Latest Property News from Ted Hanson

Friday 01 May 2009 I Wanted To Change The World When I was a young man, I wanted to change the world. I found it was difficult to change the world, so I tried to change my nation. When I found I couldn't change the nation, I began to focus on my town. I couldn't change the town and as an older man, I tried to change my family. Now, as an old man, I realize the only thing I can change is myself, and suddenly I realize that if long ago I had changed myself, I could have made an impact on my family. My family and I could have made an impact on our town. Their impact could have changed the nation and I could indeed have changed the world. Written by an unknown Monk around 1100 A.D. 1. Record response to call for new homes There has been a record response to the call for electronic tenders to build new social housing dwellings in NSW, Federal Housing Minister, Tanya Plibersek and NSW Housing Minister, David Borger announced this week. The tender was for proposals of land and multi unit packages for potential purchase as social housing under the Nation Building Economic Stimulus Plan. Read More... There has been a record response to the call for electronic tenders to build new social housing dwellings in NSW, Federal Housing Minister, Tanya Plibersek and NSW Housing Minister, David Borger announced this week. The tender was for proposals of land and multi unit packages for potential purchase as social housing under the Nation Building Economic Stimulus Plan. Ms Plibersek said the plan is a practical step towards cushioning the impact of the global financial crisis by supporting jobs in the construction sector. "Housing and construction is a major employer in the Australian economy", she said. "This is about jobs for builders and tradies as well as associated industries such as building manufacturers and suppliers who help keep the Australian economy ticking over." Mr Borger added that over the next three years, the Commonwealth and NSW Governments will invest $3 billion to build about 9000 additional social housing homes and support some 37,000 jobs and apprenticeships across NSW. "We need to move quickly - 75 per cent of the properties that the Commonwealth is funding need to be ready for tenants to move in by Dec 2010," he said. "We want 3,000 of those new homes to come from the purchase of private land with the potential for residential development and in early March we launched a request for proposals and held briefing sessions across the state with hundreds of people attending. "In just four weeks we received submissions for 877 sites which alone could deliver more than 15,000 new homes - giving us plenty of room to find the best 3,000." Mr Borger said the Government was looking for projects that deliver "the right homes, in the right location, for the right price". "We will not buy or build great numbers of new social housing homes in one location", he said. "We know that healthy communities need a good mix of residents and we are determined to encourage better, stronger communities." The final 3000 will be released by June and it is expected that work will start shortly afterwards. Top 2. New `hardship' threshold to help borrowers Good news this week for homeowners having difficulty meeting their mortgage repayments, with the announcement by Senator Nick Sherry, Minister for Superannuation and Corporate Law, of changes to the `hardship' threshold. The threshold to access the hardship arrangements is set according to a complex formula that caps the access point at 110 per cent of the average loan size for new dwellings in NSW as set by the Australian Bureau of Statistics monthly. Read More... Good news this week for homeowners having difficulty meeting their mortgage repayments, with the announcement by Senator Nick Sherry, Minister for Superannuation and Corporate Law, of changes to the `hardship' threshold. The threshold to access the hardship arrangements is set according to a complex formula that caps the access point at 110 per cent of the average loan size for new dwellings in NSW as set by the Australian Bureau of Statistics monthly. It is currently $312,400 but that is set to change again to $500,000 on 12 May. "This means if homeowners find themselves in financial hardship they will be able to request help", Minister Sherry said. "That might be a change to certain terms of their credit contract on the grounds of hardship or a postponement of enforcement proceedings." "We're also putting in place a new, simple and clear way of adjusting the threshold upwards in future, if we need to," he added. The minister said that this measure should also provide greater certainty to credit providers, since the threshold has ranged between $295,790 and $368,390 since 2004, making it difficult for providers and consumers to know if a loan qualifies. The changes are contained in the National Consumer Credit Protection Bill 2009, which was released in full on April 27, 2009. The threshold changes will take effect once the National Consumer Credit Protection Act commences, which is expected to occur on 1 November 2009. On 4 April 2009 the Government announced a new agreement with the four major banks, to assist borrowers facing financial hardship, and is working with industry associations to encourage the adoption of these principles by all lenders. Top 3. Sydney - one of the best Sydney is one of the best cities in the world to live in, according to an annual appraisal of the most liveable cities for expatriates. The Mercer 2009 Worldwide Quality Of Living Survey ranked Vienna as the most congenial city in the world for expatriates. Baghdad ranked last, due to its "lack of security and stability" continuing to have a large impact on quality of living. Read More... Sydney is one of the best cities in the world to live in, according to an annual appraisal of the most liveable cities