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Consider best use of property

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    Consider best use of property

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             HEN considering the sale or
             purchase of a property asset,
             sellers and buyers should initially

                                                                                                                                                                                                                                  Colour: K C M Y
    consider what the potential highest and
                                                     Residential, Mixed Residential, Rural
    best use of the property is.
                                                     Residential, City View Slopes Residential
    Highest and best use is an industry term         and Medium Density Residential. Each
    that refers to exactly what it suggests, the
                                                     precinct has different densities, height
    highest value and best possible use of a
                                                     restrictions and allowable uses.
    particular property. Sometimes this may
    not be the same as the current or most           Other precincts include industry, centres,
    obvious use and some creative thinking           rural and general.
    and careful research may be required.            ‘‘Anyone with an interest in property
    PRDnationwide Townsville research                should be familiar with the City Plan,
    manager Dean Dederer said property               which is accessible from the council
    owners should conduct some basic                 website," Mr Dederer said.
    research to assist in this determination.        ‘‘Buyers looking to make the most out of
    ‘‘The value of a property is related to its      their purchase should investigate possible
    highest and best use. The current use may        uses for their property.
    not reflect the property’s optimal value,        ‘‘For example, the highest and best use of
    therefore any potential for a use that is        an old house on a prime Mixed Residential
    higher than the current use should be            lot may be as a multi-unit development
    considered," Mr Dederer said.                    site. An old house on a large Traditional
    He said owners should investigate or ask         Residential lot may lend itself to
    their real estate agent some standard            subdivision, or an old warehouse may

    questions to help them decide on the             lend itself to a change of use into a
    highest and best use.                            commercial or residential building.
    ‘‘Asking the right questions is important.       ‘‘An option may also exist to change the
    You should really ask things like, what is       zoning of the land. This can be costly and

                                                                                                                                                                                                                                  Unit: Regn 3
    the current zoning of the land? What is          expose the owner to risk, therefore
    the predominate use of surrounding               owners should seek professional advice
    properties? What is the current supply and       from consultants including valuers, town
    demand of various property types? What           planners and property development
    are the current trends in the property           project managers," Mr Dederer said.
    market? What stage of the property cycle         ‘‘Optimising the value of a property can be
    are we currently in?"                            as simple as identifying the critical
    Under the Townsville City Council City           attributes and communicating this
    Plan, land use is determined by various          effectively to the market during a sales
    designated zones or precincts in order to        campaign, or as complicated as obtaining
    control development across the city.             development approval to change the use
    The main residential zones include               of the land. Test your agent’s knowledge
    Traditional Residential, Neighbourhood           and reap the rewards."

    Interest rate rise looms on the horizon
    THE days of historically low interest     be more relief before the pain with        to the lowest interest rates in a           forward any purchases that may have      investors but certainly the lower the
    rates could soon be over as a rebound     another rate cut tipped before             generation,’’ Ms Griffiths said.            been planned for later next year.’’      rates, the better the financial benefits
    in the economy restrains the Reserve      Christmas.                                 ‘‘Interest rates were cut eight             Mr Banning said that more home           are for most people.
    Bank’s use of the monetary scalpel.       The RBA has left interest rates            consecutive times which prompted a          buyers were starting to investigate      ‘‘It is likely that home buyers still have

    With interest rates at a 49-year low,     unchanged for the past three months        lot of people to jump into the housing                                               some time to act on any purchase
                                                                                                                                     the pros and cons of fixed-rate
                                                                                                                                                                              decisions before any rate rises come
    and middle-income earners                 after slashing them by 425 basis           market, while at the same time home         mortgages in anticipation of future      into effect.
    benefiting from recent Federal            points from October 2008 to April          owners on variable rate mortgages           rate rises.                              ‘‘For that matter it will be very

