Latest Property News from Ted Hanson

Friday 24 July 2009 Thought for the day How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and strong. Because someday in life you will have been all of these. George Washington Carver 1. New building drops New residential building work fell sharply in the March 2009 quarter, according to final figures released this week by the Australian Bureau of Statistics. Seasonally adjusted work done on new residential dwellings fell by a downwardly revised 7 per cent in the March 2009 quarter to an annualised worth of $33.1 billion, 4.8 per cent down on a year earlier. Read More... New residential building work fell sharply in the March 2009 quarter, according to final figures released this week by the Australian Bureau of Statistics. Seasonally adjusted work done on new residential dwellings fell by a downwardly revised 7 per cent in the March 2009 quarter to an annualised worth of $33.1 billion, 4.8 per cent down on a year earlier. Work done on detached houses fell by 9 per cent over the March quarter to be worth $22.5 billion in annualised terms, while work done on `other residential building' fell by 2.5 per cent to be worth an annualised $10.6 billion. The decline in seasonally adjusted new home building work done was evident across Australia in the March 2009 quarter, with the largest falls occurring in New South Wales (down 13.1 per cent) and Tasmania (down 11.8 per cent). There was a drop of 7.1 per cent in Victoria, 6.5 per cent in Western Australia, 3.6 per cent in the Australian Capital Territory, 3 per cent in Queensland, and 2.4 per cent in South Australia. In the Northern Territory, new home building work done was down by 28.9 per cent in original terms, compared to the March 2008 quarter. Work done on major alterations and additions fell by 3.2 per cent in the March 2009 quarter but there are indications that this sector will grow in the June quarter. Top 2. Vacancy rates at all-time low There is no easy place to find a rental property this winter, with vacancy rates in many states at historic lows, according to surveys released this week by the Real Estate Institutes (REI) in each state. In Western Australia and Queensland, however, the figures have begun to turn around again, as renters take advantage of the current climate to buy their first homes. Read More... There is no easy place to find a rental property this winter, with vacancy rates in many states at historic lows, according to surveys released this week by the Real Estate Institutes (REI) in each state. In Western Australia and Queensland, however, the figures have begun to turn around again, as renters take advantage of the current climate to buy their first homes. New South Wales' renters are doing it toughest, with Sydney's rental vacancy rate at its lowest level in 12 months, according to the latest data released by the REINSW. In May 2009, the percentage of available rental properties across Sydney slumped by half a percent to 1.0 per cent. The figure varied according to distance from the CBD, with outer suburbs feeling the brunt. The REINSW figures show that the percentage of available properties in suburbs more than 25 kilometres from the CBD fell 0.4 per cent to 1.0 per cent, while in Sydney's `middle' suburbs, between 10 and 25 kilometres from the CBD, rental vacancies fell 0.2 per cent to 1.5 per cent. The only parts of Sydney not to record a fall in available rental properties were suburbs within 10 kilometres of the CBD, which recorded a vacancy rate of 1.4 per cent - unchanged compared to the previous month. Key regional areas in NSW fared no better, recording rental vacancies between 1.2 per cent in Wollongong (a drop of a full 1 per cent) and 1.7 in the Hunter Valley. In Victoria, REIV figures show that the vacancy rate in Melbourne was 1.3 per cent in May 2009, the same as in April and a slight variation on the 1.4 per cent recorded in January, February and March. The overall vacancy rate in Melbourne has moved between 1 per cent and 1.4 per cent over the past twelve months. The story is similar across the state, with the overall vacancy rate in regional Victoria recorded at 1.6 per cent in May, down from 2.2 per cent in April. Some key regional centres are displaying record lows, such as 0.6 per cent in Bendigo and 0.5 in Ballarat. Despite evidence of a slowing rental market, the Real Estate Institute of South Australia (REISA) reported that the vacancy rate for metropolitan Adelaide tightened to 1.50 per cent in May. Mid to high-end properties are moving slowly, a spokesman said, stressing the importance of making sure the investment is priced according to market conditions. In Queensland, on the other hand, the REIQ is reporting that rents have begun to stabilise or ease slightly over the June quarter due to low interest rates and thousands of renters becoming first home buyers. REIQ's Dan Molloy said that thousands of Queenslanders have taken advantage of historically low interest rates and the raft of government first home buyer incentives to move out of the rental market into their own home. "This has alleviated some of the pent-up demand that has been burdening Queensland's rental market for more than four years, which put upward pressure on rents." REIQ rental vacancy rates show demand has eased in many areas across the state; however with vacancy rates of 1.9 per cent, 0.9 per cent and 2.5 per cent respectively, Brisbane, Toowoomba and Mackay are still affected by more demand than supply. "While rents are steady, gross rental yields of more than 5 per cent are being achieved in many cases," Mr Molloy said. "Compared to other investment vehicles, investment property is really holding its own with solid yields, the possibility of good capital growth and lower financing costs making entry into the market more affordable." Western Australia is reporting eased conditions for renters, with figures released by the REIWA showing that the availability of rental properties has increased, with the vacancy rate growing to 3.6 per cent in the quarter. This has had the effect of lowering the median rental payments for houses by around $10, to a median of $360 per week. However, rents for units and apartments remained unchanged at a median of $350 per week. The REIWA is predicting that this vacancy rate could rise further during the September quarter as more renters become first home buyers and as some of the retrenched mine workers move back east. Top 3. Renovate, relocate or detonate: that is the question What do you do if you're in the right place, but the wrong house? According to Archicentre, the building advisory service of the Australian Institute of Architects, it is a question many homeowners