the property book

Things Looking up for Things Looking up for Gold Coast PropertyGold Coast PropertyHow lifestyle is impacting on salesHow lifestyle is impacting on sales

Nerang & Upper Coomera

Why now is the time for Why now is the time for savvy buyers to investsavvy buyers to invest

TIME TO GRAB A BARGAIN TIME TO GRAB A BARGAIN INVESTMENT PROPERTY! INVESTMENT PROPERTY!

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2

Latest research from the Real Estate Institute of Queensland found sales of properties in the $350,000 to $500,000 range in Queensland fell by more than 20 per cent in the September quarter, while sales in all other price ranges remained steady.REIQ managing director Dan Molloy said it’s a great time for fi rst-home buyers or investors to pounce, with many good property deals around.“The conditions now for buying are the best they have been for some time . . . and probably will be into the early part of next year,” he said.“For investors researching the market, there’s no shortage of properties for sale.”Mr Molloy believes the Reserve Bank’s decision to leave interest rates unchanged this week and predictions there might be some time until another rate rise will give buyers some confi dence.

“Buyers can be a little bit more certain about where things are going,” he said.

“People are starting to form the view that the market is pretty much at the bottom of the cycle and we’ve seen a clear signal this week the Reserve Bank is not likely to be taking action on interest rates for some time.”Finance manager Eddie Fabian bought an investment property this month at Hawthorne on Brisbane’s southside for $457,500.The 55-year-old believes the three-bedroom, two-bathroom townhouse will be a good long-term investment, after choosing between spending money on property or shares.“I was looking around for about eight weeks and I wanted to get a place where the rent return was equal to one dollar per thousand for the purchase

price,” Mr Fabian said.“I probably paid a little more than what I wanted

to pay in the end. But the fact they have a tenant already leasing the property before settlement . . . I took that into account as well.”REIQ also found vacancy rates in some regional areas of Queensland were starting to tighten, including Bundaberg, Gladstone, Mackay and Toowoomba, which are all below 2 per cent.The shift in demand for properties has also started pushing up rents.Toowoomba recorded the highest price rise for units and townhouses during the September quarter, with median prices up 6.4 per cent to $240,000 as sales rose 5 per cent.

WITH a fl ood of residential properties on the market and banks keeping their lending criteria tight, industry experts say now is the time for savvy buyers to invest.

GREAT TIME TO GRAB A BARGAIN INVESTMENT PROPERTY

‘It’s a great time for fi rst-home buyers or investors to pounce’

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3

While much of the focus on the Gold Coast market has been on the hard-hit presti ge end, analysts claim the market is no longer all doom and gloom with middle and lower-end homes in suburbs away from the glamour strip reporti ng solid growth.

“At the peak of the market between 2005 and 2007 people treated Gold Coast property like they were trading on the stock exchange,” said Andrew Bell , CEO of Ray White Surfers Paradise.

“They expected to buy in the morning and make a killing by selling in the aft ernoon. But real estate is about buying a home -- a place to raise your kids. It’s not about

Things looking up for Gold Coast propertySensibly priced family homes with strong lifestyle features are driving the recovery of the Gold Coast property market.

Our Sales & Property Management TeamsOffi ce:NERANG UPPER COOMERA

07 55000254

Offi ce:

07 55960055nfn.com.au uppercoomera.com.auEarle Plaza, Cnr Price and White StreetsNerang Q 4211

Coomera City CentreCnr Days and Old Coach RoadsUpper Coomera Q 4209

t s not about

MICHAEL CULLENfrom Nerang$100 WINNER

speculati ng. When you buy here, you’re buying lifestyle longer term.”

Mr Bell’s comments are supported by fi gures obtained exclusively by the Gold Coast Bulleti n from RP Data that show double-digit growth for the past quarter and strong 12-month fi gures for suburbs that have att racti ve lifestyle, or entry-level benefi ts.