for expatriates. The Mercer 2009 Worldwide Quality Of Living Survey ranked Vienna as the most congenial city in the world for expatriates. Baghdad ranked last, due to its "lack of security and stability" continuing to have a large impact on quality of living. Slipping into the top ten again for the second year in a row, Sydney (at 10th spot) was the highest-ranked Australian city again this year, ahead of Melbourne at 18 and Perth at 21. Adelaide and Brisbane were considered less "liveable", ranked at 30 and 34 respectively, but still well within the top 100 cities in the world. Cities are ranked against New York as the base city with an index score of 100. Mercer's Quality of Living ranking covers 215 cities and is conducted to help governments and major companies place employees on international assignments. This year's ranking also identifies the cities with the best infrastructure based on electricity supply, water availability, telephone and mail services, public transport provision, traffic congestion and the range of international flights from local airports. Slagin Parakatil, senior researcher at Mercer, commented that infrastructure has a significant effect on the quality of living experienced by expatriates. "Whilst often taken for granted when functioning to a high standard, a city's infrastructure can generate severe hardship when it is lacking", Mr Parakatil said. As far as infrastructure goes, Singapore topped the list, followed by Munich and Copenhagen. Sydney again was way ahead of the other Australian capital cities, ranked at 11 - below London (8) but above Paris (13). Melbourne was ranked at 35, while Adelaide, Brisbane and Perth all fell just below on 38. Top 4. The greener side of fences In simpler times past, the only important thing about a fence was whether it was tall enough, long enough and sturdy enough. With our expanding eco-consciousness, however, we are coming to realise that the materials we have been using to build our fences aren't always best friends to the environment. Non-recycled metal uses a lot of energy to manufacture and unless wood has been recycled, chances are it has contributed to tree-logging problems across the world. On top of that, commercially sold wood is often treated with chemicals to prevent decay and keep insects away. Read More... In simpler times past, the only important thing about a fence was whether it was tall enough, long enough and sturdy enough. With our expanding eco-consciousness, however, we are coming to realise that the materials we have been using to build our fences aren't always best friends to the environment. Non-recycled metal uses a lot of energy to manufacture and unless wood has been recycled, chances are it has contributed to tree-logging problems across the world. On top of that, commercially sold wood is often treated with chemicals to prevent decay and keep insects away. The good news is, that there is a growing range of eco-friendly fencing materials that hold more than their own. We have looked into some of the alternatives available - each offers a different look and feel, but it is a start to get you on some research into what type of fence would best suit your home. Here are some of the eco-friendly fencing materials we have found: Brushing up - made from the small straight stems of the broad-leaved ti-tree plant, brush fences are aesthetically pleasing and relatively easy to fit to your surroundings. The ti-tree stems are often left in their natural state and combined with painted plinths and cappings. Flavours of the orient - bamboo shoots bound together make exceptional fences, noted for their sustainability, easy installation, durability and pleasing appearance. A lot of available bamboo is imported from overseas, so if you've got the shoots in your sights, try to source some from an Australian harvester. On the way back around - fences made from recycled fibres like plastics, wood and wheat straw, are becoming more common, creating a fence that has the appearance of wood, but without needing the preservatives and maintenance. Lumber support - apart from being environmentally friendly, reclaimed wood will often be stronger than newer woods available on the market today. Hedging your bets - if you don't have a dog to keep within the yard, thick plants grown around a frame are a good way to obscure the view from the outside, giving you some privacy with a living, natural fence. Talk to your local horticulturist or council to find the best types of plants to grow in your area. Top 5. Stirring things up Too many cooks may spoil the broth, but the cook who runs off to answer the phone may also ruin the soup. Stirr, the automatic stirrer from uutensil, takes the hassle out of preparing meals that need constant stirring attention - simply place it `legs down' into a saucepan, push the button and watch it stir things up. Or run to answer the phone, knowing your soup, sauce, gravy or custard won't be sticking to the bottom in your brief absence. Top 6. For sale - by photo One of the first things a prospective buyer will see of your house is photos, so it is a good idea to take the time and effort to ensure it is shown off to best advantage. They should be clear, well-presented and make your house look instantly attractive. Good photos need a little preparation, so first take a walk around the house and choose the right angle to present its best features. Clear away any clutter and add a few accessories such as a vase of flowers (or a bowl of fruit in the kitchen). If there is a great view from one of the windows, or a garden area beyond glass doors, include it as part of the room, if possible. Frame it using the fittings (open the curtains wide) and by angling the furniture so that the eye is led beyond the room. Have a professional take the photos and be prepared to repeat the exercise a few times before you get them right.

