Logan Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :

Wally David
Thesmartmoney.com.au
2.5.15

The short of it…

•  A granny flat can be a win-win scenario for a parent and their adult child.
  
•  A granny flat interest is where you exchange assets or money for the right to live in someone else’s property (generally your children or grandchildren’s property) for as long as you live.
  
•  Centrelink will allow you to pay or transfer a certain amount of money for your granny flat, without affecting your pension.
  
•  It is vital you have a formal agreement drawn up to ensure that everything is documented.
  

The long of it… 
If you’re contemplating the idea of downsizing your home, you could consider the option of a granny flat.

It could potentially be a win-win scenario. Think about it…living nearby family in your latter years in a safe, secure environment, providing you the ability to stay at home for longer and perhaps avoiding or delaying the need for a retirement village or nursing home. It’s also likely to be a cheaper option than another home, unit or retirement village so you may be able to pocket some change from the exercise to use for other purposes.

On the flip side, the person you move in with (presumably your child or grandchild) gets a lump sum to construct or make modifications to their home for your living quarters. This will eventually add value to their home. Alternatively, if they already have the space it could mean a sum of money to reduce or pay off their mortgage.

What is a granny flat?
Traditionally, a granny flat has been a part of a house that provides self-contained accommodation for an elderly relative.

From Centrelink’s point of view, a granny flat interest is where you exchange assets or money for a right to live in someone else’s property for as long as you live. Commonly this will be in the home of one of your children or grandchildren, though not always the case.

An alternative is to transfer the ownership of your existing home to one of your children but retain a right to live there for the remainder of your years.

A granny flat must be part of any private residence and cannot be owned by you or your partner.

Granny flats and Centrelink – How does a granny flat affect your pension?
Centrelink will allow you to pay or transfer up to a certain amount of money for your granny flat, without affecting your pension entitlements. This is known as the reasonableness test amount.

The reasonableness test amount is based on the following formula:

Combined annual Age Pension rate for a couple MULTIPLIED BY a conversion factor

Sounds complicated? Bear with me…

The conversation factor is based on your age. You can click here to find out the current conversion factor for your age. If you’re a couple the age of the younger partner is used.

For example, Charles (who turns 84 next birthday) and Edna (who turns 77 next birthday) purchased a granny flat right by paying $350,000 from the sale of their home to their son.

The reasonableness test amount for Charles and Edna will be $387,507, being $33,035.60 x 11.73 (the age related factor based on Edna’s age).

Charles and Edna paid $350,000 for the granny flat which is less than the reasonable test amount of $387,507. Therefore this $350,000 will not be assessed against their pension and they will continue to be treated as homeowners by Centrelink.

What happens if you pay more than the reasonableness test amount? 
You can pay more than the reasonableness amount for your granny flat interest, but any extra will continue to be assessed against your pension for a period of five years. This works in a similar way to the gifting rules with Centrelink (click here for more details). Simply, it’s Centrelink way of covering themselves by preventing people from giving away all their money to obtain more pension!

Are you still assessed as a homeowner? 
It depends on how much you pay for your granny flat interest. Currently, if you pay less than $142,500 for your granny flat interest you will be assessed as non-homeowner by Centrelink. This interest will be assessed as an asset, though you will have access to the higher asset limit for a non-homeowner. You may also qualify for rent assistance if you pay rent.

If you pay more than the $142,500, you are assessed as a homeowner by Centrelink. So in the earlier example, Charles and Edna above would be considered homeowners, hence, the $350,000 they paid for their granny flat isn’t assessed as an asset by Centrelink.

This $142,500 amount is what’s known as the ‘extra allowable amount’. You can calculate this by working out the difference between the homeowner and non-homeowner asset limits.

What if the property needs to be sold? 
You need to be careful as your interest cannot be revoked simply because the owner wishes to sell the property. They have three options available:

1.   sell the property with your granny flat interest as a condition of sale
2.   transfer your granny flat interest to another property, or
3.   have the owner of the granny flat compensate you financially for losing your granny flat interest.

