Latest Property News from Ted Hanson

It all about Attitude Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company... a church... a home. The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past... we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude... I am convinced that life is 10% what happens to me and 90% how I react to it. And so it is with you... we are in charge of our attitudes." ~Charles Swindoll~ 1. Dwelling approvals dive in May The building industry took a blow this week with the news that housing approvals dropped 12.5 per cent in May following increases in the previous three months. Figures released by the Australian Bureau of Statistics show that while approvals for new detached houses dropped just 2 per cent, approvals for units fell by 39.5 per cent in May to a record low level of just 1,943 dwellings. Read More... The building industry took a blow this week with the news that housing approvals dropped 12.5 per cent in May following increases in the previous three months. Figures released by the Australian Bureau of Statistics show that while approvals for new detached houses dropped just 2 per cent, approvals for units fell by 39.5 per cent in May to a record low level of just 1,943 dwellings. The number of seasonally adjusted residential dwelling approvals decreased in May by 25.6 per cent in New South Wales, 8.9 per cent in Victoria, 13.3 per cent in Queensland and 17.5 per cent in South Australia. Dwelling approvals increased by 27 per cent in Tasmania and were flat in Western Australia. The trend number of approvals increased in both the Northern Territory (up by 3.0 per cent) and the Australian Capital Territory (up 11.2 per cent). The seasonally adjusted estimates for the value of new residential building approved and alterations and additions approved fell 5.6 per cent and 13.4 per cent respectively. Top 2. OCR remains on hold The Reserve Bank again decided to leave the cash rate unchanged at 3.0 per cent this week, citing a growing stabilisation in both the Australian and global economies. In his statement announcing the Bank's decision, Governor Glenn Stevens said that economic conditions in Australia have to date not been as weak as expected a few months ago, and inflation should continue to abate over the period ahead. Read More... The Reserve Bank again decided to leave the cash rate unchanged at 3.0 per cent this week, citing a growing stabilisation in both the Australian and global economies. In his statement announcing the Bank's decision, Governor Glenn Stevens said that economic conditions in Australia have to date not been as weak as expected a few months ago, and inflation should continue to abate over the period ahead. "A pick-up in housing credit demand suggests stronger dwelling activity is likely later in the year", Governor Stevens said. "House prices are tending to rise", he said, adding that market and mortgage rates are at very low levels by historical standards, despite recent small increases. The Board's current view is that the outlook for inflation allows some scope for further easing of monetary policy, if needed. "In assessing how it might use that scope, the Board will continue to monitor how economic and financial conditions unfold and how they impinge on prospects for a sustainable recovery in economic activity", Governor Stevens concluded. Top 3. Home values rise by 4 per cent Home values in Australia continue to trend upwards, according to research released this week by RP Data and Rismark International. The RP Data/Rismark National Home Value Index shows that over the month of May 2009, home values reached a national median of $468,819, to be just 0.1 per cent (or $520) shy of their peak in February 2008. Read More... Home values in Australia continue to trend upwards, according to research released this week by RP Data and Rismark International. The RP Data/Rismark National Home Value Index shows that over the month of May 2009, home values reached a national median of $468,819, to be just 0.1 per cent (or $520) shy of their peak in February 2008. The Index recorded an overall increase of 0.9 per cent in the month of May and a 3.9 per cent gain over the first five months of 2009. During the 12 months to May 2009, Australian home values have increased by 1.6 per cent. Perth is the only mainland capital city that has not recorded increased home values for the first five months of 2009. RP Data head of research Tim Lawless remarked that the results herald an Australia-wide recovery for the residential market. "It's important to note that it has taken just 15 months for values to recover from the February `08 peak", Lawless said. "I believe these results are encouraging, especially when we take a closer look at other Western markets around the world where prices are mostly in decline." Rismark International managing director Christopher Joye concurred with Mr Lawless' comments, saying that the results were the first clear signs of the so-called economic `green shoots'. "All of the subsequent evidence--housing finance approvals, auction clearance rates, and other independent house price data--has affirmed this story of an incredibly resilient housing market", Joye said. "The recovery in Australia's housing market, which has defied countless doomsayers, has in turn been the cornerstone of the Australian economy's stability in 2009. "The robust rise in Australian home values this year has given builders and developers confidence to hire labour and buy materials to invest in new homes. "It has also given existing owners the confidence that their largest investment has been a secure store of wealth while other asset-classes have been decimated", Joye said. The improvement in market conditions during 2009 has been largely driven by an increase in owner-occupier (as opposed to investor) activity, which, according to Australian Bureau of Statistics data, is up 23 per cent over the year. According to Mr Lawless, although investor activity remains low, investment interest is likely to gather pace in the second half of 2009. "Investors and first home buyers typically compete for similar housing stock", Lawless said. "Investors are becoming increasingly attracted to the strong rental yields that are creating positive cash flow opportunities within key markets around Australia." Lawless pointed out that the Australian Bureau of Statistics housing finance data in April also showed the first signs of a rebound in investor participation. "Given the capital gains recorded across most cities, growth in rental yields is now flattening", he said. "The gross annualised rental yield for units is now 5.3 per cent while house rental yields are slightly lower at 4.5 per cent." The Index shows that over the first five months of 2009 unit values increased by 4.5 per cent while house values rose by 3.7 per cent. Top 4. How green is my wall A few years ago, when the new Quai Branly museum opened in Paris, there was a mixed reaction to its four-storey high `living wall' - a vertical garden built into the face of one external wall comprising 15,000 plants of 150 different species. The living wall is now a happily accepted feature of the Parisian landscape and has spawned vertical garden systems all over the world, for both commercial and domestic use. Read More... A few years ago, when the new Quai Branly museum opened in Paris, there was a mixed reaction to its four-storey high `living wall' - a vertical garden built into the face of one external wall comprising 15,000 plants of 150 different species. The living wall is now a happily accepted feature of the Parisian landscape and has spawned vertical garden systems all over the world, for both commercial and domestic use. Installed indoors, the vertical garden not only becomes a feature wall, but also removes toxins and unhealthy contaminants from the air. It is partly for this reason that it has become a popular element in recent commercial architecture. Outdoors, it is perfect for blocking the sun from heat-absorbing walls, or creating instant fencing, private nooks or feature walls. Apartment dwellers can take advantage of the modular units to grow a vertical garden on their balcony - tomatoes, herbs, strawberries and many flowers will thrive happily this way, as long as they have sufficient light and water. Some systems are hydroponic, while others are soil-based, using a lightweight growing medium. There are modular vertical garden systems available on the market that are easy to assemble, or you can opt to have your wall installed by professionals with the plants already established. Top 5. Thicker than blood Cleanliness may be next to godliness, but what happens when the father sets a bad example? A US man and his son are facing over AU$25,000 in fees and fines after New York authorities removed about 42 tons of rubbish from their property. Officials reportedly removed - at the residents' expense - car parts, tyres, hoses and other rubbish that filled 10 garbage trucks. The house is listed as condemned. Top 6. Bed for sale, and they'll throw in the mansion There's nothing like a freebie to sweeten the deal. While some houses come with tax incentives, vacation offers, free dinners and gifts, a New Zealand couple have upped the ante by giving away their historic mansion free with a queen-size bed they were selling. Reportedly desperate to sell and sick of offers on the $300,000 house falling through, the couple listed the deal on online trading website TradeMe as "queen-sized bed for auction, with a free grand old home thrown in". The sale, which started at $1, closed last Saturday with the winning bid at $302,600.