Tim Lawless, research director at RP Data said properti es `off the glamour strip’ and close to the M1 show growth similar to Brisbane because of

their proximity to the capital, aff ordability and lifestyle opportuniti es.

“The data shows the heartland not associated with the coastline is where the growth is on the Gold Coast,” Mr Lawless said.

“Lifestyle properti es, such as the canal estates of Sorrento and Mermaid Waters, and semi-rural acreage around Tamborine Mountain are performing well.

“People are now coming out of the woodwork to make the most of what are historically lower prices. Homes that people have aspired to own, they fi nd they can now aff ord them.”

KPMG demographer Bernard Salt said the Gold Coast had been `the whipping boy’ of the property market, but it would prove the southern doubters wrong.

“The underlying truth of the Gold Coast and the underlying reason for its existence is lifestyle and properti es off ering lifestyle value are the growth drivers,” Mr Salt said.

Areas like Mt Tamborine off ered the merger of tree change and sea change, while suburbs such as Worongary were aff ordable product for average families.

“Despite the criti cs, despite the bad PR and the sneering comments you get from southerners, the undeniable truth is that unlike any other place on the conti nent, tens of thousands of Australians move to the Gold Coast every year and they have done so for the past 30 years.”

‘Properties `off the glamour strip’ and close to the M1 show growth similar to Brisbane...’

44

Question 1:Until I am measured,I am not known.Yet how you miss me,When I have fl own!What am I?Question 2:You throw away the outside and cook the inside. Then you eat the outside and throw away the inside. What did you eat?

Question 3: What can be driven, but has no wheels, and can be sliced and remain whole?

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RBA HOLDS ON RATES Home owners have been spared another rise in mortgage repayments, with the Reserve Bank opting to keep interest rates on hold while it weighs up the economic impact of the fl oods in Queensland and other parts of the country.

At its fi rst meeting for 2011, the RBA kept the offi cial cash rate at 4.75 per cent. Rates rose by a quarter of a percentage point four times last year, with the last hike in November.

The decision to stay put was in line with the expectations of economists and the credit market. The latter is pricing in less than one quarter-percentage point rise this year.

The accompanying comments by the RBA suggest borrowers worried about higher interest rates can rest easy for a while, says Macquarie economist Ben Dinte.

“There’s defi nitely no urgency to act in the near-term, given the (fl ood) disruption to activity we’ve seen,” said Mr Dinte, adding that Macquarie expects only one interest rate hike in the middle of the year.

The commercial banks, however, could raise interest rates outside the RBA cycle - a move that has sparked consumer and political fury in the past.

The dollar was little changed on the news, edging back briefl y above parity with the US dollar in recent trade before easing back.

Flood impactThe strength of the overall economy remains patchy, with last year’s interest rate rises restraining consumer spending and a stronger Australian dollar denting local industrial output. On the other hand, rising commodity prices and a bulging pipeline of projects will deliver a surge in activity in mining states - at least in regions not

affected by the massive fl ooding of recent weeks.

The fi nancial impact of the fl oods is still mounting but economists expect a short term spike in prices, particularly for fruit and vegetables. While the economy in Queensland and other fl ood-affected regions may be disrupted in the short term, business activity is likely to rebound as the rebuilding efforts begin, they say.

The RBA Governor Glenn Stevens said that the central bank will ‘’look through’’ what it sees as ‘’a temporary adverse effect on economic activity and prices’’ resulting from the fl oods.

‘’The Bank’s preliminary assessment is that the net additional demand from rebuilding is unlikely to have a major impact on the medium-term outlook for infl ation,’’ Mr Stevens said in a statement accompanying today’s rates decision.

While the latest infl ation fi gures were ‘’consistent’’ with the RBA’s medium-term goals, the bank expects some pick up in wages the economy continues to grow.

‘’Employment growth was unusually strong in 2010. Most leading indicators suggest further growth, though most likely at a slower pace,’’ Mr Stevens said. ‘’

After the signifi cant decline in 2009, growth in wages picked up somewhat last year. Some further increase is likely over the coming year,’’ he added.