have to face at some point and there's no easy answer as every situation is unique. Read More... What do you do if you're in the right place, but the wrong house? According to Archicentre, the building advisory service of the Australian Institute of Architects, it is a question many homeowners have to face at some point and there's no easy answer as every situation is unique. When looking for their new home, home buyers seek out neighbourhoods and houses for features they can check off like items on a wish list, Angus Kell, ACT and NSW State Manager of Archicentre commented recently. If the house does not quite fit the needs, they renovate. "Building has been expensive over the last few years; however, with the current economic climate and low interest rates, renovation or building a new home is an attractive financial proposition", Mr Kell said. "The notion that a new home or renovation offers a brand new lifestyle experience still appeals to a wide range of people," he added. The Three Big Questions that homeowners with the `wrong house' find themselves asking are whether to sell up and try somewhere else, knock it down altogether and start again, or just fix the important bits. Relocate? Moving may be the easiest option to consider, but potentially it can be the most costly and may require a further extension on a mortgage. To avoid a repeat of the `wrong house' syndrome, Mr Kell suggests a Pre-Purchase Inspection to check both the condition of the building and an architect's opinion of the property's potential. Detonate? Knocking it down is always an option, provided you've received council approval. Pay a visit to display home villages or peruse standard house plans, but keep in mind that it's rare to find a house that totally suits your needs and taste (and alterations to standard plans can be disproportionately costly). Renovate? Renovation has a threefold advantage - investment in the family home does not attract capital gains tax when it is sold; people get to enjoy a better lifestyle; and they could turn part of their home into a future revenue stream by creating a self contained living area for rent. If you want to maximise your property's potential but aren't sure if it can be modified, whether it's feasible or within reach of your budget, a design report can help by offering advice from a creative professional with ideas on adapting your home for both current and future needs. Top 4. Are you prepared for Winter? As winter tightens its grip on the nation, new research shows that many Australian householders are ill prepared to handle a fire in the home, national insurer AAMI warned this week. AAMI's annual Firescreen report shows most homes lack basic fire-fighting equipment, with renters the least likely to own fire extinguishers and blankets. Read More... As winter tightens its grip on the nation, new research shows that many Australian householders are ill prepared to handle a fire in the home, national insurer AAMI warned this week. AAMI's annual Firescreen report shows most homes lack basic fire-fighting equipment, with renters the least likely to own fire extinguishers and blankets. AAMI Public Relations Manager Emma Watts said that while most homes are equipped with a smoke detector (94 per cent) the research shows the opposite about basic fire-fighting equipment like fire extinguishers and blankets. "Only one-third of homes are equipped with an extinguisher (33 per cent) and fewer still have a fire blanket (25 per cent)", she said. "These tools can mean the difference between quickly containing and extinguishing a small kitchen fire - where most home fires start - and losing control altogether." Ms Watts said the lack of this basic equipment might explain why so few householders are confident their homes are adequately stocked for extinguishing a fire. "Just one-third of householders (36 per cent) are confident they have sufficient equipment for putting a fire out, which contrasts with the two-thirds that say they know the best response to a fire (69 per cent). "The sad irony here is that those who know the best response to a fire would be unable to act because they don't have the basic equipment", she added. The good news is that most Australians whose homes contain basic fire fighting equipment know how to use it. The research shows that nine in ten householders with fire extinguishers know how to use them, as do 96 per cent of those with fire blankets. "The five per cent of Australians who have no fire fighting equipment whatsoever could learn a lot from those who do," Ms Watts said. Ten Top Fire Safety Tips Have an adequate number of smoke alarms throughout your home and test them regularly. Develop a home escape plan and rehearse it with all the members of the household. If you have a fireplace, place a screen in front of it when in use, and keep the chimney clean. Check electric blankets for damage or frayed cords before placing them on the bed. Take care to keep curtains, tablecloths and bedding away from portable heaters. Keep wet clothing at least one metre from heaters or fireplaces. If you use a clothes dryer, ensure you clean the lint filter each time you use it. Use candles with care and extinguish them before going to bed or leaving the house. Store matches and lighters in a secure place not accessible to young children. Use only authorised installers of fixed heating appliances. Oil, gas or wood heating units may require a yearly maintenance check. Top 5. Hot dog, we have a weiner in the house! Would a catastrophe be easier to swallow if the car that crashed into your home was a famous giant hotdog on wheels? Having the Oscar Mayer Weinermobile visit you at home may be a dream come true for American children; however one US family was left with more than an upset stomach when the driver of the iconic vehicle drove the oversized foot-long head-first into their Wisconsin house last Friday. The driver was reportedly attempting to turn the Weinermobile around after taking a wrong turn down a dead end street, but then he accelerated forward, rather than reversing. A spokeswoman for Oscar Mayer has said insurance will cover the damage to both the house and hotdog. Top 6. Seat-saw for growing kids Children, they grow up so fast. While the process of life is a wonderful thing, it does place a limited lifespan on a lot of childhood items like clothes and kiddie seats. Supporting longevity, Dutch designer and mother Maartje Steenkamp created Highchair to be a companion through childhood, dimishing in height as the kids grow. Starting out as a highchair for babies, the wooden frame has notches on the legs so that as the children grow larger you can saw off the no-longer-necessary height.