WA’s population is set to boom. The City of Stirling’s plans fly in the face of the reality. Sign our petition today!

WA Business news stated yesterday “Perth’s population is set to overtake that of Brisbane over the next 15 years, with experts forecasting the city will experience the highest population growth of all capital cities over the next 50 years .

Western Australia’s population is projected to almost triple in size by 2061, on medium growth assumptions, from 2.4 million people in 2012 to 6. 4million. The Australian Bureau of Statistics released its predictions yesterday.”

With these announcements, we would wonder why the City of Stirling would propose a planning change to ban all multiple dwellings (apartments) in low rise developments in areas zoned less than R60.Currently low rise apartments are only prohibited in areas zoned at R35 and lower. This goes against the state government efforts to boost housing affordability through urban infill. Help us stop this and sign our petition at http://www.stopstirling.com.au/

 

http://www.businessnews.com.au/article/Perth-tipped-to-be-fastest-growing-city

Property owners face significant losses if proposed City of Stirling planning amendments go ahead

 

Property owners face potential major financial losses under proposed amendments to the City of Stirling town planning scheme warns property investment consultancy, Momentum Wealth.

 Momentum Wealth managing director Damian Collins says the proposed planning amendment will prohibit apartment type dwellings in any areas zoned less than R60. Currently this is only prohibited in areas zoned R35 and below.

 This will have significant effects on the development potential of residential blocks in many areas of the city boundaries. Suburbs that may be affected include, Balga, Nollamara, Westminster, Joondanna, Innaloo, Yokine, Balcatta, Doubleview, Scarborough and Tuart Hill.

 

Mr Collins says if approved, the down coding will mean that sites that may accommodate six or eight apartments may now only be suitable for two or three villas or townhouses.

 He says Momentum Wealth is opposed to the City of Stirling proposed Scheme Amendment and is advising land owners to act now to preserve the development potential and value of their assets.

“While different styles of development are suitable for different suburbs, a blanket banning of apartments at zonings less than R60 is a blunt and ineffective way to run a planning scheme” says Mr Collins. “The State Government made changes to the residential planning codes to allow for this type of development in order to cater for a change in household sizes and to help slow down the never ending sprawl of the city. Every local council in Perth will have to accept some higher density and diversity of housing and the City of Stirling is no exception.”

 

Mr Collins says property owners are encouraged to contact Momentum Wealth’s planning and development team for advice on the types of things they can do.

 

“It is critical for property owners to be aware of the quite significant lost financial potential that these proposed changes will have for them,” Mr Collins says.

 

“A lot of people with R 40 zoned sites are likely unaware that they may not be able to develop the property to its full potential in the future.
“We are encouraging these property owners to speak to our planning and developments team who can lodge a development application for these sites now,” Mr Collins says.

 

“If the proposal is granted consent to advertise by the Minister for Planning, the City of Stirling can consider the proposed change in any development application they receive.  By lodging and having a development application considered before the proposed change is granted consent to advertise, this proposed change will not affect the development potential. If the application is approved, property owners will have two years to commence development of their site, even if zoning changes go ahead in the interim.”   

 

Mr Collins set up Momentum Wealth in 2006 after recognising a need to provide time-poor investors with a trusted and qualified source of advice.

 

Mr Collins is a buyer’s agent, a qualified chartered accountant who is a board member of the Property Investment Professionals of Australia (PIPA) as well as a Councillor of the Real Estate Institute of Western Australia (REIWA).   

 

Media contact: Evelyn Duffy 94476532 or 0439981505

 

 

Momentum Wealth won the best dressed at our Melbourne Cup lunch at Ascot yesterday !!