                                                                                                                                                                                                                                  REAL ESTATE
    Government stimulus programs,             2009.                                      saved thousands of dollars.                 ‘‘We would advise anybody that is        interesting to see what kind of impact
    inflation may return to the headlines     RE/MAX Excellence agents Lyn               ‘‘Nobody wants interest rates to rise       locking into a mortgage to consider      any future rate rises or decreases have
    during the coming year.                   Griffiths and Rohan Banning said they      but it is inevitable that they can’t stay                                            on the Townsville real estate market.’’
                                                                                                                                     all available options when it comes to
    An Access Economics business              expected any speculation of interest       at historical lows for much longer.         fixing interest rates or choosing a
    outlook report says interest rates will   rate rises to bring forward the            ‘‘Now that there is talk of potential       variable rate package,’’ Mr Banning
    be raised again in 2010 and 2011.         investment decisions for some buyers.      rate rises on the horizon, we expect        said. ‘‘Interest rates have different
    But economists predict there might        ‘‘Most home owners have had access         that some people will look to bring         impacts on owner-occupiers and

              Ray White’s First Home Buyers and Investors Auction

                                                                                                                                                                                                                                  Sat, Jul 25, 09
                Tuesday 04 August, 6:00pm – Southbank Convention Centre, Palmer Street
     Lot 1               60 St Albans Road, MOUNT LOUISA                                           Naomi Theodossio                        0407 573 358
     Lot 2               7 Anew Court, ALICE RIVER                                                 Chris Orr                               0413 642 584
     Lot 3               6/108 Mitchell Street, NORTH WARD                                         Danny Cody                              0404 077 102
     Lot 4               6/56 Armstrong Street, HERMIT PARK                                        Malcolm Thomson                         0400 545 664
     Lot 5               49 Goldring Street, HERMIT PARK                                           Michael Andrews                         0414 886 294
     Lot 6               5 Carmen Close, YABULU                                                    Chris Orr                               0413 642 584
     Lot 7               28 Minstrel Court, BUSHLAND BEACH                                         Simon Clayton                           0415 196 270
     Lot 8               7 Buell Court, ALICE RIVER                                                Chris Orr                               0413 642 584
     Lot 9               11 Colby Court, KELSO                                                     Michael Andrews                         0414 886 294
     Lot 10              3/66 Tenth Street, RAILWAY ESTATE                                         Kimberley Orr                           0415 038 321
     Lot 11              10 Andrew Crescent, CONDON                                                Kelly Woodroffe                         0406 996 727
                                                                                                                                                                                                                                      T’VILLE BUL

     Lot 12              5 Doncaster Way, MOUNT LOUISA                                             Dianne Rippon                           0417 003 053
     Lot 13              134 Framara Drive, KELSO                                                  Kelly Woodroffe                         0406 996 727
     Lot 14              23 Gatton Street, KIRWAN                                                  Shay Bell                               0410 436 924
     Lot 15              5/102 Cook Street, NORTH WARD                                             Kimberley Orr                           0415 038 321
     Lot 16              1006/75 The Strand, NORTH WARD                                            Danny Cody                              0404 077 102        Call the team who make Auctions Work:
     Lot 17              26 Allambie Lane, KELSO                                                   Kelly Woodroffe                         0406 996 727                   Townsville City 4781 0500
     Lot 18              150 Francis Street, WEST END                                              Julie Crisp                             0408 212 019

     Lot 19              109/75 The Strand, NORTH WARD                                             Danny Cody                              0404 077 102                      Thuringowa 4755 6100
     Lot 20              15 Rosewood Avenue, KELSO                                                 Kelly Woodroffe/Michael Andrews         0406 996 727
     Lot 21              86 Railway Avenue, RAILWAY ESTATE                                         Simon Clayton/Kimberley Orr             0415 196 270

     Lot 22              14 Alan John Street, KELSO                                                Marysel Charol/Tara Stokes              0439 983 570
     Please note: Order of sale subject to change.
                                                                                                                                         Townsville City          Thuringowa             Townsville Central
+                                                                                                                  The Townsville Bulletin - Real Estate       July 25, 2009       Page 3

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