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| 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?
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 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." 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. 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. 3. No rest for dodgy cots
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. 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% 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. 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 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. 5. Tapping into a bright idea
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). | > Contact 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. |
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.
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.
Plumbing pipes may have found a new place in the home. 
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