If Only We Believe... To believe is to know that every day is a new beginning.
It is to trust that miracles happen and dreams really do come true.
To believe is to see angels dancing among the clouds, to know the wonder of a stardust sky and the wisdom of the man in the moon.
To believe is to know the value of a nurturing heart, the innocence of a child's eyes and the beauty of an aging hand, for it is through their teachings we learn to love.
To believe is to find the strength and courage that lies within us when it is time to pick up the pieces and begin again.
To believe is to know we are not alone, that life is a gift, and this is our time to cherish it.
To believe is to know that wonderful surprises are just waiting to happen, and all our hopes and dreams are within reach . . . if only we believe.
Author Unknown
1. Who's helping with the mortgage? ASIC, in conjunction with Consumer Affairs Victoria (CAV), has released a report examining how lenders and mortgage brokers respond to borrowers experiencing financial difficulties. The report, Helping home borrowers in financial hardship (REP 152), found that while some lenders are responding well to the needs of their customers, there is generally room for improvement. ASIC, in conjunction with Consumer Affairs Victoria (CAV), has released a report examining how lenders and mortgage brokers respond to borrowers experiencing financial difficulties. The report, Helping home borrowers in financial hardship (REP 152), found that while some lenders are responding well to the needs of their customers, there is generally room for improvement. The report provides guidance to industry on how to improve practices. ASIC's Senior Executive Leader, Deposit takers, credit and insurance providers, Greg Kirk said the report highlights the importance of industry taking an active role in dealing with hardship. "With forecasts of growing unemployment, we can expect to see increasing numbers of borrowers experiencing mortgage stress," Mr Kirk said. "In many cases, however, financial difficulties will be temporary, allowing problems that arise to be resolved." Mr Kirk stressed the importance that lenders and intermediaries have processes and procedures in place to provide constructive responses to financial hardship. These include procedures to identify customers in hardship, to provide clear and timely information to customers on their right to seek relief and to engage sufficiently with a customer's circumstances in order to provide appropriate and flexible assistance. The report found that: * Information about financial hardship is usually only provided following payment default, making it very difficult for borrowers to take positive action at an early stage. Equally concerning, this information is often insufficient for borrowers to understand their options and make informed choices; * Some lenders do very little to identify borrowers who may require hardship assistance. Many lenders leave this identification of need to collection officers who may not be trained for the purpose. For example, one lender only identifies hardship where the borrower raises the need for assistance themselves; * Lenders appear to prefer offering short-term assistance, such as a three-month payment moratorium, rather than genuinely engaging with, and responding to, a borrower's specific situation. For example, a home loan borrower who has lost income through reduced overtime may need their loan to be extended with lower repayments over a longer period. In such circumstances, a short moratorium is a very temporary fix, leaving the borrower likely to default when repayments resume; * Some lenders have adopted policies that are inconsistent with the rights and remedies available to borrowers under the Uniform Consumer Credit Code. For example, by refusing hardship assistance once payments are more than 60 days overdue or limiting any variation in repayments to a maximum period of six months; and * Despite clear industry standards mortgage brokers generally have a limited understanding of their role in responding to financial hardship. While most brokers say they offer assistance, there is little evidence of formal policies and procedures to ensure it is done effectively or constructively. Mr Kirk said this report examined industry practices as at late 2008 and there are already moves within some sectors to improve. On 5 April 2009, the Federal Treasurer announced an agreement with the four major banks wherein they commit to assist borrowers who are experiencing financial difficulty as a result of the global recession. "ASIC is confident industry will welcome the guidance provided by the report, and we'll continue to work with them to promote better outcomes for borrowers," he said. "Helping home borrowers in financial hardship' also provides guidance for borrowers. Further information for borrowers is also available on ASIC's consumer website, FIDO." 2. Housing results show policy success  Building approvals increased for the second consecutive month in March 2009, the first time this has occurred since late 2007, the Housing Industry Association said this week.
HIA Chief Economist, Dr Harley Dale said that the modest turnaround in building approvals figures highlights the success that government policies, such as the boost to the First Home
Owners Grant, have had in supporting economic activity and employment. Building approvals increased for the second consecutive month in March 2009, the first time this has occurred since late 2007, the Housing Industry Association said this week. HIA Chief Economist, Dr Harley Dale said that the modest turnaround in building approvals figures highlights the success that government policies, such as the boost to the First Home
Owners Grant, have had in supporting economic activity and employment. "Evidence has emerged over 2009 to date of a recovery in a range of leading housing indicators, albeit a recovery of modest proportions in the case of building approvals," said Harley Dale. "This evidence proves the worth of continuing to look at policies to stimulate the residential sector as clearly such policies have a positive impact on construction, employment, and on the demand for manufactured products," he said. Total building approvals increased by 3.5 per cent in March 2009 due to a 3.4 per cent rise in detached house approvals, the fourth increase in a row, and a lift of 4 per cent in non-house building approvals, the second consecutive increase. Mr Dale said approvals were still down in the March 2009 quarter (-26 per cent on the March 2008 quarter) on account of the investor and trade-up buyer markets. The number of seasonally adjusted residential dwelling approvals increased in March in Victoria (+15 per cent), Queensland (+7 per cent), and South Australia (+4.9 per cent). The trend number of approvals increased in both the Northern Territory (+5.7 per cent) and the Australian Capital Territory (+1.7 per cent). The number of seasonally adjusted approvals fell by 7.2 per cent in New South Wales, 10.5 per cent in Tasmania, and 14.9 per cent in Western Australia. 3. $1 Farmhouse the tip of the iceberg With reports of home-buying incentives and dollar deals from all over the world, how do you tell a good deal from a heavy load? A two-storey farmhouse in the US has been advertised for sale for a dollar - the catch is the land isn't for sale, and the buyer must be able to afford to move the house away from its current location. The Washington Post reports that whoever buys the 230 square metre 1880s farmhouse will need to get permission from the town, the county and possibly the Virginia Department of Transportation. With reports of home-buying incentives and dollar deals from all over the world, how do you tell a good deal from a heavy load? A two-storey farmhouse in the US has been advertised for sale for a dollar - the catch is the land isn't for sale, and the buyer must be able to afford to move the house away from its current location. The Washington Post reports that whoever buys the 230 square metre 1880s farmhouse will need to get permission from the town, the county and possibly the Virginia Department of Transportation. The move is estimated to cost anywhere from $30,000 upwards, and it can't pass under traffic lights or power lines due to its size, meaning the buyer not only needs the money to finance the move, but also a good understanding of the approvals and processes involved.