Latest Property News from Ted Hanson

Friday 24 April 2009 This Saturday we celebrate the Anzacs... A Tribute to ANZAC Day With their hair a little whiter, their step not quite so sure Still they march on proudly as they did the year before. Theirs were the hands that saved us, their courage showed the way Their lives they laid down for us, that we may live today. From Gallipoli's rugged hillsides, to the sands of Alamein On rolling seas and in the skies, those memories will remain. Of airmen and the sailors, of Lone Pine and Suvla Bay The boys of the Dardenelles are remembered on this day. They fought their way through jungles, their blood soaked desert sands They still remember comrades who rest in foreign lands. They remember the siege of old Tobruk, the mud of the Kokoda Trail Some paying the supreme sacrifice with courage that did not fail. To the icy land of Korea, the steamy jungles of Vietnam And the heroic battle of Kapyong and that epic victory at Long Tan. Fathers, sons and brothers, together they fought and died That we may live in peace together, while at home their mothers cried. When that final bugle calls them to cross that great divide Those comrades will be waiting when they reach the other side. Written by Ken Bunker 1. Why do Aussies invest in property? Australian investors see property as a safe form of investment in the long term, according to a new study. The study, released this week by the Australian Housing and Urban Research Institute (AHURI), indicates that the choice to invest in property, rather than some other area of investment is not always definitive; in practice, most of the property investors interviewed also invest in other areas, mainly shares. Read More... Australian investors see property as a safe form of investment in the long term, according to a new study. The study, released this week by the Australian Housing and Urban Research Institute (AHURI), indicates that the choice to invest in property, rather than some other area of investment is not always definitive; in practice, most of the property investors interviewed also invest in other areas, mainly shares. It is not an either/or decision for many people. However, shares are generally seen as being of a different (ie, lower) order and scale to property, and are treated accordingly. "It also transpires that many investors have previously lost money in shares, and are not keen to repeat the experience", report authors wrote. Regardless of whether they have owned shares or not, there are several reasons behind investors' choice to invest in property over other forms of investment. The most crucial perception is that it represents a good (long-term) investment, with a sense of `low risk' and `guaranteed' return. Most investors have identified `long-term investment' or `capital gains' as the most important reason for having invested in property. A related significant factor is that investors report feeling `comfortable' with property: it is safe, stable, and familiar (particularly when compared with shares). Indeed, sentimentality and informality appear to be important, for property is widely regarded as something relatively easy to invest in (not mysterious or complex like some other investments), with the general impression that `lots of people do it'. AHURI's Final Report No. 130, Understanding what motivates households to become and remain investors in the private rental market, is the concluding output of a research project examining the motivations, expectations and experiences of rental property investors, and analysing the implications of investment motivations and behaviours for the future of lower rent housing. The report is available for download from the AHURI website. Top 2. Construction still falling: Australian PCI® A lack of new projects meant that the national construction industry continued to decline in March, according to the latest Australian Industry Group - Housing Industry Association Australian Performance of Construction Index (Australian PCI®). The Australian PCI stood at 30.4 in March, up by 0.9 points but remaining below the key 50 points level separating expansion from contraction. Read More... A lack of new projects meant that the national construction industry continued to decline in March, according to the latest Australian Industry Group - Housing Industry Association Australian Performance of Construction Index (Australian PCI®). The Australian PCI stood at 30.4 in March, up by 0.9 points but remaining below the key 50 points level separating expansion from contraction. Australian Industry Group (Ai Group) Associate Director, Economics and Research, Tony Pensabene, said the March results show more evidence of a struggling construction industry as low market demand and tight credit conditions lead to on-going falls in activity. "However, there is an easing in the pace of the industry's contraction, reflecting slower rates of decline in the house building, apartments and commercial construction sectors", Mr Pensabene said. He added that a notable improvement has been evident in the considerable easing in the rate of contraction in house building activity since late 2008 on the back of lower interest rates and the increase to the first home owners grant. "In addition, the sizeable moderation in the level of contraction in apartment building activity in March, follows the recent upturn in approvals for the sector, and may provide an early sign of firmer investor demand, although it is a volatile segment of the building market," Mr Pensabene said. The full report is available for download from