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The Mercury Real Estate Guide : January 7th 2010
MERCURY Thursday, January 7, 2010 --- 67 RUBBLE: The Tennyson property. High rollers spend up ONE is a millionaire's mansion in Brisbane that apparently wasn't even worth renovating, ending up in a pile of rubble. The other is one of Queensland's most expensive and exclusive homes that has gone on the market at Buderim on the Sunshine Coast after its American computer- whiz owner decided to call it quits after years of construction controversy. Together, they are a testament to the booming elite property market in Queensland and the appeal of prime locations. At Tennyson, a millionaire's sprawling mansion --- Tuscan style, with a hidden grotto and marble finishes --- once owned by businessman Ross Palmer, of Palmer Tube Mills, has fallen victim to today's disposable society and didn't even make the grade as a renovator's delight. Instead the property, complete with opulent master suite, has been demolished to make way for a new mega- mansion on one of the city's most elite addresses. Now, 1 King Arthur Tce is a fenced-off building site. It is understood the new owners, who according to RPData records paid $6.8 million for the property, will spend another several million dollars building their own dream home on the site. But realtors say there is no chance of overcapitalising on the riverfront block. At Buderim, on the Sunshine Coast, one of the state's most expensive homes has gone on the market for the first time after its American owner decided to walk away from the unfinished mansion. Melissa Ketchell and Glenis Green Financial signs point to a brighter future FRESH IDEAS: Financial experts share great investment tips for keen learners. As we continue to recover from the global financial crisis, Anthony Keane asks experts for tips for the year ahead. THERE is a variety of views about what is in store for investors. Most forecasters believe the recovery in the Australian economy and share market will continue, but a vocal minority is warning that we haven't seen the worst of the global financial crisis. Prescott Securities financial adviser David Middleton says there is a chance of a relapse. ''The banking system in the developed world is seriously damaged and governments are heavily in debt. The process of repair will inevitably be arduous'', he says. ''While share prices have recovered somewhat from the drastic falls of 2008 and early 2009, they still look cheap compared to current company profitability.'' Here financial experts offer their top investment ideas. 1. Controlling cash flow is vital Barker Wealth Management senior adviser David Kayser says cash flow is key to investing. ''Ensure you can manage your debt on your income, and aren't reliant on growth to pay the interest bill''. Middleton says people living on their investment assets should be taking advantage of the current market strength to put aside funds in cash and term deposits. 2. Buy shares in quality companies ''The share market has concentrated on turnaround stories and ignored terrific companies that are often very expensive to buy,'' Mr Middleton says. ''These are businesses that will maintain some level of profitability, even during recessions.'' Woolworths, Ramsay Healthcare and Sonic Healthcare are examples. Lincoln Indicators chief executive Elio D'Amato says investors should always aim to hold great businesses. 3. Mining is a money magnet ''You can't deny that the materials sector continues to be a shining light for our nation and the share market,'' Mr D'Amato says. ''If you have faith in this nation you have got to have a BHP in the portfolio somewhere.'' Mr D'Amato says investors can also take a look at smaller resources companies that offer growth potential and adds the uranium sector has a bright future. 4. Low risk doesn't mean low income With interest rates on the rise, there is a growing number of options for lower-risk investment income. Mr Middleton says people should take a good look at the options available. ''Longer term deposits at reasonably high rates may well be attractive at the time,'' he says. ''There are also opportunities in listed income securities offered by banks and other businesses with excellent credit ratings.'' Mr Kayser says these corporate securities, issued by blue chip companies, including the major banks, now offer a yield of more than 7 per cent ''and do so with significantly less risk than investing in several investment opportunities''. 5. Investing is a risky business Risk is necessary if you want good investment returns, but Mr Kayser says investors should only take on a level of risk that they need to not too much. ''Ensure you have a fall-back position whether that is a cash reserve or insurance to protect you if the worst happens,'' he says. 6. Too much debt can be dangerous Investment debt is good debt compared with the bad debt of personal loans and credit cards but too much of it can lead to disaster, as many investors discovered in 2008 when hit with margin calls. Mr Kayser says it is important not to take on too much debt, particularly with rising interest rates. 7. Hunt for a property bargain The chief executive of Adelaide- based property and finance group Investa Solutions, Ian Lloyd, says this year will be a good time to buy for property investors ahead of an expected growth period in the market in 2011. ''There's a lot more negotiation because major banks have tightened up so much, so developers are ready to crack a deal.'' 8. Resource-rich regional areas should prosper Mr Lloyd says the strength of Australia's mining sector will translate to good gains for property investors in areas near major resources projects. Think about places like Mackay in Queensland, Geraldton in Western Australia and Port Lincoln in South Australia. Mr Lloyd says as well as capital growth, high rents paid by mining workers can help with cash flow. 9. Ignore super at your peril People may be nervous about pumping money into superannuation while there are reviews under way, but Mr Kayser says super has many benefits, especially on the tax front. ''You can invest in virtually any asset you like through super but you are paying a lower tax rate than you would if you held it in your own name,'' he says. The catch is you can't get it out until you are 60, but this is not a big problem for most people. 10. Don't chase last year's winners Mr D'Amato says investors should not blindly buy the investments that performed best last year. ''Usually if the horse has bolted, it has done its race,'' he says. ''Don't be lured by the lights.'' FINANCE AND CONVEYANCING t t P x 4 Em il cdick@ - c .c m. W ick b . - c .c m. 1106b T r i v i g 168 i s Str t b rt 7000 si i : 6224 4166 E i : ris.p rri @si w f. . bsit : www.si w f. . 6224 4133 ris rri is p ri t , S r r ss A g rriss f r r v i g s 2057724-LS
December 31st 2009
January 14th 2010