com.au
Geoff Payne AAPI AREI,is a property valuer, real estate agent and land economist. Geoff has been operating in the south east region of NSW and ACT for over 30 years.