the AI Group website. Top 3. Building value rises New residential building work rose in value in the year to December 2008, according to figures released this week by the Australian Bureau of Statistics. Read More... New residential building work rose in value in the year to December 2008, according to figures released this week by the Australian Bureau of Statistics. Renovations, however, dropped in both the December quarter and over the year. Seasonally adjusted, the value of new residential work done fell 1.8 per cent to $8,777.0m in the December quarter 2008, down from the previous quarter. This was a rise of 2.9 per cent from the December 2007 quarter. Work done on new houses fell 1.0% to $6,143.6m, while new other residential building fell 3.8%, to $2,633.4m. Alterations and additions fell 3.9%, to $1,583.9m in the December quarter, down 3 per cent from the year before. Top 4. Buyers putting trust in friends and family Keen to take advantage of the current market advantages, yet faced with stricter lending criteria, Australia's potential buyers are increasingly looking for ways to secure finance approval sooner, a new report shows. According to the 2009 First Homebuyers Survey commissioned by broker Mortgage Choice, a number of Australians are turning to property co-ownership and joint-borrowing options to secure their home loan. Read More... Keen to take advantage of the current market advantages, yet faced with stricter lending criteria, Australia's potential buyers are increasingly looking for ways to secure finance approval sooner, a new report shows. According to the 2009 First Homebuyers Survey commissioned by broker Mortgage Choice, a number of Australians are turning to property co-ownership and joint-borrowing options to secure their home loan. Mortgage Choice Senior Corporate Affairs Manager, Kristy Sheppard said that sharing mortgage commitments with one or more people may ease the challenge of applying for and repaying a mortgage. "Plus, it often enables buyers to enter the market with a higher borrowing capacity and increased security around home loan serviceability", she added. "Since lenders removed 100 percent loans from the market and limited the maximum lending per borrower to a 90 to 95 percent loan-to-value ratio or lower, we are witnessing a return to the `old days', when a loan approval relied, in part, on an upfront deposit built from genuine savings". The survey shows that 5% of people planning to buy their first home this year will do so with family. Of those buying with parents, 65% will joint purchase, 20% will receive a monetary gift to help raise adequate deposit and 15% will have parents act as loan guarantor, helping to bridge the upfront deposit and expenses gap plus eliminating the need for lenders mortgage insurance. Over 1% nationally will buy with friends (over 2% in SA and WA). Not surprisingly, more Australians are expressing interest in purchasing their first property with people with whom they are unrelated, such as a friend or property syndicate, as a means to potentially enter the market sooner. This often increases their borrowing power and shares the financial responsibility. "It makes sense that an increasing number of buyers are considering collaborating with parents and friends for additional security with their mortgage, especially in the current economic climate," Ms Sheppard said. "If potential buyers are eager to take advantage of today's `buyer's market' but have a smaller deposit or a lower income than needed for a loan approval, they should be aware of available loan options that could help their situation. "Visiting a reputable mortgage broker is a great place to start researching different options, as is the internet. Don't be afraid to utilise social networking websites or online forums to speak first-hand to current property owners about the pros and cons of their loan decisions". "Of course, entering into a financial commitment with friends or family can stretch the boundaries of a relationship. Seeking independent legal and financial advice prior to signing a loan contract is very important. All parties must fully understand their rights and obligations to the loan and it is sensible to have agreements in writing before proceeding. Top 5. Less is Best If you're selling a property the golden rule is, "less is best." This means taking clutter off shelves, clearing kitchen bench tops, taking excess books off shelves, removing large pieces of furniture and if you have collections, such as art or memorabilia, packing them away. Think of it this way, you'll be moving anyway so you might as well start clearing the decks. Remember, buyers want to see themselves in your home, not you! Top 6. Council meetings in your living room Australian councillors, planners and ratepayers now have a common ground on which to meet to discuss current issues - an online community forum. According to its publicity, Bang the Table is an "independently moderated space for discussing public policy". The idea behind it is to host discussions for public policy organisations that recognise the value of community input to their decisions. For example, there are currently ongoing discussions on the site relating to Hornsby Shire's Housing Strategy and the introduction by the Blue Mountains City Council of 8 trial `dog off-leash' sites. Bangthetable.com's director, Matthew Crozier, says the site only hosts discussions for decision-makers, which is useful to government officials who can use it to judge the heat and depth of an issue within a community. Is your community participating?

