Renovation boom
Renovation boom
Posted on Tuesday, November 06 2012 at 9:07 AM
When it comes to where retail buyers are putting their money, renovations topped the list for the September quarter, according to CommSec chief economist Craig James.
Renovations were booming ahead
in the September quarter as real spending on hardware, building and garden
supplies surged by 4.9 per cent, the largest gain across the retail sector,
James says.
“Aussie homeowners were either
sprucing up their homes for sale over September or they were just looking to
make themselves more comfortable. But whatever the motivation, spending at
hardware and outdoor supply outlets posted the largest quarterly gain in 5.5
years,” he says.
“Hardware and garden outlets
appear the big winners in the current environment. And that certainly lines up
with recent data on building approvals showing renovation approvals at record
highs in trend terms.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Are mining towns safer than you think?
Rates remain on hold
Forget lotto – make your own money
Renovation boom
Record-breaking mortgage month for biggest broker
Price recovery eases slightly in October
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/1Qc24tIIThg/renovation-boom
Forget lotto – make your own money
Forget lotto – make your own money
Posted on Tuesday, November 06 2012 at 11:37 AM
Millions of people are rushing to buy lotto tickets for the big $100 million draw.
Just as many are
punting on horses for the race that stops the nation, the Melbourne Cup. While
having a punt is always good fun and in the case of the Melbourne Cup, one of
the biggest events on the calendar, have you ever considered securing – rather
than betting – on your financial future?
John Lindeman of
Property Power Partners says one bet you can make, where everyone is a winner,
is to invest in property.
“If you’re going
to invest in your future, housing or property is the most secure form of
investing there is, better than shares or commodities,” he says.
“The reason is
everybody needs a place to live, it’s not something you can do without.”
Gavin Hegney of
Hegney Property Group says he was shocked to hear an owner of a local
newsagency in Perth recently told him many customers were spending $150 per
week on lotto.
“That’s $7500 per
year. Why wouldn’t you save that for three years and including interest, that’s
$25,000 plus,” Hegney says.
“While one person
builds their financial future over a 15 to 20-year period, what’s actually the
chance of winning lotto if you go in it every week for 15 to 20 years? When you
add it all up, it could be the price of a basic investment plan or a basic
savings plan, which would have surety of return, rather than the hope of
returning a win. There’s no guarantee, so the only sure bet is to save and
invest.”
In fact, Hegney
says six out of 10 lotto winners usually blow their money and end up in a worse
position, because everyone they know expects something for nothing.
However, Lindeman
emphasises it’s all good fun and in the case of the Melbourne Cup, having a
punt shouldn’t be considered too sinister.
And while
investing in a mining town is considered a risky gamble by many, Lindeman
believes the mining boom is also a relatively safe bet, depending on where you
buy.
He says towns
such as Mount Isa in Queensland and even the unlikely small New South Wales
town of Broken Hill are likely to boom.
“Mineral prices
for copper and silver have gone up, which means mines will be opening and
demand will continue.”
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/akZY5RbyueI/forget-lotto-make-your-own-money
Rates remain on hold
Access denied.
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/puGyFWsrVJk/rates-remain-on-hold
Are mining towns safer than you think?
Are mining towns safer than you think?
Posted on Tuesday, November 06 2012 at 3:55 PM
We’ve heard time and time again that mining towns are ‘risky’, but consulting group RPS believes they’re actually quite safe.
The company
conducted a research study and concluded certain locations are able to provide
excellent rental returns and capital growth without the associated high-risk
profile. This was especially the case for larger towns, where they:
–
had a
critical mass of population;
–
had
diversified local economies or exposure to multiple commodities;
–
had
moderate land supply;
–
served
a regional service role;
–
had
exposure to major LNG (liquefied natural gas) or CSG (coal seam gas) energy
projects; and
–
were
recipients of state and federal government funding.
Manager and
senior economist for RPS, Mark Wallace, says investors often overlook mining
towns due to perceived volatility, when in fact all they have to do is conduct
more research.
“RPS found there
were a number of towns across Australia that offered an excellent investment
proposition, with strong returns and below-average risk profiles, including
Karratha in Western Australia, Emerald in Queensland and Singleton in New South
Wales,” he says.