You should contact Centrelink first to double-check if any of these options would reduce your payment.

A granny flat can be a win-win scenario for all parties if structured correctly. It is vital you get some advice and have a formal agreement drawn up to ensure that everything is documented. This will protect all stakeholders and prevent any disputes down the track.

Extract from Property Observer – Logan  & Ipswich in the Headlines Again !

Brought to you by Logan Granny Flats, your local Granny Flat Experts …

Property Observer
Jennifer Duke
3 November 2014

The most recent Real Estate Institute of Queensland (REIQ) statistics show that rental markets remain tight, with south-east Queensland’s Logan and Ipswich becoming strong rental hotspots for investors.

REIQ CEO, Antonia Mercorella, said that the latest Residential Rental Survey, conducted at the end of September, found that just four of Queensland’s 16 major regions recorded significant changes in vacancy rates.

She noted that this is evidence of a two-tier residential rental market across the state.

“Logan and Ipswich are emerging as the south-east’s rental hotspots as tenants move further afield from inner-Brisbane in search of more affordable rents,” Mercorella said.

“For the rent you’d pay for a three-bedroom house in Brisbane, you can get a four bedroom house in Brisbane’s outlying areas for up to $65 less a week.”

She noted that, for this reason, Logan and Ipswich are now very tight rental markets with the lowest vacancy rates in the Greater Brisbane region.

By the close of September, Brisbane City LGA recorded a 2.3% vacancy rate, relatively stable since the end of June.

“Brisbane’s middle to outer suburbs – those 5-to-20 kilometres from the CBD - recorded a slight easing in vacancy levels, up 0.2% to 2% at the end of September,” she said.

“The city’s inner suburbs, on the other hand, recorded a vacancy level of 2.9%, down from 3.4% at the end of June.”

The Residential Tenancy Authority’s records of median weekly rents for the September quarter also noted relatively steady rents across the LGA, with greater Brisbane returning to a vacancy rate seen 12 months ago – 1.7%.

“Vacancy levels in the Moreton Bay and Redland City council areas remained relatively steady over the three months to September, with both recording 1.8%,” she said.

“While not quite as tight as Logan and Ipswich, strong investor activity and tenant demand are setting the scene for competitive rental markets in both LGAs.”

Logan City’s vacancy rate currently sits at 1.5%, with Ipswich City at 1.6%, both down 1.4%.

Picture courtesy of Wikimedia Commons/Clarebear/ CC BY-SA 3.0.

                                                                                * * * * * * * * * * *
Great news for Logan !  We have several granny flat projects on the go at the moment, and the rental inquiry has been nothing short of fantastic.  There is certainly a good demand for these new builds …

Logan Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :

Property Observer
Terry Ryder
9 FEBRUARY 2015

Domain’s most recent price data had Brisbane as the number two capital city on median price growth in 2014 (behind, obviously, Sydney).

It found Brisbane’s price growth has risen to 6.1%, providing another piece of evidence that Brisbane and South East Queensland is the nation’s major rising market.

That in itself is not startling news, as many property analysts and commentators, including me, have been advocating Brisbane as a nation-leading growth centre for 2015.

On 1 December I wrote on Property Observer:

“There’s a pretty good argument that the hottest property precinct in Australia right now is South East Queensland.

“Brisbane, the Gold Coast, the Sunshine Coast ... All three have hot markets. The research conducted by Hotspotting for the latest edition of the Price Predictor Index revealed 254 suburbs across South East Queensland with rising sales activity. To put that in perspective, the Sydney metropolitan area has 106 growth suburbs.”

So that’s a good starting point. But South East Queensland is a big chunk of territory. As I pointed out on 1 December: “Together they comprise a vast metropolitan area - ongoing urban growth means these three big centres have merged into one big conurbation which starts at the NSW border and extends 250 kilometres north to Noosa.”

So where to place a more focused span of attention? There are myriad options but one that I particularly fancy is the unheralded (indeed often maligned) municipality of Logan City.