Latest Property News from Ted Hanson

The Oyster There once was an oyster whose story I tell, who found that some sand had got into his shell. It was only a grain, but it gave him great pain, for oysters have feelings although they're so plain. Now, did he berate the harsh workings of fate that brought him to such a deplorable state? Did he curse at the government, cry for election, and claim that the sea should have given him protection? No - he said to himself as he lay on a shell, since I cannot remove it I shall try to improve it. Now the years have rolled around, as the years always do. and he came to his ultimate destiny, a stew. And the small grain of sand that had bothered him so, was a beautiful pearl all richly aglow. Now the tale has a moral, for isn't it grand< what an oyster can do with a morsel of sand? What couldn't we do if we'd only begin, with some of the things that get under our skin? 1. Home lending on the way up February marked the fifth consecutive month of home loans increasing, according to figures released this week by the Australian Bureau of Statistics (ABS). Over the month the total number of loans increased by 0.4 per cent as a result of a 2.6 per cent rise in loans for construction and a 4.2 per cent lift in loans for the purchase of new dwellings. Read More... February marked the fifth consecutive month of home loans increasing, according to figures released this week by the Australian Bureau of Statistics (ABS). Over the month the total number of loans increased by 0.4 per cent as a result of a 2.6 per cent rise in loans for construction and a 4.2 per cent lift in loans for the purchase of new dwellings. Lending for new homes has been rising since October 2008, driven by the continued reduction in variable mortgage rates and the tripling of the First Home Owners Grant for new dwellings. In seasonally adjusted terms, the Australian Capital Territory saw the biggest leap, with a rise of 12.4 per cent in the number of loans for existing and new dwellings. Other states to record an increase were Tasmania (1.9 per cent), New South Wales (0.3 per cent) and Victoria (up 0.5 per cent). The number of loans fell by 3 per cent in Queensland, by 0.4 per cent in each of South Australia and Western Australia and 3.1 per cent in the Northern Territory. Top 2. The playing field is changing There has been a significant change in the home lending marketplace, with many smaller lenders exiting and the larger banks taking measures to ensure borrowers do not go into financial stress, according to a new mortgage industry report. The joint J.P. Morgan/Fujitsu Consulting Australian Mortgage Industry Report (Volume 9, October 2008) also urges first home buyers to be cautious about the size of the debt they enter into, in the light of the current economic situation. Read More... There has been a significant change in the home lending marketplace, with many smaller lenders exiting and the larger banks taking measures to ensure borrowers do not go into financial stress, according to a new mortgage industry report. The joint J.P. Morgan/Fujitsu Consulting Australian Mortgage Industry Report (Volume 9, October 2008) also urges first home buyers to be cautious about the size of the debt they enter into, in the light of the current economic situation. Martin North, Fujitsu Consulting's Managing Director said that the share of business written through the non-banks and smaller players has reduced significantly. "The four major banks now have the lion's share of new business, thanks to the flight to quality we have seen in the last six months; the announcement of potential help from the Big Four for people who may become unemployed will reinforce this trend", North said. "Indeed, they have been struggling to process all the new applications because of the increased volumes from refinancing transactions and first time buyers." Mr North added that the Deposit Guarantee has enabled players to raise capital through significant bond issues and keep margins at respectable levels. The report cautioned first home buyers using the current low interest rate environment and government stimulus as a means to enter home ownership to consider: Interest rates will inevitably go up again; First home buyers typically have a higher initial LVR (Loan to Value Ratio), therefore are highly sensitive to any future rise in interest rates; and The outlook for income growth to absorb future increases in interest rates is poor. J.P. Morgan's Scott Manning commented that the banks themselves recently acknowledged these dynamics by introducing a range of measures to reduce initial LVRs and increase required saving rates. "Further, with limited refinancing or exit options available to stressed households as lenders withdraw from the housing market, we have recently seen more action being taken to avoid forced home sales via the escalation of awareness being drawn to repayment holidays of up to 12 months," Manning said. Top 3. Men still earning more The gender divide in Australia has narrowed over the past 20 years but there is much more to be done, according to the latest AMP.NATSEM Income and Wealth Report `She works hard for the money'. In fact, a man still has the potential to earn $2.4 million over a lifetime compared to a woman who earns nearly $1 million less! Read More... The gender divide in Australia has narrowed over the past 20 years but there is much more to be done, according to the latest AMP.NATSEM Income and Wealth Report `She works hard for the money'. In fact, a man still has the potential to earn $2.4 million over a lifetime compared to a woman who earns nearly $1 million less! The 22nd AMP.NATSEM report focuses on women today, how their social and economic status has changed and evolved over time, and what differences can be seen between them and their male counterparts. The report found that women have gained substantial ground, particularly in areas of education and employment, but large gaps still exist between men and women in both paid and unpaid work and areas of wealth, income and superannuation. Baby Boomer women have the highest wage gap of all generations of 13 per cent. Gen X women have a lower wage gap of around 3.5 per cent while the wage gap for Gen Y women is almost non-existent at 0.6 per cent. AMP Financial Services Managing Director Craig Meller said that Gen Y is the first generation where the wages of women are almost on par with men. "While the gender divide has narrowed, particularly for Gen Y, the risk remains that as these women progress through their careers, particularly during their child rearing years, they will still face the same dilemmas and glass ceilings as their Baby Boomer mothers," Mr Meller said. "So while much progress has been made, this report tells us that there is still more work to be done to narrow the gender divide, particularly in the child rearing years, so that when women leave and re-enter the workforce they don't fall behind their male counterparts." The report findings show that while more women are working (workforce participation increased 10 per cent to 58.2 per cent in the 20 years to 2008) they face an ever-increasing juggling act, struggling to balance two kids, a household and a career. Women employed full-time with children spend 78 hours a week in paid and unpaid work compared to full-time men with children who work 74 hours a week. These women are spending on average 15 hours a week cooking and cleaning while the men are spending only six hours a week on these tasks. Top 4. Bigger, fresher, uncut Questions arise for all gardeners from time to time, whether novices or seasoned pros. So what happens if a question falls in the garden and no one is around to hear it? Read More... Questions arise for all gardeners from time to time, whether novices or seasoned pros. So what happens if a question falls in the garden and no one is around to hear it? The ABC's Gardening Australia Expo hits the road this month, offering willing ears for all those fallen questions, along with information, inspiration and entertainment, and the very latest in garden and outdoor products and plants. Queenslanders can check out the expo in Brisbane this week, 17th-19th April at RNA Showgrounds, Bowen Hills. Sydney and Melbourne have to wait a little longer - until the end of August and October, respectively. Top 5. Real property or personal property? When selling or buying your home, make sure you understand exactly what is being sold along with it. The general rule is, if it is attached to the structure or the ground, it is real property and stays with the house. But this can be confusing. So if you want to make sure an item remains in the house, list it specifically in the contract. It's better to do this than "assume" anything and, of course, if you have any questions about inclusions seek confirmation from your legal representative. Top 6. Like walking on (clean) air It's hard to imagine walking on plastic milk bottles, but that's exactly what you could be doing if you built your balcony using a new range of decking boards that are made from recycled milk containers and non-virgin pine products. According to the company's website, a metre of ModWood decking board contains approximately 37 recycled plastic milk bottles and around two kilograms of reclaimed pine dust (a by-product of timber milling). Not only does the product put to good use recycled and waste products that would otherwise be squandered, potentially ending up as landfill, but it is made without the use of formaldehydes, so there are no chemical emissions. Top

Latest Property News from Ted Hanson

You should be connected to the internet to read this message.

To view online click here

If you are having trouble reading this newsletter, use a larger font size (click "View" → "Font Size")

• Open for Inspection - Units/Villas/Townhouses
• Open for Inspection - Houses
• Our Team

