Latest Property News from Ted Hanson

Friday 29 January 2010 Life is short.... "Plenty of people miss their share of happiness, not because they never found it, but because they didn't stop to enjoy it." ~William Feather~ 1. Why do we move? Whether they own or rent their home, most Australians find that both moving house and the condition of their housing impact significantly on their quality of life, according to a recent study by the Australian Bureau of Statistics. The research, entitled Housing Mobility and Conditions, 2007-08, found that Australians often choose to change their housing at particular points in their life cycle, such as when they get married or have children, because of employment, or due to lifestyle preferences. They may also move because of the expiry of rental leases or because particular forms of housing become less affordable. The study found that a major factor in the drive to move is that what is suitable housing at one stage of people's lives may not meet their needs at another. In 2007-08, 43 per cent of respondents had moved in the 5 years prior to being interviewed. Of these, 8 per cent had moved from interstate or overseas, 45 per cent had moved from a different suburb / locality, and 47 per cent relocated within the same suburb/locality. Private renter households were most likely to have moved in the last 5 years (85 per cent of reference persons), and owners without a mortgage the least likely (15 per cent). Renters from state and territory housing authorities were less than half as likely to have moved in the last 5 years as private renters (37 per cent of reference persons). For recent movers, the most common reasons for moving to their current dwelling were: purchased own dwelling (17 per cent); wanted a bigger or better home (16 per cent); and lifestyle / other reasons (14 per cent). Other reasons included neighbourhood reasons, migration to Australia and returning from living overseas. Top 2. Residential building recovers Residential building activity picked up in the September 2009 quarter, according to figures released this week by the Australian Bureau of Statistics. Seasonally adjusted work done on new residential dwellings increased by 2.8 per cent in the September 2009 quarter, to an annualised worth of $36.3 billion. This was 3.9 per cent down on the September 2008 quarter and over 9 per cent lower than the previous cyclical peak seen back in early 2004. Work done on detached houses increased by 6.5 per cent over the September 2009 quarter but work done on `other residential building' dropped by 5.5 per cent. Seasonally adjusted new residential work commenced in the September 2009 quarter increased by 5.8 per cent, the first rise since mid 2008. Housing Industry Association Chief Economist, Dr Harley Dale said that 2009/10 is looking like it will be a healthier year for new residential construction. "First home buyer-related activity, the Social Housing Initiative, and the lagged impact of very low mortgage rates will combine to generate growth in new residential work done in 2009/10", Dale said. There was also brighter news on the renovations front in the September 2009 quarter with the volume of work done on major alterations and additions increasing by 3.9 per cent following four consecutive quarters of decline. "The renovations sector should continue to recover after a soft 2008/09 as labour market conditions improve further and gains in home prices bolster confidence" he concluded. In the September 2009 quarter seasonally adjusted new residential work done increased in every state and territory with the exception of Western Australia. New residential work done increased by 6 per cent in Queensland, 4.5 per cent in the Australian Capital Territory, 3 per cent in Victoria, 2.9 per cent in the Northern Territory, 2.8 per cent in New South Wales, 0.3 per cent in South Australia, and 0.2 per cent in Tasmania. Work done fell by 1.2 per cent in Western Australia. Top 3. Top 10 tips for avoiding strata strife Living in close proximity with others can be difficult, especially if you live in an apartment block with thin walls, annoying neighbours, or frequently find your car space being used by someone else. NSW Minister for Fair Trading Virginia Judge said this week that requests for mediation in strata disputes in NSW alone had risen from 1,273 in 2008 to 1,405 in 2009 - an increase of almost 10 per cent. "Complaints last year ranged from the ordinary to the off-the-wall," Ms Judge said. "You can understand differences of opinion over processes - but some behaviour is just peculiar." Some of the more unusual complaints received by Fair Trading last year included: A long-running and personal feud between neighbours peaking with one positioning what the adjoining owner described as an "evil-looking effigy" in his courtyard so that it stared directly into his bedroom A complaint made against an owner whose large dogs and particularly noisy pet geese were disturbing other owners, resulting in threats that the geese would help save his weekly dog food bill, and High-rise residential tower residents dropping tables, chairs, lit cigarettes and dirty nappies onto the pavement outside the ground level café and shops. Ms Judge said the good news was that while there was an increase in mediation requests last year, they represent a tiny fraction of the State's 65,000 strata schemes. "People