5

Real Estate Institute of Queensland managing director Dan Molloy said the number of fi rst home buyers in Queensland was gradually starting to strengthen after hitting historical lows last year.

According to fi nance comparison website RateCity, fi rst home buyers started to creep back in November.

ABS fi gures this month show nationally the highest number of fi rst home purchases since March last year.

The largest number of fi rst home buyers in November was from New South Wales with 2542 home loans approved, followed by Victoria with 2342 and Queensland with 1559.

Queensland has not recorded this level of fi rst home buyer activity since November 2009.

RateCity CEO Damian Smith said the fi rst home buyers market was a long way from its peak, when government incentives drove it to record highs, but things were starting to look up. Mortgage broker AFG confi rmed a spike in mortgages to fi rst home buyers in January.

In Queensland they accounted for 12.1 per cent of mortgages in

January compared with 10.5 per cent in December and 9.5 per cent at the same time last year.

Developer Stockland’s general manager residential Queensland Kingsley Andrew said more fi rst home buyers had inquired about homes since the start of the year.

“There (are) a lot of people out there that have made a decision they are going to do something and fi rst home buyers are in that mix,” Mr Andrew said.

He said fi rst home buyers started to re-emerge on the Gold Coast toward the end of last year. What happened on the Gold Coast usually shifted to Brisbane and now his company was receiving renewed fi rst home buyer inquiries from greater Brisbane, he said.

New research from the REIQ has revealed it takes most fi rst time buyers nearly two years to save a deposit for their fi rst property.

It found on average Queensland fi rst home buyers were saving for 21 months for a deposit.

About 35 per cent of fi rst-timers were actually saving for more than two years before approaching a lender for fi nance, the research indicated.

First home buyers slowly returning to property market after historical low

Real Estate Salespeople Is your sales career in the right place? Are you earning what you deserve? How much better would it be working with the REIA and REIQ “Agency of the Year 2010”? TO FIND OUT MORE go to: www.nfn.com.au/career

10 month old Skippy is still a timid girl with new people and in unfamiliar situations, however with the correct guidance from an calm, experienced, new family she will do well. She is a very affectionate and quiet and socialises beautifully with other dogs. A German shepherd x staffi e, she is not good with livestock and birds and will need good fencing. Skippy is just $170 and is desexed, vaccinated, microchipped and wormed and also comes with all the free new owner support you could need.If you would like to meet Skippy or Ebby, visit website: www.awlqld.com.au for more information.

Ebby is 2yrs old & although not too fussed about the other cats, is happy to spend time with her humans. She

has a gorgeous, soft, black coat and will be a beautiful companion to the right person for her. Ebby is just $70 and is desexed, vaccinated, microchipped and wormed and also comes with all the free new owner support you could need.

Pets of the Month

Office 55 960055quick search these properties and more at www.nfn.com.au

NerangUpper Coomera

Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

2010 Australian Agency of the YearMedium Residential Agency

quick search these properties and more at www.nfn.com.auEvery precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.

Price: $229,000Web www.nfn.com.au/29806Contact: Steve Hayes 0421 643 871

Price Slashed - Must Sell• Two large bedrooms• Open plan living• Separate ‘fl exi space’ - great

study or 2nd living area• Stunning modern kitchen• Timber laminate fl ooring

• Reverse cycle air conditioning• Newly tiled bathroom• Terrifi c CBD location

NERANG 2 1 1

Price: $260,000Web: www.nfn.com.au/40889 Contact: Shawn Barber 0404 257 243

Beautiful Villa with Views!• 2 bedroom villa• Large lounge/dining area• Well appointed kitchen • Air conditioning• Private front courtyard• Lockup garage

• Well maintained complex with pool• Currently tenanted at $295 per week • Close to all amenities