Friday 10 April 2009 Easter eggs for borrowers' baskets… Wishing you all the best for the break! In the news this week, the Reserve Bank offers up a seasonal treat, and a bright idea floods through some old rusty pipes... 1. Why rent when it's time to buy? The current economic environment has created the best conditions in more than ten years for renters to become homeowners, according to a report released this week. At a time of escalating rental costs, the introduction of the First Home Owner's Grant Boost Scheme (FHOGBS) together with record low interest rates has significantly reduced the cost of buying compared with renting a home. Read More... The current economic environment has created the best conditions in more than ten years for renters to become homeowners, according to a report released this week. At a time of escalating rental costs, the introduction of the First Home Owner's Grant Boost Scheme (FHOGBS) together with record low interest rates has significantly reduced the cost of buying compared with renting a home. The latest QBE LMI Half Yearly Property Update (researched by BIS Shrapnel) shows that by June 2009, the cost of renting in Sydney and Melbourne will be closer to the cost of paying off a median priced house than at any other time in the last decade, with weekly median rents over 66 per cent as a proportion of median home loan repayments .The ratio in Canberra, Brisbane and Perth is expected to approach 80 per cent and 75 per cent in Adelaide.   Ian Graham, Chief Executive Officer of QBE LMI said that while there is significant uncertainty in relation to employment, an increasing number of first home buyers who are confident about the future have decided the time is right to take advantage of government incentives, low interest rates and attractive housing prices. "The incentive for first home buyers to enter the market has never been stronger", Mr Graham said. "FHOGBS has helped first home buyers to get over the deposit hurdle and is driving new lending enquiry/home loan approvals to record numbers". The report shows that the situation is also improving for the investor. "According to our research, conditions for investors are at their best since the late 1990s with a differential between yields and interest rates estimated at 2 per cent in the March Quarter 2009", Mr Graham said. "Our report shows that through 2009 and into 2010, investor sentiment toward residential property is expected to increase significantly." Top 2. RBA cuts rates to 3 per cent The Reserve Bank placed a nest egg in borrowers' baskets this week, with another cut in the Official Cash Rate, taking it to a 49-year low 3 per cent. The move came as a surprise to many analysts. The ABC reported earlier this week that in a poll conducted by Reuters, 13 of the 21 economists polled thought the Board would keep the cash rate on hold for the second consecutive month. Read More... The Reserve Bank placed a nest egg in borrowers' baskets this week, with another cut in the Official Cash Rate, taking it to a 49-year low 3 per cent. The move came as a surprise to many analysts. The ABC reported earlier this week that in a poll conducted by Reuters, 13 of the 21 economists polled thought the Board would keep the cash rate on hold for the second consecutive month. Reserve Bank Governor Glenn Stevens said in a statement that while Australians' debt servicing burdens have been reduced considerably, the global economy looks set to remain in the doldrums and this is likely in turn to affect the buoyancy of economic activity in Australia. "The stance of monetary policy, together with the substantial fiscal initiatives, will provide significant support to domestic demand over the period ahead", Governor Stevens said. Top 3. No rest for dodgy cots Cots that have faulty drop sides have been the subject of a national recall this week, the Australian Competition and Consumer Commission (ACCC) has announced. ACCC Deputy Chairman, Peter Kell said there is a nationally adopted mandatory safety standard for household cots which has specific requirements to ensure that the drop side of a cot works correctly and the filler bars remain in place with constant use. Read More... Cots that have faulty drop sides have been the subject of a national recall this week, the Australian Competition and Consumer Commission (ACCC) has announced. ACCC Deputy Chairman, Peter Kell said there is a nationally adopted mandatory safety standard for household cots which has specific requirements to ensure that the drop side of a cot works correctly and the filler bars remain in place with constant use. "When the drop side fails, infants can easily fall out of the cot and suffer serious injuries to their head and limbs", Mr Kell said. Fair trading agencies in Queensland, South Australia and Western Australia have had increasing numbers of reports about drop sides of wooden cots that fall apart during normal use. By July 2010, Australia will have a single national product safety law and harmonised product safety mandatory standards and bans across the country.  The ACCC and state and territory consumer protection departments will work together to enforce these laws. Consumers and suppliers are encouraged to check the working order of wooden household cots and immediately report any with drop sides that fail to the ACCC by calling the Infocentre on 1300 302 502. Details of the recall are available at www.recalls.gov.au.%SelStart%%SelEnd% Top 4. Approvals get the nod February saw a dramatic turnaround in building approvals, especially for apartments, according to figures released this week by the Australian Bureau of Statistics. Total building approvals, seasonally adjusted, increased by 7.8 per cent in February 2009, the first rise since June 2008. Read More... February saw a dramatic turnaround in building approvals, especially for apartments, according to figures released this week by the Australian Bureau of Statistics. Total building approvals, seasonally adjusted, increased by 7.8 per cent in February 2009, the first rise since June 2008. The number of private sector houses approved rose just 0.1 per cent, while the estimate for multi-unit dwellings approved rose 34.1 per cent following a revised fall of 17.0 per cent in January. The number of seasonally adjusted residential dwelling approvals increased in the month of February in New South Wales (+18.6 per cent), Victoria (+5.3 per cent), South Australia (+3.9 per cent), Western Australia (+19.9 per cent), and Tasmania (+1.6 per cent). Approvals fell by 5.9 per cent in Queensland and were down in trend terms by 5.1 per cent in the Northern Territory and by 1.2 per cent in the Australian Capital Territory. Top 5. Tapping into a bright idea Plumbing pipes may have found a new place in the home. Designers from Tel Aviv have shone some new light on (or out of) old metal faucet pipes, creating lamps that look more like robot creatures from a sci-fi flick. Lamps in the KOZO lighting series are made with refitted galvanized iron plumbing pipes from around the world, light bulbs have been wired in ready to be turned on and off with the twist of a tap (made to function as a switch). Top

> In This Issue... Why rent when it's time to buy? RBA cuts rates to 3 per cent No rest for dodgy cots Approvals get the nod Tapping into a bright idea   3 Brownlee St, Mangerton $895,000 Lake Heights - Great Size Blocks of Land Starting from $145,000 3/47 Hillcrest St, Wollongong $339,000 > Contact Us Ted Hanson Phone: 02 4229 5344 Fax: 02 4229 7202 98 Market Street Wollongong NSW 2500 email us   > Mail to a friend... Know someone who likes to keep up to date with the latest in property news? Click here, enter their email address and they will receive a copy of this issue and be given the opportunity to subscribe to future issues.