The local council sees it as a strategic “city between two cities” because Logan bridges the gap between Brisbane City and Gold Coast City.

It’s a municipality of 60 mostly affordable suburbs and collectively they are a nice fit for my core formula of affordability + infrastructure + jobs = price growth.

It certainly qualifies on the affordability score. It has numerous suburbs with median house prices below $300,000 and many others in the low-to-mid $300,000s. That affordability attracts a lot of people and its population is tipped to grow from 300,000 to 500,000 over the next 20 years.

An area needs to offer more than cheap housing to qualify as a hotspot and some have unkindly renamed the area Bogan City.

But Logan offers plenty in the way of infrastructure, services and amenities. Logan City is a 35 minute drive from the Brisbane CBD and the Gold coast via the Pacific Motorway - and is also well serviced by buses and trains on the Gold Coast and Beenleigh lines.

The area is especially strong on retail facilities. The Logan Hyperdome is among the largest shopping centres in Australia while furniture and homewares giant Ikea has a large outlet in Springwood. The Logan Mega Centre has 28 retail stores which mostly offer household and furniture outlets, but also camping and sporting goods.

There are plenty of schools throughout the region and there are also an unusually high number of golf courses.

Jobs nodes include Teys Australia, the second largest meat processor and exporter in Australia, based in Beenleigh. Teys, which employs 800 people, was inducted into the Queensland Business Leaders Hall of Fame in December 2014. Another landmark is the Beenleigh Rum Distillery which began operations in 1884.

Logan is also not far to the Gold Coast theme park precinct, which includes Dreamworld and Movieworld.

Investors like Logan City because, in addition to cheap prices and solid growth prospects, it has strong rental yields. Most suburbs have median house yields of 5.5% and above, with several between 6% and 6.5%. The median yield for units in Beenleigh, according to Domain, is 7.1%.

Most of the Logan City postcodes have vacancy rates below 2%, according to SQM Research.

In the past 12 months, a number of the suburbs of Logan City have recorded growth in median house prices between 8% and 12%.

Developers are increasingly targeting this area with large-scale projects, including a $600 million retirement village, a $550 million tourism village, a $200 million residential estate and the new Alma Park Zoo, which is being relocated from the north of Brisbane.

A number of the area’s icons – including the Logan Hyperdome shopping centre, the Beenleigh Rum Distillery and McNevin’s Motel Loganholme – are undertaking expansions.

Logan Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :

The humble granny flat has come a long way from its days as a quick garage or shed conversion.  

These days it’s not uncommon to find granny flats so lavishly built they could pass as a standard home.

In the last five years, their popularity has skyrocketed as homeowners capitalise on their properties for investment or accommodating family.

NSW Department of Planning and Environment data shows that 4818 new granny flats were built last year, nearly double the 2867 built the previous year and three times more than the 1511 built in 2010.

Logan Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :

Author Unknown
theurbandeveloper.com
9.3.15

The shopping precinct at Beenleigh, between Brisbane and the Gold Coast in Queensland, is about to receive a major facelift.

Melbourne-based developer Liuzzi Property Group is behind the upgrade, which incorporates 22 new specialty shops and six food outlets.

Director Alfonzo Liuzzi said the project would substantially improve the amenity and the look and feel of the area.

“The conclusion of this project will not only give Beenleigh an ultra-modern new centre, but also a new heart,” Mr Liuzzi told Quest Newspapers.

The changes will include the addition of a medical centre on the first floor and an upgrade and extension of the existing Coles supermarket. 

Carparking spaces will be reduced from 414 to 377 but awnings will be provided along Main St to protect visitors to the centre from the weather.

The existing Red Rooster at the southern end of the site will remain and a community gallery space on the ground level at the corner of Main and Bellew streets will provide an opportunity for local artists to display their work.

Mr Liuzzi said construction would start in March and last around about a year. 

Coles Supermarket and most ­existing retailers will continue to trade during the estimated 12-month construction period.