HIGHLAND PARK 2 1 1

Price: $249,995Web www.nfn.com.au/45899 Contact: Andrew Davidson 0411 760 600

Terrifi c Townhouse!• Two bedrooms• Double lockup garage• Open plan living and dining• Covered balcony with nice outlook• Renovated kitchen & bathroom• Pool and tennis court in complex

• Easy access to all local amenities• Pet friendly on application • Low body corp

HIGHLAND PARK 2 1 2

Price: $269,000Web www.nfn.com.au/47851 Contact: Andrew Davidson 0411 760 600

Trendy, Tidy & Terrifi c!• Fully renovated villa• Two double bedrooms• Flat grassed yard for the kids• Open plan with timber fl oors• Lovely modern kitchen• Large covered outdoor

entertaining area• Single lockup garage• 2 resort style pools in complex

CARRARA 2 1 1

Price: $234,950Web www.nfn.com.au/25108 Contact: Shawn Barber 0404 257 243

1/4 Acre - Prime Position!• 1014m2 vacant building block• Gently sloping corner position• Sewerage, power and phone

available• Easy access to shops, transport

and town facilities

• Possible development potential for townhouses (subject to council approval)

BEENLEIGH 0 0 0

Price: Offers Over $250,000Web: www.nfn.com.au/37203 Contact: Steve Hayes 0421 643 871

Modern Cottage Charm• Two bedrooms plus loft• Open plan design• Beautiful modern kitchen• Tall raked cathedral ceilings• Timber fl oors• Air conditioning

• Modern bathroom with spa• Lockup garage• Walk to everything!

NERANG 2 1 1


NerangUpper Coomera




Cheapest in the Outlook!• Magnifi cent 689m2 prestige

vacant land site • Dazzling panoramic views of the

Gold Coast & Ocean• Ideal quiet cul d sac position to

capture uninterrupted views

• Surrounded by prestige homes• Located only 15 minutes to

Gold Coast beaches

HIGHLAND PARK 0 0 0


Ground Floor Villa with Offi ce• Three bedroom single level villa• Third bedroom has own entrance

and courtyard - perfect offi ce!• Large open plan design• Air conditioning• Private courtyard

• Lockup garage with storage area• Periodically tenanted with a

rental return of $305 per week

NERANG 3 1 1

Price: $275-285,000Web: www.nfn.com.au/25078 Contact: Paul Moitzi 0423 589 958

Seller Wants Offers!• Two bedroom house• Triple carport• Suitable for cars, boats, caravans• Landscaped gardens• Spacious 662m2 block• Rear covered outdoor deck

• All this under the price of a unit!• DON’T MISS OUT - ACT

NOW!

LOWER BEECHMONT 2 1 3

Price: $289,000Web www.nfn.com.au/49808 Contact: Paul Moitzi 0423 589 958

Immaculate & Pet Friendly!• Two bedrooms• Open plan design• Air conditioning• Terrifi c large kitchen• Private low maintenance

courtyard

• Single LU garaging• Resort style pool in complex• Close to schools and shops

NERANG 2 1 1

Price: $305,000Web www.nfn.com.au/47122 Contact: Julie Morgan-Kemp 0409 870 301

Great Position, Great Start!• Two bedrooms• Open plan living• Air conditioning• Lockup garage• Private courtyard• Great central location

• Estimated return if rented - up to $320 per week

ASHMORE 2 1 1

Price: $319,000Web: nfn.com.au/45824 Contact: Paul Moitzi 0423 589 958

Seller Committed Elsewhere• 3 big bedrooms PLUS ensuite• Open plan design with separate

living and meal areas• Terrifi c large modern kitchen• Private fenced rear courtyard• Lockup garage

• Security gated pet friendly estate• Community pool and BBQ area• Stroll to shopping complex

CARRARA 3 2 1


NerangUpper Coomera



Price: $380,000Web www.nfn.com.au/31415 Contact: Steven Hayes 0421 673 871

Investor’s Delight!• Three bedrooms• Semi ensuite to master• Open plan lounge and dining• Separate family room• Wide galley style kitchen• Large covered outdoor living area

