No Regrets "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."
1. Houses up, construction down There has been an increase in the number of homes being built, yet construction industry activity generally continued to decline in July, with the seasonally adjusted Australian Industry Group/HIA Performance of Construction Index (Australian PCI®) falling by 3.1 points to 39.5. There has been an increase in the number of homes being built, yet construction industry activity generally continued to decline in July, with the seasonally adjusted Australian Industry Group/HIA Performance of Construction Index (Australian PCI®) falling by 3.1 points to 39.5. The lift in house building was not enough to offset the faster rate of decline in both the apartment and engineering construction sectors. Overall construction activity has now remained for 17 months below the key 50-point level that separates expansion from contraction. House building exhibited further strength in July with the sub index rising by 7.9 points to 51.9. Apartment building activity registered a further contraction, falling by 5.9 points to 29.4. AI Group Associate Director Economics and Research, Tony Pensabene, said that new orders in the house building sector are exhibiting greater resilience than other sectors, suggesting a continuation of housing growth in coming months. "The critical priority will be for the other parts of the construction sector to mirror the house building story, and this will require a lift in business confidence and investment and for major infrastructure projects to commence in the months ahead", Mr Pensabene said. 2. House prices lift confidence Confidence in the Australian economy has been given another boost with the recent news that house prices have lifted in all capital cities around the country. Figures released by the Australian Bureau of Statistics show that established house prices rose 4.2 per cent in the June 2009 quarter following four straight quarters of decline. Confidence in the Australian economy has been given another boost with the recent news that house prices have lifted in all capital cities around the country. Figures released by the Australian Bureau of Statistics show that established house prices rose 4.2 per cent in the June 2009 quarter following four straight quarters of decline. The capital city established house price index rose in the June 2009 quarter by 4.9 per cent in Sydney, 5.2 per cent in Melbourne, 2.5 per cent in Brisbane, 3.4 per cent in Adelaide, 2.7 per cent in Perth, 2.5 per cent in Hobart, 2.4 per cent in Darwin, and 3.6 per cent in Canberra. The weighted average index for project homes across Australia's eight capital cities increased by 1.5 per cent over the June 2009 quarter, to be up by 2.6 per cent in annual terms. The capital city project house price index increased in the June 2009 quarter by 2.1 per cent in Sydney, 2.2 per cent in Melbourne, 0.9 per cent in Brisbane, 0.5 per cent in Adelaide, 0.1 per cent in Perth, 0.5 per cent in Hobart, 1.1 per cent in Darwin, and 1.2 per cent in Canberra. 3. Residential building to surge There will be a dramatic increase in housing starts over the next twelve months, according to economic forecaster and industry analyst, BIS Shrapnel. The company predicts that a sharp increase of 21 per cent in housing starts, to 160,000, in 2009/10, will be the beginning of a four-year upturn for the sector. There will be a dramatic increase in housing starts over the next twelve months, according to economic forecaster and industry analyst, BIS Shrapnel. The company predicts that a sharp increase of 21 per cent in housing starts, to 160,000, in 2009/10, will be the beginning of a four-year upturn for the sector. BIS Shrapnel's Building in Australia, 2009 - 2024 report suggests that the strength of the upturn in construction will be dependent on the continuation of very low interest rates. "We are forecasting interest rates will be kept low until the expansion in housing construction is great enough to offset a deep plunge in business investment, which is only just beginning to become evident," says Jason Anderson, Senior Economist, BIS Shrapnel. "Some commentators have speculated the phasing down of first-home buyer grants over the remainder of 2009 will mark the end of the housing recovery," continues Anderson. "We certainly expect first-home buyer numbers will subside from a record number of 200,000 during calendar year 2009 and forecast a drop of 30 per cent to 140,000 first-home buyers in calendar year 2010." Critical to the equation, says BIS Shrapnel, is that demand from first-home buyers will be waning at the same time as business investment falls sharply. Business investment includes commercial building and engineering projects as well as equipment spending, and it currently accounts for 20 per cent of GDP. "The decrease in business investment is expected to wipe $32 billion, or 2.8 per cent, from GDP during 2009/10," says Anderson. "To put this decrease in context, it is equivalent to the annual