©Copyright (c) Quartile Research. All Rights Reserved.

This email was sent to thanson4.southernestates@blogger.com. If you wish to stop receiving this newsletter at any time you can unsubscribe from it by clicking here.

Quartile Research and Ted Hanson take no responsibility for the accuracy of this information. Please read the Disclaimer and Terms of Use.

• Open for Inspection - Units/Villas/Townhouses
• Open for Inspection - Houses
• Our Team

Do you twitter?

Latest Property News from Ted Hanson

Friday 03 April 2009 Gandhi's Shoe As Gandhi stepped aboard a train one day, one of his shoes slipped off and landed on the track. He was unable to retrieve it as the train started rolling. To the amazement of his companions, Gandhi calmly took off his other shoe and threw it back along the track to land close to the first shoe. Asked by a fellow passenger why he did that, Gandhi replied, 'the poor man who finds the shoe lying on the track will now have a pair he can use.' 1. Safe as houses The housing market in Australia, although subdued, has held up well and should continue to do so because of borrowers' ability to service their loans, according to the Reserve Bank (RBA). In a speech to the Urban Development Institute of Australia in Brisbane this week, Deputy Governor Ric Battellino remarked that while prices have fallen on average by 3 per cent across Australia, this is soft compared with countries such as the US and the UK, where prices have fallen in the order of 20 per cent. Read More... The housing market in Australia, although subdued, has held up well and should continue to do so because of borrowers' ability to service their loans, according to the Reserve Bank (RBA). In a speech to the Urban Development Institute of Australia in Brisbane this week, Deputy Governor Ric Battellino remarked that while prices have fallen on average by 3 per cent across Australia, this is soft compared with countries such as the US and the UK, where prices have fallen in the order of 20 per cent. "We continue to believe that the market here will hold up better than overseas", Battellino said. "There are a number of reasons why this is likely to be so, but perhaps the most important is that we did not have the same deterioration in lending standards that occurred elsewhere. "By and large, the great bulk of Australians who took out housing loans have been able to afford the repayments. "Notwithstanding some rise over the past year, the 90-day arrears rate on housing loans is only 0.5 per cent, which is broadly in line with its long-run average and well below that in countries such as the US and UK. On an average mortgage, loan repayments are now $7,000 a year less than they were six months ago. "This is a very large reduction, equal to about 8 per cent of average household income", he stated. Mr Battellino said that the majority of households have elected not to spend the money that has been freed up, choosing instead to maintain high repayments and move ahead of schedule in repaying their loans. "This will give them breathing space if they do subsequently find themselves in circumstances where their repayments are interrupted", he suggested. Top 2. Australian house prices resilient Australia's residential property market may experience some weakness over the next twelve months, but will remain resilient, according to a new quarterly report released this week by ANZ Economics. The Bank's Property Outlook March 2009 reports that since peaking in early 2008, the national median house price has fallen by 3.9 per cent and weak sentiment, a deteriorating economic environment and rising unemployment present further downside risks. Read More... Australia's residential property market may experience some weakness over the next twelve months, but will remain resilient, according to a new quarterly report released this week by ANZ Economics. The Bank's Property Outlook March 2009 reports that since peaking in early 2008, the national median house price has fallen by 3.9 per cent and weak sentiment, a deteriorating economic environment and rising unemployment present further downside risks. "However, there remain strong reasons to expect that we will avoid a US-style house price collapse", say report authors. "Principal among these is the significant, pre-emptive and effective policy action taken to date, plus the fact that unlike our developed world counterparts, Australian policy authorities have ample ammunition in store should further stimulus be required." Since August last year, the Reserve Bank has cut the official cash rate by a massive 400 basis points. Of this, 375 basis points have been passed through to the standard variable mortgage rate for new and existing mortgage holders. In contrast, over the period to December, US authorities cut official rates by 500 basis points with only just 15 basis points flowing through to existing borrowers. The relative potency of monetary policy in Australia and the resultant dramatic improvement in Australian housing affordability will be key factors supporting house prices in the year ahead, says the report. In stark contrast with the oversupplied US housing market, the ongoing tightening of the Australian housing demand/supply balance will also provide substantial support to prices and (eventually) building activity. The extension to the first homebuyer grant has boosted demand at the lower end of the market while tight rental conditions, rising rents and improved yields will increasingly encourage new homebuyers and investors back into the market. ANZ's Economics Team predicts that with further official rate cuts expected, home borrowers should be able to access mortgage interest rates of less than 5 per cent by the middle of the year (a far cry from the standard variable rate of 9.6 per cent in August last year). "Combined with rising property yields, this will see positive gearing opportunities emerge for residential investors. "Moreover, ongoing volatility and uncertainty in global equity and other asset markets will further highlight the relative security of the Australian housing sector. "In contrast, with sub-prime mortgages representing just over 1 per cent of the Australian market (compare a peak of over 15 per cent in the US) and full recourse lending, mortgage delinquencies and foreclosures remain at historically low levels and a lack of forced sales provides considerable downside protection to house prices. The authors conclude by saying that, on balance, though risks remain to the downside, they still