• Low maintenance yard• LU garage plus off road parking• Currently tenanted with a long lease

HIGHLAND PARK 3 1 1

Price: $329,000Web: www.nfn.com.au/35458 Contact: Andrew Davidson 0411 760 600

Acreage Block, Prestige Estate• 4060m2 building block• Elevated with bush outlook• Corner block with great frontage•• Surrounded by prestige acreage

homes• Town water

• Located in Lakeview Downs Estate

• Only minutes to CBD

MAUDSLAND 0 0 0

Price: $329,000Web: nfn.com.au/49792 Contact: Julie Morgan-Kemp 0409 870 301

Backs to Riverside Parkland• Pet friendly complex • 2 large bedrooms PLUS study• Spacious open plan living • New bright modern kitchen• Air conditioning• LU Storage garage

• Large covered outdoor area • Private landscaped yard

overlooking riverside parkland

NERANG 2 1 1

Price: $359,000Web www.nfn.com.au/ ID Contact: Andrew Davidson 0411 760 600

Value, Location, Pet Friendly!• Three bedrooms, ensuite• Spacious open plan design with

tall high pitched ceiling• Ground level master bedroom• Pet friendly, secure estate with

pool and tennis court

• Air conditioning• Big private courtyard• Low body corp

COOMBABAH 3 2 1

Price: $379,000Web: www.nfn.com.au/40875 Contact: Shawn Barber 0404 257 243

Top Value Home with Pool!• 3 good sized bedrooms• Semi ensuite to master• Split level fl oorplan• Separate dining area• Big kitchen with loads of space • Covered outdoor area

• Inground pool• LU garage with drive through access

HIGHLAND PARK 3 1 1


Price, Pool, Perfection!• Three bedrooms• Lockup garage plus room for

boat/trailer/campervan• Sparkling inground salt pool• Open plan living and dining• Wide full length patios

• 808m2 landscaped corner lot• Child friendly neighbourhood

HIGHLAND PARK 3 1 1


NerangUpper Coomera




Ultra Modern Magic!• Sensational steel frame home• 3 large bedrooms• Open plan living and dining• Air conditioning• Stunning new open kitchen• Large double garage with toilet

• Pool with decking & shade sail• Wide side access for additional

secure parking

HIGHLAND PARK 3 1 2

Price: $457,500Web www.nfn.com.au/ 47205 Contact: Andrew Davidson 0411 760 600

Privacy, Position and Price!• 4 bedrooms, ensuite to master• Large separate family room• Huge rumpus or games room• Air conditioning• Covered outdoor living area• Massive triple lockup garage,

doubles as a entertaining area • Walk to school, parks and a

short drive to shopping centre

WORONGARY 4 2 3


Livin’ Large!• Four bedrooms, ensuite• Formal lounge room• Separate tiled family room• Air conditioning• HUGE rumpus with wet bar• Spacious covered deck area

• Double garage, single garage plus workshop

• 1234m2 lot, fully fenced

HIGHLAND PARK 4 2 3

Auction: Onsite 19th FebruaryWeb www.nfn.com.au/ ID Contact: Steve Hayes 0421 643 871

Hot Buy! Don’t Miss It!• Four bedrooms, esnuite• Formal lounge room• Big open plan living with built in

bar or study • Terrifi c kitchen with gas cooking • Lovely plunge pool

• Double lockup garage• Covered outdoor al fresco area

MOLENDINAR 4 2 2

Auction: Onsite 5th MarchWeb www.nfn.com.au/49220 Contact: Steve Hayes 0421 643 871