value of national new housing construction." BIS Shrapnel says the decrease in commercial building activity will be particularly sharp. The national value of commercial and industrial building commencements is expected to show a cumulative decline of 55 per cent during 2008/09 and 2009/10. To compensate for the plunge in business investment the nation will depend on a strong and sustained recovery in residential building activity throughout 2009/10 and 2010/11. To stimulate housing demand from upgraders and investors low interest rates will need to persist for an extended period. If this is the case, BIS Shrapnel forecasts a further nine per cent rise in building starts, to 174,500, in 2010/11. "Standard variable housing rates are expected to remain below six per cent throughout 2010," says Anderson. "With interest rates staying very low, housing demand from upgraders and investors is expected to increase enough during the first half of 2010 to compensate for the drop-off in first-home buyers. "However, a by-product of this is that median house prices will continue to show moderate increases of about five per cent in most cities during calendar year 2010, which is consistent with long-run growth in prices. We think the Reserve Bank will be comfortable with price growth at that level." BIS Shrapnel says the housing construction upturn will have a wide range of effects across the states. New South Wales is best placed to benefit from low interest rates, given the undersupply of housing is far greater in that state. In other states, the housing upturn will be considerable, but offset by a sharp decline in commercial building. The New South Wales building sector is likely to gradually emerge as a relatively attractive location for construction workers for the first time since the Sydney Olympics boom of 2000. 4. Furnishings for a healthy home With many modern day ailments such as asthma, allergies, hyper-sensitivity and hyperactivity in children being linked to chemicals, maintaining a healthy home environment makes good sense. Volatile Organic Compounds (VOCs) are chemical substances found in many common household products including paints, glues, cleaning products, disinfectants, dry-cleaned clothing through to underarm deodorants, and contribute to an unhealthy indoor environment. With many modern day ailments such as asthma, allergies, hyper-sensitivity and hyperactivity in children being linked to chemicals, maintaining a healthy home environment makes good sense. Volatile Organic Compounds (VOCs) are chemical substances found in many common household products including paints, glues, cleaning products, disinfectants, dry-cleaned clothing through to underarm deodorants, and contribute to an unhealthy indoor environment. Sounds dire, doesn't it? There are just three easy steps, however, to minimising the effects of chemicals in your home, and they are keeping it clean, well-ventilated and avoiding harmful
chemicals wherever possible. - Avoid using air fresheners, as they actually contaminate the air with (usually) synthetic fragrance - the best way to freshen air is to open a window
- Place healthy indoor plants around the house to absorb VOCs and other pollutants
- Choose natural furnishings and finishings such as untreated cotton, linen, canvas, hemp, wool, silk, rayon, feathers, down, latex rubber, linoleum
- Build and renovate using natural materials such as plantation or recycled wood, stone, clay, steel, brick, glass
- Finish surfaces with natural oils, waxes and plant-based, non-toxic paints and varnishes
- Buy and use recycled items where possible.
5. Hotdog vendor in a pickle In America, homeowners aren't the only ones getting burnt by overpriced real estate.
A US hotdog vendor has now found himself in hot water over sky high rent, losing his spot outside the Metropolitan Museum of Art because he couldn't pay the monthly bill of AU$64,596. NY Daily news reports the man had agreed last year to pay almost $776,525 annually for rent - including the right to sell food and drinks from carts on either side of the iconic steps. A worker at one of the carts told the paper it brought in just $1,200 - $1,800 a day, an amount not enough to pay the rent let along cover costs and turn a profit. The vendor was $374,144 behind on rent when the eviction notice was issued. 6. Fold up vases With spring just around the corner, flowers across the country are budding in anticipation. Keeping fresh cut flowers around the house is a great way to brighten a room and freshen the air; however, vases take up cupboard space while they're not in use and are vulnerable to being knocked over by pets in curiosity (or is it animosity?). Vazu expandable vases are made from strong polymer materials that take shape when you fill them with water. Available in a large range of designs and shapes, the flexible vases will tuck away in a drawer when not being used and won't fade, scratch or break, even if a furry friend knocks them over. | |
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