“All these
locations met the criteria and were offering rental returns between 5.7 to 10.4
per cent per annum respectively.
“This was because
these locations had robust population growth and supply of property to ensure
that they had a more normalised real estate market, but were also fuelled by
their ability to mine and supply energy related resources, being either LNG or
CSG.
“Often the market
gets caught up in the short-term volatility in iron ore and coal spot prices,
thinking those movements reflect the current mining boom. But Australia’s
future is as a major energy supplier and the longevity and certainty of LNG supply
contracts tend to stabilise the economy and provide a buffer from overseas
instability.”
Karratha property
prices have grown 324 per cent in the past 11 years, while Emerald has
experienced 269 per cent growth and Singleton 171 per cent.
In addition,
rental vacancy rates ranged from just 0.6 per cent through to 4.5 per cent.
Wallace says
investors are unaware capital expenditure by the mining sector over the past
three quarters has exceeded $65 billion, or more than what was spent during the
entire 2006 to 2008 boom.
“While iron ore
and coal played a predominant role in the previous mining boom, the current
capital expenditure pipeline is dominated by both onshore and offshore natural
gas developments.
“Projects such as
Gorgon, Pluto and Wheatstone in Western Australia and coal seam gas
developments in the Bowen and Surat Basins of central Queensland are currently
driving investment. In fact, of the $260 billion of advanced mining projects in
Australia’s current investment pipeline, over $193 billion or 76 per cent is in
energy projects.”
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/t_xGOzWYZVE/are-mining-towns-safer-than-you-think
Landlords given more rights in SA
Landlords given more rights in SA
Posted on Thursday, November 01 2012 at 1:11 PM
New legislation introduced in South Australia gives landlords more rights and possibly less bills to pay.
Under changes to
the Residential Tenancies Act 1995,
tenants will be responsible for water usage charges, where there’s no
agreement.
Landlords can also
ask for an additional week’s rent in bond if the tenant wants to have a pet on
the property.
As well as that,
problems with rental arrears will be slightly easier to deal with. Landlords
can now apply directly to the tribunal for vacant possession of a property for
rent arrears, without serving the tenant with a breach of notice, provided they’ve
already served the tenant with two valid breach notices for rent arrears in the
preceding 12 months.
Minister for
Business Services and Consumers John Rau says the changes are designed to
provide better clarity to residential tenants, landlords, rooming house
residents, proprietors and residents of lifestyle villages.
“The Residential Tenancies Act 1995 is an old piece of legislation that requires updating
to reflect the changes that have occurred in the sector over the last 15
years,” Rau says.
“The development
of this legislation has involved a lengthy review process and required careful
consideration and balancing the needs of landlords and tenants alike.”
Tenants also
benefit, according to Rau. For example, rent under a fixed-term tenancy won’t
be able to be increased within 12 months of the rent being fixed or last
increased.
Landlords must
now allow tenants to pay their rent by at least one method that isn’t cash or
via a fee-charging third party, such as a property manager.
Landlords are
also now responsible for tenants’ reasonable losses, providing the losses are a
result of a failure to repair.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Price recovery eases slightly in October
Landlords given more rights in SA
ACT election results likely to mean stamp duty phase out
Paying down more faster does come with risks
NSW zoning appeals will boost housing supply, jobs
‘Super Saturday’ signals return of confidence
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/yIVcqb_RZF0/landlords-given-more-rights-in-sa
Price recovery eases slightly in October
Price recovery eases slightly in October
Posted on Thursday, November 01 2012 at 2:26 PM
Capital city house prices have had four consecutive months of recovery interrupted by a one per cent fall during the month of October.
The RP Data-Rismark Home Value Index recorded the
first month-on-month decline since May, with the eight capital city aggregate
sliding slightly.
However RP Data’s research director Tim
Lawless says other indicators suggest the housing market is gathering some
strength.
“Auction clearance rates (are) holding firm
around the 60 per cent mark across the two major auction markets and
owner-occupier housing finance numbers (have shown) steady improvements since
February 2012, albeit from a very low base,” Lawless says.
“Whether the October decline is a blip on
the path to a recovering market or a sign of further weakness is yet to be
seen.”