Big, Bold, Must Be Sold!• Four bedrooms plus study•• Ensuite to master• Spacious formal lounge plus

extra large family room• Large modern kitchen• Upstairs retreat or media room

• Undercover entertaining area plus poolside gazebo

• Double garage plus double carport

NERANG 4 2 4


Private Acreage Gem• Three bedrooms plus ensuite• Separate big rumpus room or

4th bedroom• Study/offi ce• Spacious lounge room with high

pitched raked ceilings

• Beautiful covered deck• 4065m2 lot private and landscaped• Big lockup garage plus 3 car carport

GAVEN 3 2 4


NerangUpper Coomera



Price: Offers over $520,000Web: www.nfn.com.au/34941 Contact: Steve Hayes 0421 643 871

Executive Lifestyle• 3 bedroom executive townhouse• Massive master bedroom with

ensuite and spa bath• Spacious sunken lounge room• Large loft plus library or offi ce• Large modern kitchen

• Double auto LU garage• Estate boasts pool, tennis courts, gym,

24 hour security & more

CLEAR ISLAND WATERS 3 2 2

Price: Offers Over $560,000Web: www.nfn.com.au/38422 Contact: Steve Hayes 0421 643 871

Super Size Luxury!• Four bedrooms, two ensuites• Parents retreat with kitchenette

- dual living potential!• Extra large offi ce• Separate spacious living areas• Brand new modern kitchen

• Beautiful inground pool• Covered outdoor entertaining area• Double garage plus double shade sail

NERANG 4 3 4

Price: $599,000Web www.nfn.com.au/47930 Contact: Paul Moitzi 0423 589 958

Lifestyle Living• 4 bedrooms, 2 with ensuites• Spacious open plan design• Separate lounge and dining areas• Stunning 2 pac kitchen• Air conditioning• Double lockup garage

• Inground salt water pool• Outdoor covered entertaining area• Stunning Surfers views

HIGHLAND PARK 4 3 2

Auction: Onsite 19th FebruaryWeb www.nfn.com.au/47128 Contact: Julie 0409 870 301 Paul 0423 589 958

Town Acreage Steal!• Four bedrooms, ensuite • Three separate living rooms• Modern timber kitchen • Glass french bi-folds opening out

to covered entertaining area• Beautiful pool with Bali hut

• Full size tennis court• Double carport & side access• 5109m lot with room for big shed

GAVEN 4 2 2

Price: $620,000Web www.nfn.com.au/49791 Contact: Julie Morgan-Kemp 0409 870 301

HUGE Family Home• 3 large bedrooms plus ensuite• Downstairs converted to 2

rooms plus study with new kitchen and bathroom

• Large separate living areas• Lovely new kitchen

• Air conditioning• Space for 4 cars• Fully fenced lot in a central location

ASHMORE 3 2 -

Price: $659,000Web: www.nfn.com.au/35775 Contact: Steve Hayes 0421 643 871

Dual Living Acreage Homes• Four bedrooms, ensuite• Large open lounge and dining• Terrifi c modern kitchen• Air cond, and solar hot water• Two bedroom self contained fl at• Long covered outdoor living area

• LU workshed, tandem LU garage plus double carport

• 4312m2 lot, gently sloping

UPPER COOMERA 6 3 4


NerangUpper Coomera



Price: $695-729,000Web: www.nfn.com.au/30483 Contact: Julie Morgan-Kemp 0409 870 301

Awesome Acreage Home• 4 bedrooms, 2 with ensuites• Private parents retreat• Formal & informal living• Air conditioning• Inground pool and Bali hut • 2902m2 landscaped block

• Double auto lockup garage plus driveway to 9m x 7.5m shed

MOUNT NATHAN 4 3 4

Price: $749,000Web: www.nfn.com.au/25049 Contact: Julie 0409 870 301 Paul 0423 589 958

Prime Position, Must Be Sold• 280 degree views to Surfers• Four bedrooms, ensuite• Massive games room• Expansive open living and family• Huge gourmet kitchen• Large front and rear balconies

• Ducted air con and Vaccu-maid• Salt water pool with water feature• Double lockup garage