want to get along. Whether you live in a unit, a duplex or a house, being happy in your home and having a sense of community is so important," she said. "Exercising commonsense and your responsibilities as well as your rights will help avoid frayed nerves." Ms Judge said the most common bugbears were associated with alterations to common property, breaches of by-laws, relationships with managing agents and meeting procedures. Ms Judge said NSW Fair Trading's Top 10 Tips for Strata Living are: Get involved - Decisions are made at meetings so get involved. Make your vote count. Use your proxy if you can't attend. Know the rules - find out the strata management requirements for your state. Looks are deceiving - get approvals before altering common property. It doesn't matter that it's your courtyard, if it's common property, it's owned by everyone. What will the neighbours think? - be mindful of others. Noise can be annoying - as is taking up visitor parking with your vehicles. Protect your investment - maintain common property. If it's getting run down, put up a motion at a meeting for specific works to be done. Talk first - talk to your neighbours if there is a problem. They may not realise their actions are causing a nuisance. It's your strata scheme - your strata managing agent works for you. If you're not happy with their performance, have a meeting and vote to instruct them on how you want them to manage your scheme. If you don't like it, change it - by-laws are there to guide the behaviour of owners and tenants. If the by-laws aren't working, change them. You do this by putting a motion with the new by-law to a general meeting, getting over 75 per cent to vote for it, then registering the by-law at the Land and Property Management Authority. Don't let it fester - pursue by-law breaches. If talking has not resolved a by-law breach, contact your executive committee or strata managing agent to issue a Notice to Comply with a By-law. This can lead to a fine of up to $550. You may also want to apply for mediation. Be flexible - there may be times you need to give a little more leeway to accommodate different personalities. Top 4. D+ for `DA's Development assessment processes in Australia aren't making the grade, according to new research from the Residential Development Council (RDC) and the Property Council of Australia (PCA). The RDC/PCA's Development Assessment Forum (DAF) Reform Implementation Report Card reveals that Australia underperforms in the delivery of efficient, fair and consistent planning and development assessment systems. The `Report Card' identifies progress on development assessment reform across the states and the necessary steps that must be taken to fully implement the 10 Leading Practice Principles developed by the DAF to improve development assessment processes. Peter Verwer, chief executive of the Property Council of Australia, said, that over the last 30 years, users of the planning system have experienced growing complexity and delays in development assessment processes have increased dramatically. "It is imperative that planning systems can effectively underpin the strategies of major cities across the country", Mr Verwer said. "If cities are to be the powerhouses of the economy, then the frameworks they operate within must operate efficiently." RDC executive director Caryn Kakas said the `report card' shows which states are successfully advancing development assessment reform as identified by the Council of Australian Governments (COAG), and which states are lagging. "The announcement of planning reform through COAG has provided us with a path to improving systems nationally," Ms Kakas said. "However, we need to ensure these announcements are carried through and the next steps are already being considered if we are to achieve the necessary reform. "Australia's planning system has long struggled to pass the test, but there is still hope for it to top the class." Top 5. Who's been sleeping in my bed? There's nothing quite like jumping into a heated bed on a freezing cold night. While we're in the middle of a scorching summer, one hotel chain in chillier-than-ever Britain is trialing a more humanistic approach to beating the winter chills than the electric blanket or hot water bottle. This month, if requested, a willing staff member in 3 participating Holiday Inn hotels will dress in an all-in-one fleece sleeper suit before slipping between the sheets to get the bed nice and toasty before guests arrive, local press reported recently. The bed warmer will have a thermometer on hand to measure the required 20 degrees Celsius, be fully dressed and have their hair covered, although there is no confirmation as yet if they will have showered before climbing between the sheets. Top 6. Switch your furniture Outer space may be the final frontier, but inner space is a quest we face frequently in our homes. Belgian designer Ellen Ectors has created SwiTCH to take on the problem that bulky desks, chairs and tables so often bring with them. An outer cube made from massif oak has an arc carved from the inside which is lined with padded leather for comfort, and a large leather ball filled with polyether foam rolls easily away into the gap. The cube can be used as a table with the ball rolling out to function as a seat, or can be tipped on its side with the ball inside being used as a recliner or a shallow desk.