The data for October was described as
“broad-based” although Darwin saw a four per cent lift while Perth values rose
0.4 per cent.
Sydney and Brisbane both saw a 0.9 per cent
drop in values, while Melbourne experienced a 1.1 per cent fall.
Of the mainland capitals, the largest
monthly decline was seen in Adelaide where dwelling values dipped 2.4 per cent.
On a quarterly basis, most capitals
recorded a rise – the largest in Darwin (up 1.5 per cent), followed by Adelaide
(1.3 per cent) and Perth and Sydney (both up 0.7 per cent).
The key to a sustained property market
recovery is consumer confidence, Lawless says.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Price recovery eases slightly in October
Landlords given more rights in SA
ACT election results likely to mean stamp duty phase out
Paying down more faster does come with risks
NSW zoning appeals will boost housing supply, jobs
‘Super Saturday’ signals return of confidence
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/bT_A0o2KpPU/price-recovery-eases-slightly-in-october
Paying down more faster does come with risks
Paying down more faster does come with risks
Posted on Wednesday, October 31 2012 at 10:03 AM
The risk of over committing and mortgage defaulting could be a real scenario if mortgage holders don’t fully understand the type of additional home loan repayments they take on, cautions national mortgage broker LoanMarket.
While the intention to pay down
the mortgage faster is smart at times of lowering interest rates, property
owners could face a number of traps, LoanMarket’s Alexander Heifetz says.
“It is quite common to hear from lenders or in the media that in order
to pay off a home loan quickly you need to pay fortnightly or even weekly,” Heifetz
says.
“In certain cases this can be wrong and could create unnecessary
over-commitment and stress, or could even lead to missed repayments and loss of
property.”
Two types of fortnightly repayments are generally offered – ‘true’ fortnightly repayments and ‘inflated’ fortnightly repayments, he
says.
“Some lenders have true fortnightly repayments where the repayment is
calculated as a simple division of the annual repayment by the number of
fortnights in the year, while inflated fortnightly repayments is a simple
division of the monthly repayment by two,” Heifetz says.
“There can be a significant difference in the amount you have to repay
and if the bank charges inflated fortnightly repayment then you pay extra and
this way you pay your loan down faster. The borrower just has to be sure they
can afford to pay the extra amount.”
It’s particularly important to
understand the home loan repayment structure in times of job insecurity and
economic volatility, he says.
“If you lose your income for whatever reason and start missing mortgage
payments, this is when the difference between repayment frequency becomes
important,” Heifetz says.
LoanMarket’s repayment examples:
True
fortnightly repayment calculation: $2000 x 12/26 = $923
Inflated
fortnightly repayment calculation: $2000/2 =$1000
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Paying down more faster does come with risks
NSW zoning appeals will boost housing supply, jobs
‘Super Saturday’ signals return of confidence
Negative mining headlines won’t dampen Perth’s rents
States axing first home grants are in breach of federal agreement, REIA claims
Why most investors stop at one property
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/jJVt8pzyNKk/paying-down-more-faster-does-come-with-risks
NSW zoning appeals will boost housing supply, jobs
NSW zoning appeals will boost housing supply, jobs
Posted on Monday, October 29 2012 at 3:51 PM
Rejected rezoning applications could soon be appealed and reassessed independently, the New South Wales Government has announced.
Development industry representative group
Urban Taskforce praised the proposal, which it says is a “great step forward”
in boosting dwelling supply and supporting jobs.
The organisation’s chief executive officer
Chris Johnson believes “many reasonable development projects” have been lost
over the years due to the inability to appeal rezoning decisions.
“The industry has been frustrated by the
inability to have a review of rezoning proposals that are refused for new
housing or other building types (but) have merit,” Johnson says.
“There are often changing circumstances or
cases where local plans don’t reflect higher level strategic plans that lead to
a different type of development from that defined in a local plan.”
Under the proposal, council refusals could
be referred to the Joint Regional Planning Panel. Refusals made by the Department
of Planning would be referrers to the Planning Assessment Commission.
Johnson described the plan as a “sensible
way of getting an independent assessment of decisions”.