HIGHLAND PARK 4 2 2

Price: $799,000Web: www.nfn.com.au/28454 Contact: Paul Moitzi 0423 589 958

1/2 Acre in Town!• Four bedrooms, ensuite• Separate large 9 x 8m offi ce• 3 Separate living areas• Large new kitchen with gas cook-

ing and granite benchtops• IG pool with wide gazebo area

• Double shade sail parking plus loads of off street parking

• 2636m2 block, close to CBD

NERANG 4 2 2


Private Acreage - Dual Living!• Three bedrooms plus large study• Self contained studio granny fl at• Wide covered entertaining area

plus front deck• Separate huge rumpus with bar• Insulated lockup steel workshed

• Double lockup garage• 8923m2 lot (2.2 acres) on a

private road

WORONGARY 4 3 3

Price: $795 - 825,000Web: www.nfn.com.au/25020 Contact: Julie Morgan-Kemp 0409 870 301

50Sqs, Perfect for Dual Living!• 4000m2 lot with 2 street access• 2 master suites each with ensuite

plus 4 double bedrooms• Huge modern kitchen with• Three separate living areas• Giant covered outdoor area

• Inground salt pool with Bali hut• 9x7m shed with power & carport • Double auto garage and more!

MAUDSLAND 6 3 6

Tender: Closes 5pm 26th FebWeb: www.nfn.com.au/47937 Contact: Shawn Barber 0404 257 243

Amazing B & B Opportunity!• 8083m2 lot, fully landscaped • 3 bedroom home plus a big one

bedroom B&B guest house• Ensuite to master• Separate living areas• Big country style eat in kitchen

• 4 car garaging plus carport• Sold as registered operational business

for a 4 star B&B

SPRINGBROOK 4 3 5

Who takes the risk of a property being damaged after a sale Contract has been signed?

While the sale Contract form used will provide some guidance, the general law also makes some provision for these issues.

For example, Section 64 of the Property Law Act (Qld) allows a buyer to rescind a contract for the sale of a dwelling house or unit before the earlier of the taking of possession or settlement if the property is so damaged by fi re storm or tempest as to be unfi t for human habitation. That will always be a question of degree and the test may not be satisfi ed by partial or complete inundation by fl oodwaters. In any event, the damage to the dwelling would have to be severe. Section 63 of that Act also says, more or less, that the buyer is entitled to the benefi t of any insurance held by the seller.

Section 50 of the Insurance Contracts Act 1984 (Cwlth) says that if a property is subject of insurance and is sold by a Contract under which risk has passed to the buyer then the buyer is deemed to be an insured person. Whether the relevant policy covers fl ood (however that may be defi ned in the policy) and whether the policy lapses or is maintained by the seller during the term of the Contract are not covered by that Act. The seller is not obliged by law to hold or maintain insurance.

Property Insurance: Passing the Risk

$raised since December by First National Real Estate for the Australian Red Cross

Another $15,800

The Contract forms in common use in Queensland differ in some respects.

The REIQ forms of contract (house and land, community title lots) say that the property is at the risk of the buyer from 5.00pm on the fi rst Business day after the Contract Date. That provision satisfi es at least partly the tests set in Section 50 of the Insurance Contracts Act. The seller must use the property reasonably until settlement and must not alter the property signifi cantly or in a way that could cause expense for the buyer.

The ADL form says much the same thing and requires the seller to maintain its policy of insurance as long as he remains in possession. It goes on to say words to the effect that the seller must deliver the Property at Settlement

without damage or loss, fair wear and tear excepted. Although the buyer cannot delay settlement or withhold money, they can require the seller to rectify prior to settlement and try to recover the reasonable costs of rectifi cation from the seller after settlement.

On balance, buyers should be encouraged to make their own arrangements for insurance immediately after a Contract is signed. They should not wait until they have received a satisfactory building inspection and have obtained a fi nance approval or until satisfaction of special conditions.

Buyers should also make sure that they understand what their insurance cover actually covers and not simply accept the cheapest quote.

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