This is a great article that shows the trends that are taking place in Perth 
http://www.heraldsun.com.au/news/national/property-report-landgate-figures-reveal-perth-suburb-values/story-fnii5thm-1226751538073

EXCLUSIVE: Are off-the-plan properties good investments?

 http://www.propertyobserver.com.au/developments/exclusive-are-off-the-plan-properties-good-investments/2013103166079/Page-2?utm_campaign=7a16ce0b3e-June_21_1_29_2013&utm_medium=email&utm_source=Property%2BObserver%2BList&utm_term=0_a523fbfccb-7a16ce0b3e-245270269

In this months Australian Property Investor Magazine don't miss our advise on the top  "130 Suburbs with Great Profit Potential " for Western Australia.  Some of the key Perth property investment areas that are highlighted are Mosman Park, Cottesloe, Claremont, Nedlands and Dalkeith. The article also points out the gap between home and apartments in these areas. Read more below

http://www.momentumwealth.com.au/sites/momentumwealthcomau/assets/public/Media/2011/2012/2013/API,%20WA%20The%20Cream%20of%20the%20Crop,%20November%202013.pdf

Recently I looking at research to find out what are the trends in retirement in Australia. I must say I was quite shocked at what I found in the in the www.abs.gov.au in the " Retirement and Retirement Intentions, Australia, July 2010 to June 2011.

For men, the most commonly reported main source of personal income at retirement was a “ government pension/ allowance ( 53%), followed by superannuation/ annuity/ allocated pension ( 27%).

 

For women, the most commonly reported main source of personal income at retirement was government pension/ allowance ( 39%) with a similar proportion of women also reporting no personal income ( 39%). Just under half ( 44% ) of women reported " partners income " as their main source of funds for meeting living costs at retirement.

 

This really emphasises the fact that the sooner we get our finances in order the better!!

If you are a landlord often you find that the rules and regulations around Property Management are changing regularly. We have put together a eBook that outlines everything you need to know. Down load it here today. http://www.propertyperth.com/ 

First Homes grant in Western Australia

The WA First Home owners Grant (FHOG) was amended last month with the grant for established homes decreasing from $7,000 to $3,000. For new builds the grant has increased from $7,000 to $10,000.

WA Treasurer Troy Buswell said, “This key initiative will continue to support first home buyers, help to increase housing supply and, very importantly, help create jobs in the housing sector in WA,”

Western Australia, South Australia and Tasmania are the only remaining States that still provide a grant to purchasers of established homes.

It seems like our predictions are coming true see article below
http://www.news.com.au/realestate/news/perth-property-market-on-its-way-to-peak/story-fndbaln9-1226709048729

Many of our Buyers agents are attending lots of home opens at present looking for the perfect deal for our clients and finding that the homes are packed with prospective buyers. The Perth housing market is is heating up at present !!

I found this intertsing article today about women in Perth .. see attached

http://www.news.com.au/realestate/westpac-home-ownership-report-finds-73-per-cent-of-gen-y-women-focused-on-paying-off-loans-early/story-fncq3era-1226716459337

This month we would like to congratulate Ray Chua for winning the REIWA, Buyer Agent of the year for 2013, which is the second year in a row and an incredible achievement, along with Clare Christiansen who won  REIWA award for Exceptional Service in Property Management

http://www.spionline.com.au/blog/latest-blogs/12185-whats-really-happening-in-perth

See update on the Perth Property market within Smart Property magazine

If you are looking for more advise when purchasing an investment property in Perth please come along to our seminar " How to Build and Massive Property Portfolio : on the 12th November, 2013 from 7pm to 9.30pm. Bookings can be made at this link http://www.momentumwealth.com.au/calendar/month/2013-11-01.aspx

See article we sent out today in our newsletter that outlines the how you should structure your investments.
http://www.momentumwealth.com.au/newsletter/previous-newsletters/property-wealth-news-september-2013/types-of-investment-structures.aspx

I came across this article today that is a must read if you are a landlord.
http://www.rentwest.com.au/blog/

Spring and a new government is all positive for Perth Property market.