Plans for the redevelopment are on display in the Mall.

Simon Pressley
11.1.15

GUEST OBSERVATION

Located between the two large urban footprints of Brisbane and Gold Coast, property investors are often attracted to Logan’s low property entry price and higher rental yields. 

Demand for accommodation in Logan has been high based on its average annual population growth rate of 2.3% over the last decade - superior to the Australian average of 1.7%. This trend appears to be holding firm.
Other than a spike in building approvals in 2010-11, Logan’s housing supply has been consistent with population demand.

Our research confirms that locations where developers are concentrating most on future supply include Jimboomba, Loganlea, Browns Plains, Waterford, and Beenleigh.

What Logan lacks most is sufficient local jobs. An unemployment rate of 6.4% is significantly above Brisbane’s 5.1%. According to Census data, of the 300,667 population 123,619 are employed although only 72,745 of these jobs are within Logan themselves.

The region’s biggest employment nodes are Springwood and Browns Plains and both catchments battle significant traffic congestion.

A largely blue-collar demographic, Logan’s biggest industries are:

                         Manufacturing ($4.9 billion output per annum),
                         Rental, hiring and real estate services ($2.4 billion),
                         Construction ($2.3 billion),
                         Retail ($1.1 billion), and
                         Wholesale trade ($1.1 billion)

Transport and logistics, food manufacturing, and health care have been described as ‘emerging industries’ although there is very little tangible progress.

While the local government has been gallant in trying to improve its reputation with a ‘City Of Choice’ campaign, it still has a high rate of crime and a distinct lack of attractions.

With the supply-demand equilibrium expected to continue, I believe that Logan will to continue to performer steadily although better investing can be found in select pockets of Brisbane.

Logan Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :

Courier Mail Real Estate section
 7.3.15
Author - unknown

Years after moving out of home, parents and children are moving back together as families embrace multi-generational living to save on costs. Modular homes and granny flats are in strong demand as buyers chase attractive housing options that allow them to share housing costs with other members of the family.

Dayboro resident Alex Guthrie, who lived in a one-bedroom house on the same block as daughter Lyndsey Baigent, said the idea of moving back with his family had seemed strange at first.

“It wasn’t an easy decision to make because you don’t want to live in each other’s pockets because that friendship can disappear very quickly,” he said.

“In the end it worked out well and it feels like we’re just really good neighbours. You still have your independence, but you’re still there for your family.”

 Mr Guthrie (pictured above with Lyndsey) said multi-generational living made strong financial sense.

“I was originally sharing the ownership of a unit and we realised that when I sold my share it would have been difficult for me to buy another property by myself,” he said.

“My daughter and her husband had just bought an acreage and they suggested it would be an ideal opportunity to live on the land and build my own smaller house.

“We shopped around a fair but and found these modular homes that were of a great quality and that were flexible to catering to the needs we specifically had.”

Hok Modular Homes chief executive Dean Hoek said an ageing population and rising prices had created a push for home that could accommodate more family members.

“Modular homes can be a win-win for families with young children caring for elderly parents,” he said.

“Retirees can live in their own new modular house and their daughter or son’s family can live in the family home.

“Most importantly, you have plenty of flexibility with what you can do and there are designs that suit families of any shape and size.

“Granny flats are becoming increasingly popular with retirees, renovators and young buyers all viewing them as another tool for getting into the housing market.”

March 10, 2015 – 5:30pm
By Kristian Silva

Big Brother's eye will be sharpest over Logan, with the council unveiling a $1.3 million camera room with state-of-the-art technology.

Security officers will have access to about 310 cameras across the city, stationed in malls, train stations, bus stops, parks and other thoroughfares.

All this will be managed through the latest version of Teleste, a security system used in cities including Paris and Stockholm.

Logan Mayor Pam Parker described the city's previous security monitoring setup as "archaic", and believes the new technology will help cut crime.

AAP
March 6,  2015, 7:55pm

Logan Mayor Pam Parker has announced she won’t run at next year’s council election.

