Clean Energy explosion fuels property boom

As Australia strives to meet carbon emission targets and avert the global warming crisis, the push is on to develop low-carbon solutions for our energy production. Coal-fired power stations produce three times the carbon emissions as cleaner gas fired power stations creating a thriving new industry developing cleaner power plants. Australia is now leading the world in Coal Seam Gas production, a new method for extracting pure methane gas from underground coal deposits.

 

In the past coal seam gas was vented into the atmosphere or burned during the coal mining process, as it was dangerous to mining operations. Now Arrow Energy and Origin Energy are extracting the gas and generating electricity in south eastern Queensland by tapping the gas from coalfields in the Bowen and Surat Basins.

 

The coal seam gas industry is expanding rapidly creating a boom for real estate in the town of Dalby, 210km west of Brisbane. Most sources agree that the town will double in size within five years, creating demand for new, modern housing for the influx of workers, engineers and their families.

 

At 888 Wealth Creation, we have brokered a deal to provide land and house packages in Dalby at wholesale prices for property investors. We have tapped into exclusive marketing channels that are not available to the general public to offer quality new homes with immediate cash returns and sales well above the cost to build. There is a limited supply of land that will lead to shortages of supply, increasing rents and property prices.

 

In this year alone rents have increased from $480 per week to $550 per week and houses that cost $336,000 to build have sold for $418 – 427,000. This boom is taking off fast and the limited land releases are selling quickly. This is the best time to invest here, before the momentum peaks and prices get out of hand.

 

This is by far the best property opportunity I have seen since 2003, when our Brisbane properties doubled in value in one year. Call Vincent on 66857888 to get on board.

To fix or not to fix?

I have had a number of enquiries this month about whether to fix rates now or not. Most lenders have recently increased their fixed rates for 3 years and above, triggering a perception that fixed rates are now going to keep going up and it would be best to fix now. Other lenders have dropped their fixed rates for less than 3 years recently as well, creating some confusion as to the forward direction of fixed rates.

 

The Reserve Bank of Australia has decided to leave interest rates on hold at their May and June meetings at a historic low of 3%. The Sydney Futures Exchange forecast for interbank lending rates has rates bottoming out in October this year, with gradual increases after that.

In a recent article in Australian Broker Mark Hewitt, manager of sales and operations at Australian financial Group (AFG) said, "We are surprised by the relatively low take-up of fixed rate mortgages. It suggests that most property buyers are expecting more bad news on the economy which will in turn force interest rates down. While this may have an impact on variable rate mortgages, our view is that longer term fixed rate loans may have bottomed out. Many property buyers may have missed the boat already."

 

Sadly, being a mortgage broker does not qualify me as an accredited fortune teller, so I can not advise with any certainty about the outcomes of events yet to happen. Given the mixed signals in the market, I will probably fix half my loans for three years soon. We have access to the leading lenders and can offer comparisons.

 

Remember that if you do fix your rates you are locked into a contract and exiting early will cost you dearly in most instances. You can generally not change the amount of the loan that is fixed by paying it down and if you sell you also face a penalty.

 

If you would like a quote on current fixed rates from your lender, or a comparative look at the market, please call us on 02 66857888.

Last minute rush to get First Home Owners Grant averted.

Government extends additional bonus period.

First home buyers in NSW can still qualify to get a $21,000 grant and the state government will top it up with a further $3,000 for buying or building a new home. On top of this they will qualify for stamp duty concessions worth a further $10,000 on the purchase of a $330,000 home.

 

There has never been a better time to enter the market with interest rates approaching historic lows and a generous government incentive which has been extended until the end of 2009.

At 888 Wealth Creation we specialise in providing free support for first home buyers with:

Free Buyer Assist program with phone support for purchasing advice.

Free Lending advice including affordability, loan selection, and approval coaching.

Free mortgage broking service – let the lender pay!

Free Property Analysis reports showing the value of your home over the years as a cornerstone for creating financial independence.