The change in government, low interest rates means that many buyers are out in force looking for new investment properties. Make sure you get the best property that is suited to your investment property portfolio and contact Momentum Wealth at https://www.google.com.au/#q=momentum+wealth

To read more about spring trends go to

http://www.propertyobserver.com.au/western-australia/a-perfect-spring-storm-is-brewing-for-perth-s-real-estate-market-geoff-baldwin/2013090464787

Do you know that we also manage properties !!

http://www.realestate.com.au/rent/by-momeas/list-1

Update in local property news

To read more about trends in the property investment market in Perth today go to http://www.propertyobserver.com.au/western-australia/perth-property-investors-told-to-batten-down-the-hatches/2013090364766 or to http://www.momentumwealth.com.au/

Check out our new suburb reports in Your Investment Property magazine.

Property Investment Perth

 

http://www.yourinvestmentpropertymag.com.au/top-suburbs/wa-6016-mount-hawthorn.aspx

http://www.yourinvestmentpropertymag.com.au/top-suburbs/wa-6103-rivervale.aspx

http://www.yourinvestmentpropertymag.com.au/top-suburbs/wa-6008-shenton-park.aspx

It seems like Perth is leading the way once again with property prices rising 5%. To read more about this go to http://www.heraldsun.com.au/business/breaking-news/home-prices-up-5-in-past-12-months/story-fni0xqe4-1226708857367 and for help on buying your next property before it goes up again ring
http://www.momentumwealth.com.au/


 

Why not add a Granny flat to your property ?

 

The humble granny flat is going through a renaissance thanks in part to exciting new regulations. No longer seen as boring and strictly for seniors, granny flats are now a stylish and highly functional housing option suitable for a wide range of people. 

 

Granny flats are also a hot topic for property investors in WA, who seek to take advantage of the new laws regarding renting.

From  August, new laws in WA mean that a granny flat, or ancillary accommodation, can be rented to anyone, not just the owner’s relatives as was the case previously. Granny flats can now also be up to 70sqm in size, up from the previous 60sqm limit. 

 

Suddenly, renting a granny flat could be a viable option for anyone looking for affordable housing, including renovators seeking temporary accommodation, students, or those looking to save towards home ownership.

 

Given the lack of affordable housing in WA, ageing population and high costs associated with aged care facilities, it’s hard to imagine granny flats won’t experience a rise in popularity. 

 

But what’s the opportunity for property investors? Simply, a granny flat can boost an investor’s rental income by providing a secondary source of income. In some case, the addition of a granny flat can increase the yield of a property to over 10 percent.

 

The opportunity to obtain 2 rental incomes from 1 property without going through the cost of a subdivision is certainly appealing, especially for those who own property that is only zoned for single residential. 

 

For those thinking of building a granny flat, there are already numerous companies offering affordable construction packages. By spending around 100k you could end up with $300 in extra rent per week, which would easily cover the interest on the additional money borrowed.  I have even heard of luxury granny flats being rented out for as much as $450 a week.

 

Some property investors are already jumping on the opportunity, with the goal of having both positive cash flow and strong capital growth from the one property. But what will a granny flat do to the value of a property? It’s also difficult to determine the true value of properties with granny flats as there is not a lot of sales evidence. However, I suspect that a granny flat won’t add dollar-for-dollar in terms of what is spent.  

 

Investment buyers will certainly value the extra rental income that a granny flat provides and may be willing to pay more for it. However, owner occupiers, who make up the majority of buyers, may not see the value in a granny flat, preferring instead to have the additional outdoor space. Remember that a granny flat cannot be sold separately, only as part of the main property. So, a property with a granny flat may have a limited pool of buyers.   

 

Will the new regulations result in an oversupply of properties with granny flats? I think this is unlikely, but careful analysis still needs to be done before making the decision to build a granny flat or buy a property already containing one.  

 

If you want immediate capital gain, a granny flat might not be the best option. Often, a standard renovation or subdivision will yield better results. That said, granny flats could offer a great opportunity for those who are planning to hold a property for the long term and derive a strong rental income in the meantime.

Welcome to our new blog

Momentum Wealth is designed to help you build your wealth through the purchase of property. We specialise in property located in Western Australia