It’s a decision she hasn’t taken lightly, having served seven years in the top job for Logan City Council following 11 years as a divisional councillor.

‘I do have remorse in making this announcement,’ Ms Parker told a luncheon on Friday.

‘However, after the next local government elections in March 2016, it will be time for me to… begin the next chapter of life.’

Ms Parker was first elected as a divisional councillor in 1997.

She went on to contest the 2008 mayoral race, grabbing victory with 72 per cent of the two-candidate preferred vote.

While she endured a ‘toxic political environment’ in her first term, Cr Parker said she was proud to have had the opportunity to promote the southeast Queensland city wedged between Brisbane and the Gold Coast.

It’s a mission she says she’ll continue in her remaining 12 months as mayor.

‘Over the next year I am going to passionately continue letting the world know why Logan is a city of opportunity for investors, business and residents,’ Cr Parker pledged.

Brisbane Lord Mayor Graham Quirk and Gold Coast Mayor Tom Tate both paid tribute to Ms Parker at the Council of Mayors South East Queensland meeting on Friday.

‘Pam Parker has been an absolute advocate for Logan,’ Mr Quirk said.

‘She has given that community a real sense of pride in itself.’

Mr Tate said he would miss working with his northern neighbour.

‘I love Pam,’ he said.

Logan Granny Flats, the largest builder of granny flats in SE Queensland, brings to you another great snippet - something that we have been saying for the last 12 months or so ...

Where to buy your next investment property in Australia ?  Why here of course, SE Queensland - Logan area of course, not that we're partial or biased !

So read what the experts are saying, not just us :

Margie Baldock
PSD Magazine
11.6.15

Last month I explained why understanding the property cycle is vital for property developers. Although for investors it’s about “time in” the market (to allow compounding of returns), for developers property profits are all about “timing”.

It’s much harder to time the market than passively invest for the long haul, but developers who live and breathe the property market over time develop an innate feel for market timing.

Every now and then developers have the joyful experience of being in the right place at the right time, meaning the clear start of a new market growth cycle.

The southeast Queensland market is presenting that exact experience. It’s that once-in-a-cycle moment that comes around every seven to 10 years where confidence returns to a market and buyers begin to line up with gusto.

Numerous experts – who actually understand the property cycle – and groups like CoreLogic RP Data are all singing the same tune. Brisbane and the Gold Coast represent the best value property markets in Australia right now.

Recently John McGrath, who owns 64 real estate agencies nationally, reportedly said: “Anywhere in Queensland will do well but I’d be hard pushed to find anywhere better to invest than the southeast of Queensland in the next three to five years for capital growth.” And frankly I couldn’t agree more.

John pointed out the astonishingly contrasting value for money that investors and homeowners can get in SEQ versus Sydney – $700,000 will buy you a one-bedroom unit in Sydney versus a canal-facing family home on the Gold Coast. This translates into higher discretionary income for those living in SEQ and a better quality of life. And as employment prospects and general confidence improve in the SEQ region, the room for capital growth as these affordable segments enter their growth phase could be substantial.

While Sydney has jumped almost 40 per cent in a few short years, SEQ has just started its recovery and now appears set to have its growth phase, apparently already under way.

What’s positive about the SEQ story is that as regulators (APRA) begin to tighten lending criteria to cool the Sydney boom, this will have the positive effect of locking speculators out of the SEQ growth phase.

This means that only genuine investors with capital or decent incomes will be able to secure property going forward. This is a bit unfair to those wannabes who can recognise the chance to make quick equity by taking a chance on the SEQ fundamentals, as they won’t be able to get funding. However, for developers, we’re far better off selling to solid investors as they can settle every time and we don’t run the risk of selling to buyers who have great intentions but simply can’t stump up come settlement day.

The tightening of lending criteria will mean that the boom phase in SEQ will be slower but more stable and SEQ may avoid a bust at the end of this current strong growth phase also. So, this is good news for developers and investors alike.