believe Australian house prices will experience a relatively soft landing. "Peak to trough, we expect the median national house price to fall by around 6 per cent, which while significant, pales next to the 50 per cent+ (and counting) collapse in equities", they predict. Top 3. Cheaper renovations on the horizon Renovation costs in Australia are expected to drop considerably in the next six months, an architectural body predicted this week. A recent quarterly cost guide from Archicentre, the building advisory service of the Australian Institute of Architects, shows that residential building construction costs have not changed appreciably in the last quarter. Read More... Renovation costs in Australia are expected to drop considerably in the next six months, an architectural body predicted this week. A recent quarterly cost guide from Archicentre, the building advisory service of the Australian Institute of Architects, shows that residential building construction costs have not changed appreciably in the last quarter. General Manager of Archicentre David Hallett expects this to change, however, as a substantial slowdown in the planning of new commercial projects around Australia will see many tradespeople moving from commercial to residential over the next six months. "This will result in more competition in the new home and renovation markets and we could see a drop in the costs of custom designed homes and renovations of 5 per cent to 15 per cent in some states," David Hallet said. "Coupled with rapidly reducing interest rates we are seeing the best climate for residential construction for many years," Mr Hallet added. The Archicentre cost guide is a free guide to help homeowners who are either renovating or building new homes assess quotes to ensure they are getting a reasonable price. For new house and major renovations, the cost structure is approximately as follows: Materials - 46 per cent Labour - 33 per cent (this can rise a further 5-15 per cent in country areas). Fees, levies, permits, GST - 21 per cent Mr. Hallett said that whilst construction costs will come down, the savings could be soon wasted by poor planning and failing to obtain competitive prices. "Some renovators are paying between 60 per cent to 80 per cent more for their renovations because they have poorly planned renovations and fail to tender their projects. Australians on average spend $7 billion a year on major renovations. "Once you add the cost of interest onto the amount over the normal period of a home loan, the amount lost can run into tens of thousands of dollars on the average renovation of around $100,000. Mr Hallett said that one of the biggest mistakes people make is to get a quote only on the structural part of the renovation failing to recognise that around 50% of the cost is to be found after lock up in fittings and finishing. "Whilst tendering provided a good guide to the cost of the project choosing the cheapest quote was not necessarily the right decision. "It is also vital that the builders' credentials are checked out to ensure they are registered, have appropriate insurance, are able to show examples of their work and importantly are able to complete the project on time. "Tendering is not rocket science, it is carefully documenting and specifying the entire project so everything can be costed accurately and planned. "For the builder the provision of tender documents including the type of contract to be used and the specification of fittings and finishes provides an opportunity to provide an accurate costing. "A contract also includes dispute resolution processes and is a major step in limiting the legal disputes which can arise if there is not accurate paperwork", he concluded. Top 4. New homes continue good run Sales of new home sales improved again in February, particularly in Queensland and New South Wales, according to the latest survey by the Housing Industry Association (HIA). Read More... Sales of new home sales improved again in February, particularly in Queensland and New South Wales, according to the latest survey by the Housing Industry Association (HIA). Total new home sales increased by 3.9 per cent in February 2009. Detached home sales increased by 4.7 per cent in the month, to be up by 8 per cent over the three months to February. Pre-contract sales of apartments and home units fell for the fifth consecutive month in February (down 3.4 per cent). Sales of detached new homes increased by 21.7 per cent in Queensland and were up by 11.1 per cent in New South Wales and by 4.2 per cent in Western Australia. Sales fell moderately in Victoria, down by 5.6 per cent following a 24 per cent lift over the previous two months. Sales fell by 3.9 per cent in South Australia after a jump of 25 per cent in January. Detached home sales were up over the three months to February 2009 in New South Wales, Victoria and South Australia. Top 5. America's most expensive house Even in death, Aaron Spelling's legacy is still causing a stir. The notorious American, who holds a record as the most prolific television producer, notched up another record recently when his widow Candy Spelling put their 4.7acre Holmby Hills residence on the market. With a price tag of over AU$220M, it immediately became the most expensive residential listing within the US. The LA Times reports that "The Manor" - which looks like a French chateau and is slightly larger than the White House - isn't just the most expensive house, it's also the largest in LA. Among the list of extravagances are a grand foyer, library, gym, media room, gift-wrapping room, wine cellar with tasting room and a parking lot that can accommodate 100 vehicles. Top 6. Kitchen-safe recipe book Some people have an innate ability to construct culinary masterpieces with no recipe in sight. On the other side of the coin, collections of recipes can consume books and shelves, taking up space and often not ever being used. The Demy is a `kitchen-safe' digital recipe reader with a high-resolution colour touchscreen that stores all your own recipes, and plugs into your computer meaning you can fill it to the brim with others you find. Small and splash resistant (so you can keep it on hand while cooking), it features cooking timers, a conversion tool, and a list of ingredient substitutions so you don't have to run to the store mid-way just because you forgot one thing on the list. Top

3 Brownlee St, Mangerton $895,000 Lake Heights - Great Size Blocks of Land Starting from $145,000 3/47 Hillcrest St, Wollongong $339,000