Latest Property News from Ted Hanson

Friday 22 January 2010 Come and Celebrate Australia Day in Wollongong! A day long celebration starting from 8am with aquathon, surf rescue water displays, sand sculpture and thong throwing competitions, stalls, amusement rides to hands-on activities and action in every direction for both children and adults alike. The main stage will come alive with talented musicians and dancers whilst costumed characters will roam the event area bringing colour and fun to the atmosphere. There will be something for everyone including mock Surf Life Saving helicopter rescues in Wollongong harbour and more stalls and more challenging amusement rides for the young at heart in Lang Park. The evening culminates with a spectacular fireworks display proudly presented by Integral Energy off the southern breakwater of Wollongong harbour. Come and enjoy the fun! Although road closures are in place from 5am to 10.15pm, a free park n ride bus service is provided from JJ Kelly Park and Vikings Oval to the venue to make parking easy and convenient. Event Begins at: 8:00 AM Event Ends at: 9:00 PM The Event is on: Tuesday, 26 January 2010 The Event will be Held at: Wollongong Harbour Event Type: Competitive Sports Events, Family Fun Day, Fireworks, Food & BBQ's, Music & Entertainment, Novelty Events, Official Ceremonies This Event is Suitable for: Family 1. Double-digit growth in 2009 Home prices rose by more than ten per cent in 2009, according to the latest figures released by RP Data. The RP Data-Rismark Home Value Index shows that Australian home prices rose by 1.1 per cent in November with 11.3 per cent cumulative growth in first 11 months of 2009. The results were driven by robust gains in Sydney (up 11.6 per cent for the year) and Melbourne (up 17.0 per cent). Most of the other capital cities have performed strongly with Darwin (up 17.9 per cent) leading the way, followed by Canberra (10.9 per cent), Brisbane (6.9 per cent), Perth (6.5 per cent) and Adelaide (5.7 per cent). In the three months to end November, home values in Melbourne and Sydney outperformed most other capitals rising by 4.5 per cent and 3.2 per cent, respectively. Over the year-to-date, Melbourne has been Australia's best performing capital city outside of Darwin, generating exceptional capital gains of 17.0 per cent. Sydney home values have increased by more than 1 per cent per month with cumulative growth of 11.6 per cent. Managing Director of Rismark International, Christopher Joye, remarked that Australia's housing market has surprised on the upside with impressive double-digit capital gains in the year-to-date. "At the end of 2008 most forecasters were predicting substantial house price falls in the following 12 months - almost all of them were proven wrong." Rpdata.com Research Director Tim Lawless suggested that the November results highlight that the Australian market may be less sensitive to interest rate rises and the removal of Government stimulus than many would have thought. "The strong November results were achieved despite the 25 basis point lifts in the official cash rate in October and November as well as the wind back of the boost to the First Home Owners Grant which was halved on the first of October", Lawless said. "First home buyers have been trending down since peaking in May '09 and the gap is being filled by upgraders and investors who are much less sensitive to rate rises and the level of stimulus." Christopher Joye agreed. "First time buyers have been fading from the market and the withdrawal of the boost has yet to have any discernible impact on price growth", Joye said. "The key driver of Australian housing demand in the latter half of the year appears to have been up-graders and investors. "We expect this trend to continue in 2010." He said that as mortgage rates normalise to around 7-8 per cent, house price growth is likely to taper back to more modest single-digit levels in 2010. "Since many borrowers did not reduce their mortgage repayments in 2008-09 when the RBA cut rates by circa 40 per cent, household balance-sheets should be well positioned to absorb higher costs", he predicted. The median Australian home price in all capital cities over the three months to end November was $439,800 (including houses and units). The national median dwelling price for all regions across Australia was $395,000*. The median Australian house price in capital cities is $470,000 while the median unit price is $390,000. The most expensive houses, based on median price, are in Sydney ($550,000), followed by Canberra ($535,000), Darwin ($501,000), Melbourne ($486,400), Perth ($485,000), Brisbane ($449,850), Adelaide ($372,000) and Hobart ($330,000). Sydney also has the most expensive unit market with a median price of ($417,000). Melbourne follows at $402,500, then Canberra ($390,000), Perth ($385,000), Brisbane ($375,000), Darwin ($357,000), Adelaide ($310,000) and Hobart ($270,750). In the year-to-date, units (+12.5 per cent) outperformed houses (+10.9 per cent) presumably due to the influence of the first time buyers' boost. National rental yields tapered slightly in November with the gross annualised rental yield for units being 4.9 per cent while house yields are lower at 4.1 per cent. *Note: these are the `middle value' or 50th percentile median prices based on the pooled sales over the last three months. Top 2. Focus on sustainable cities Property industry leaders will gather in Melbourne next month to determine how productive, healthy, profitable green buildings will become the cornerstone of a renewed push for sustainable cities. More than 1000 leading Australian and international property industry experts are expected to attend the annual Green Cities 2010 conference, to be held in Melbourne from February 21-24. A joint initiative of the Green Building Council of Australia (GBCA) and the Property Council of Australia, Green Cities 2010 is the largest and most influential green building conference in the Asia Pacific region. Now in its fourth year, Green Cities 2010 will feature panel discussions, case studies and debates on how green buildings will deliver greater productivity and occupant health while using less resources and providing higher returns on investment. GBCA Chief Executive, Romilly Madew, said that with 11 per cent of all CBD office space now Green Star rated and a further 25 per cent (400 buildings) undergoing certification, clear evidence is now available about the positive impact sustainable buildings