“While
planners at a state and local level have many skills, they’re not at the coalface
of marketplace changes, often driven by new forms of technology or social
changes,” he says.
“Those
taking the risk of developing in a changing market place are often closer to
market trends and the reality of consumer preferences.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
NSW zoning appeals will boost housing supply, jobs
‘Super Saturday’ signals return of confidence
Negative mining headlines won’t dampen Perth’s rents
States axing first home grants are in breach of federal agreement, REIA claims
Why most investors stop at one property
The cheapest investment properties in Australia
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/NQehTCLznTw/nsw-zoning-appeals-will-boost-housing-supply-jobs
Negative mining headlines won’t dampen Perth’s rents
Negative mining headlines won’t dampen Perth’s rents
Posted on Friday, October 26 2012 at 4:30 PM
The Perth housing market is well positioned to weather any patchiness caused by an early peak of the mining boom, one local expert believes.
Recent speculation about ongoing investment in
resource projects and a reported ‘end’ to the boom likely sent a shockwave
through parts of Western Australia, Hegney Property Group’s Gavin Hegney says.
However the state’s mining sector relies on a small
population base, employing 11 per cent of the entire WA workforce, so with some
of the world’s largest commodity projects occurring in such a small economy this
means the impact is a “bucking horse, not a rocking horse”, he says.
Rental vacancy rates in Perth currently hover around
1.9 per cent and sale listings are about 4000 below the market equilibrium.
“That suggests a real ongoing demand for rental
properties rather than buying, (so) with a low vacancy rate and a below average
number of properties for sale, the Perth market is (well) positioned for a
mining downturn.”
If the industry expansion phase of the mining growth
cycle peaks earlier as some suggest, Perth’s housing market is “perfectly
placed”.
“If the mining investment was to run its suggested
original course and peak somewhere in 2014-15, then the Perth market is set for
a run in rents and prices, especially if interest rates were also to drop as
expected.”
If the goal is for an even and sustainable market,
Hegney believes the Perth property market is “well positioned”.
However, given a number of people move to WA to chase
the benefits of worker demand, the negativity and fear generated by media
reports might have an impact on migration levels, employment and sentiment, he
says.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Negative mining headlines won’t dampen Perth’s rents
States axing first home grants are in breach of federal agreement, REIA claims
Why most investors stop at one property
The cheapest investment properties in Australia
Queensland property buyers to benefit from paperwork reforms
76% of Australians expect property prices to rise or stay steady
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/AKxo1AS37dw/negative-mining-headlines-wont-dampen-perths-rents
States axing first home grants are in breach of federal agreement, REIA claims
Posted on Thursday, October 25 2012 at 3:21 PM
The Real Estate Institute of Australia (REIA) claims New South Wales, Queensland and South Australia are breaching a federal agreement by sacrificing first homebuyer grants for new home grants, plus ignoring the jobs generated by the renovations market.
REIA president Pamela Bennett
says the states’ move to turn their backs on the established home market and
consequently the home improvement building sector is a breach of the InterGovernmental
Agreement (IGA) and ignores the evidence that 70 per cent of first homebuyers
have a clear preference for established houses.
“The IGA clearly states that
assistance to first homebuyers will be uniform and that an eligible home will
be new or established,” Bennett says.
“First homebuyers make up 17.7 per cent of the
market. REIA strongly urges the Federal Treasurer, Wayne Swan, not to agree
with the states’ requests for an amendment to the IGA and effectively ignore
the needs of this considerate section of the buyers’ market.”
Bennett says most first homebuyers prefer to live
close to existing facilities and work hubs rather than live in new housing
estates.
“Lifestyle, public transport and commuting are just
a few of the factors concerning those entering the market,” she adds.
What also can’t be ignored as states cut the
established home grant, Bennett says, is the potential loss of jobs in the
established home renovations sector.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
States axing first home grants are in breach of federal agreement, REIA claims
Why most investors stop at one property
The cheapest investment properties in Australia
Queensland property buyers to benefit from paperwork reforms
76% of Australians expect property prices to rise or stay steady
Perth rents on the rise
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/f-9edQTE33M/states-axing-first-home-grants-are-in-breach-of-federal-agreement-reia-claims