Latest Property News from Ted Hanson

Friday 05 February 2010 Giving when it counts.... Many years ago, when I worked as a volunteer at a hospital, I got to know a little girl named Liz who was suffering from a rare & serious disease. Her only chance of recovery appeared to be a blood transfusion from her 5-year old brother, who had miraculously survived the same disease and had developed the antibodies needed to combat the illness. The doctor explained the situation to her little brother, and asked the little boy if he would be willing to give his blood to his sister. I saw him hesitate for only a moment before taking a deep breath and saying, "Yes I'll do it if it will save her." As the transfusion progressed, he lay in bed next to his sister and smiled, as we all did, seeing the color returning to her cheek. Then his face grew pale and his smile faded. He looked up at the doctor and asked with a trembling voice, "Will I start to die right away". Being young, the little boy had misunderstood the doctor; he thought he was going to have to give his sister all of his blood in order to save her. - Writer unknown - 1. House prices soar House prices around Australia are continuing to increase, according to figures released this week by the Australian Bureau of Statistics. The median house price across the eight capital cities jumped 5.2 per cent in the December quarter last year and 13.6 per cent over the year. Melbourne recorded the biggest increase of 6.8 per cent for the quarter, and 19.7 per cent for the year. Prices rose in all other capital cities in the December 2009 quarter, particularly in Sydney (a rise of 5.0 per cent) and Perth (up by 5.7 per cent). There were also positive contributions from Brisbane (up 3.8 per cent), Adelaide (up 2.1 per cent), Canberra (3.6 per cent), Hobart (4.3 per cent) and Darwin (up 4.9 per cent). Annually, house prices increased by more than one-tenth in most other capital cities. In Darwin, prices were up by 13.6 per cent, Sydney 12.8 per cent, Canberra by 12.4 per cent, Perth 11.5 per cent, Hobart 11.0 per cent and Brisbane 10.9 per cent. Adelaide prices rose by 5.1 per cent. 2. Global financial what? A survey has found the Global Financial Crisis is a distant memory for most Australians, who now believe the housing market is set to take off - again. "A surprising 73 per cent of respondents expect house prices to rise, which is the highest proportion for more than three years," said Phil Naylor, CEO, Mortgage and Finance Association of Australia (MFAA). The MFAA/Bankwest Home Finance Index canvassed the opinion of 850 people on a range of issues relating to the economy and housing market. "Confidence in the housing market is not only pre-GFC - it's back where it was during the height of the housing boom," Mr Naylor said. "But there are still some clouds on the horizon, with recent interest rate increases negatively impacting households." Mr Naylor said that 15.9 per cent of respondents are struggling to meet repayments - which is up from only 11.7 per cent in May 2009. The survey found it was in the former boom state of Western Australia that most respondents claimed to be struggling in their repayments (25 per cent). The least number of people struggling to meet repayments were in NSW (20.6 per cent). Head of Mortgages at Bankwest, Dean Gillespie, said the survey revealed a reversal of fortunes in WA and NSW. "The survey suggests that Australia's two-speed housing market is alive and well," Mr Gillespie said. "It would appear that when it comes to the housing market and perceptions of economic conditions, NSW is leading the charge for the first time in years." Mr Gillespie said that respondents were divided about whether it is a good time to buy a new home, with 49.7 per cent thinking it is a good time. "Respondents from Queensland (41.4 per cent) were the least likely to think now was a good time to buy, but South Australians were more optimistic with 63.6 per cent saying it was a good time to buy", Gillespie said. He added that when it comes to other cost of living pressures, borrowers said the cost of food was of greatest concern. "Over the last year there has been a reversal in burden of food versus fuel costs. People are saying that food prices are now taking a bigger bite out of the family budget", Gillespie concluded. 3. Rates unchanged There was an audible sigh of relief this week when the Reserve Bank opted to leave the Official Cash Rate unchanged at 3.75 per cent. In a statement announcing the decision, Governor Glenn Stevens commented that while the Reserve Bank has chosen to raise rates slightly over the past three consecutive months, lenders have not been so conservative in their increases, hence the need for a `wait-and-see' approach. "Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point", Governor Stevens said. "Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being." Interest rates to most borrowers nonetheless remain almost half what they were a year ago. Governor Stevens concluded that if economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term. 4. The world's strangest places to live The town of Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch in Wales has the longest village or suburb name of anywhere in the world. But a quick diversion into the world of toponymy (the study of place names) reveals that strange place names are not restricted to Wales. New Zealand has its fair share of strange place names...try Bulls in South Taranaki; Gore in Southland and the town of Twizel in the MacKenzie Basin. Australia has Arid and Bigge in Western Australia, Avoid in South Australia, Bland and Disaster in New South Wales and Many Peaks in Queensland. Along the southern coast of England lie the Cinque Ports ("cinque" being French for five). Or you may choose to visit Redcar near the Yorkshire Moors, or perhaps Wigtown and Leek are more your style? But, probably not surprisingly, some of the strangest place names in the world are in the United States. Towns such as Cool, Frying Pan and Rough & Ready in California; Burnt Corn, Alabama; Nothing, Arizona; No Name, Colorado; Hopeulikit, Georgia; Do Stop, Kentucky; Boring in Maryland; Truth or Consequences, New Mexico; Hoop an Holler, Texas and Ware (I'm from Ware?) in Massachusetts. 5. Unwilling to ride the rising tide A British man is suing the previous owners of his home on the Thames River, with claims that the property floods up to 80 times a year. Adrian Howd told England's High Court that he and his wife were `deeply shocked' to see flood-waters creeping up the 140-foot garden of their AU$3.5M home within weeks of moving in, the UK Telegraph reports. Prior to the sale, the previous owners had confirmed the house had never suffered from flooding, although took the question to mean the bricks and mortar, not the garden. Living in the house since 2006, the Howd family has had enough of the tidal conditions that can see the garden submerged beneath 4.5 metres of water, and are seeking to have the sale rescinded, or damages to cover the loss in property value. Perhaps they should have talked to the neighbours before buying, as an elderly man next door commented he was used to the tides by now, having lived there since 1946, adding that one year his family had to use a dinghy to get to the front gate. 6. How eggciting! But is it eggspensive? It seems Murphy's Law rules when it comes to carpets, and stains are almost inevitable. So why not beat your floor to the punch and cover it up with something weird and wonderful like the Sunny Side Up shag rug. Part of a line from designer Valentina Audrito called "Le Uova di Leon" entirely inspired by the egg, the rug looks like part of a giant's breakfast - the main part is shaped like the whites of two huge fried eggs and the large yellow leather yolks (still in tact) serve as head cushions.