Perhaps a little more than the $1 price tag suggests! 4. Home building recovery underway: BIS Shrapnel  Interest rate cuts and the First Home Buyer Boost Scheme are contributing to a rebound in housing demand, according to leading industry analyst and economic forecaster, BIS Shrapnel.
The company is forecasting a 10 per cent rise in dwelling approvals during the June quarter of 2009, as many upgraders who have sold their older properties to first homebuyers elect to buy a new house.
Interest rate cuts and the First Home Buyer Boost Scheme are contributing to a rebound in housing demand, according to leading industry analyst and economic forecaster, BIS Shrapnel.
The company is forecasting a 10 per cent rise in dwelling approvals during the June quarter of 2009, as many upgraders who have sold their older properties to first homebuyers elect to buy a new house. This is on the back of the increase in national dwelling approvals of seven per cent, in seasonally adjusted terms, seen over the three months to March 2009. BIS Shrapnel senior economist, Jason Anderson, expects there will be a sustained expansion in demand for new dwellings in 2009/10, even if grants for first home buyers are scaled back. "The evidence from Victoria is that upgrader demand is already recovering in that state,"
Anderson said. "And this source of sales should recover in other states due to attractive interest rates." Anderson added that it is important to note that housing demand has been very uneven across the states. "There have been very strong recoveries in dwelling approvals in Victoria and South Australia, which are up 22 per cent and 18 per cent respectively," he said. "This indicates that home buyers are responding rapidly to lower interest rates and higher grants, and it is evident that the 2008 house building downturn was most shallow in these states. "These states are also leading the national recovery over the first quarter of 2009." The reason for the markedly better performance by Victoria and South Australia is that residential land affordability in Melbourne and Adelaide is much better than in other cities. Attractive land prices will also mean that residential building in Victoria and South Australia will provide greater support for those economies during the recession. In other states, dwelling approvals in Queensland, Western Australia and Tasmania were marginally lower over the three months to March 2009. At the other end of the spectrum, approvals in New South Wales remain extremely low - March quarter 2009 approvals were the lowest, in seasonally adjusted terms, for any quarter on record. BIS Shrapnel notes that the continued decrease reflects the state's dependence on medium and high-density dwelling projects. In recent years Sydney home buyers have been driven towards medium and high density housing due to the relatively high price of residential land. Mr Anderson said the global financial crisis has made it much more difficult for developers to access credit, and the plunge in apartment projects has reduced this opportunity (apartments) for all households, including first home buyers. "The differing trends across Australia mean that extension of first home buyer grants into the second half of 2009 will be particularly important for New South Wales," he said. "Given the current difficulties for developers to get finance for medium or high-density unit/apartment development, many are not in a position to schedule additional construction." BIS Shrapnel believes the slow rate of home building in New South Wales requires special
attention from the State Government, given the very low rate of building even with the First Home Buyer Boost Scheme in place. The company warns that there is a substantial risk that New South Wales will be the laggard in the national economic rebound forecast for 2010. "Residential building is the traditional driver of recovery from recession, so it is vital that policy efforts are focused on this sector," he said. 5. Slithering out of a sale What's the last thing you'd want to see at a house inspection? While inspecting a far North Queensland beach property, a Sydney couple found themselves face to face with a giant python mid-meal. Both they and the real estate agent were taken aback as the large snake attempted to eat an ibis head-first - a task that proved unsuccessful due to the bird's sharp beak, resulting in the snake regurgitating its meal and slithering off into the bushes. The Cairns Post reports the agent Phil Holloway - who had lost his Yorkshire terrier to a snake in the area - did not believe the Sydney couple were likely to purchase the property. "I think they were a little bit shocked, to tell the truth," Mr Holloway said. "They said they had a small dog, and they were a bit worried about buying a place with big snakes around," he said. "I might have lost a sale there." 6. Real estate glossary: Equity  "Equity", in real estate terms, can be defined as the dollar amount of a property that is actually owned. For example, if you own a house worth $250,000, but you have a mortgage of $100,000, then the amount of "equity" in the property is $150,000. As your mortgage decreases and the property value increases, the amount of equity rises.
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