have on people, places and performance. "We know that Green Star rated office buildings are reducing greenhouse gas emissions by an average of 60 percent. These buildings are commanding higher rents and higher selling prices, they have lower vacancy rates and the occupants of green buildings report higher productivity and lower absenteeism," Ms Madew said. "With buildings and their users responsible for 23 percent of Australia's total greenhouse gas emissions, the potential benefits to be gained from developing green cities are enormous." Property Council Chief Executive, Peter Verwer, remarked that the property industry has taken important steps in sustainable development over the past five years and this is an opportunity to take green building to the next level. "Sustainable development will only become more important as the pace of urbanisation in Australia continues to accelerate." Green Cities 2010, sponsored by world-leading property investment managers The Grosvenor Group, will feature international and Australian experts including: * leading urban designer Malcolm Smith, who will share his experiences in the creation of green precincts such as Stratford City (UK) and Dongtan Ecocity (China) * US green building specialist Jerry Yudelson * Elsa Monteiro, head of sustainability at Sonae-Sierra (a Grosvenor Group company) More detail, including a full program for the conference, is available at www.greencities.org.au. Top 3. The `Australian dream' could be yours! If you dream of an Australia Day barbecue in a home that is all your own, right now is a good time to start looking for ways to save the time and money. It's a new year and a new decade, the perfect reason to take a look at your home loan and repayment strategy to see if any improvements could be made in order to pay it off as soon as possible. "Offering a fresh start, the New Year is a better time than most, psychologically, for Australians to get off the deck chair and come to the table with a better idea of their goals and how to achieve them", Mortgage Choice senior corporate affairs manager, Kristy Sheppard said recently. "Summer sunshine puts people in a positive frame of mind and this should be directed into a new year mortgage strategy that both novice and experienced borrowers can take advantage of!" To help ensure borrowers begin 2010 by taking a few steps closer to being mortgage-free, Mortgage Choice suggests going over the following checklist: Step 1: Is your current mortgage still the most suitable for you? Circumstances change, as do your needs. Consider how competitive your lender's interest rate is, what features you are paying for and aren't using, the fees you're forking out for and what kind of costs are associated with switching loans and/or lender. A reputable mortgage broker can offer a no-cost home loan health check to compare your loan to others currently available. Step 2: Are there ways to pay off your mortgage quicker? Have you been throwing money into the loan account wherever possible e.g. your yearly tax return or bonus or leftover monthly wage? Every cent counts. Is it possible for you to repay at a faster rate via other methods e.g. paying fortnightly instead of monthly or making the loan a partial offset? Step 3: Are you interest rate savvy? Have you been repaying your mortgage as though its interest rate was at least two percentage points higher, preparing yourself for rate rises and in the meantime reducing your loan term and the amount owed? This will encourage a good savings habit and make adjusting to rate rises less burdensome. Step 4: Is refinancing an option? If you are struggling with your repayments, consider refinancing the loan over a longer term than you have left. Or, if you've been making extra repayments to reduce your loan amount, you could always refinance the loan so your repayments reflect what you owe on the loan, not the original loan amount. Step 5: Have you looked at your spending habits? Are you spending more money than you need to e.g. transport, entertainment, fast food? Continually list your expenses to see where you can save money and contribute more into your mortgage. Once you have revisited all of the above steps, re-do your budget so you really are beginning the year ahead. Top 4. The great wall of chocolate In a recent campaign to convince residents to eat more sweets, a team of Chinese confectioners has built a 10 metre long replica of the Great Wall of China entirely out of chocolate. According to local news sources, the miniature wonder consists of solid dark chocolate bricks held in place with white chocolate and is part of an attraction at the World Chocolate Wonderland exhibition and trade show later this month in Beijing. Up to 80,000kg of chocolate was used to make the display, which also features 560 chocolate Terracotta Warriors - an army that's unlikely to last as long as the original. Top 5. An alarmingly devious tyrant No one wants to get a phone call first thing in the morning, having to be coherent through foggy layers of dream state. With that as incentive for the recalcitrant `sleeper in', designer Alice Wang has created the Tyrant alarm clock. If you don't wake up when the alarm goes off, it steals your mobile phone, randomly shuffles through your contact list and calls someone every three minutes after the desired wake up time. Sleepyheads will not only have to brave early morning conversations, they'll have to explain why they're the one making the call. Top 6. This could be right up your alley In a country where bigger is often better, the smaller things still pull some hefty weight. New York's skinniest home, offering two bedrooms, two bathrooms and a list of previous owners including a famous poet and an anthropologist, has sold for nearly AU$2.3M, local news hub NY1 reports. The 3 x 12 metre building in Greenwich Village was built in 1873, in a space that was once an alley between two larger homes. Top

Latest Property News from Ted Hanson

Welcome back "It is good to have money and the things that money can buy, but it's good too, to check up once in a while and make sure you haven't lost the things money can't buy." ~George Lorimer~ 1. Where will you be living in 2050? Can you imagine living in a vertical city where the top levels generate solar and wind power to the levels below? This was one of the many intriguing ideas that came to light in a recent competition on how our metropolitan centres could look in the near future. The national Ideas for Australia's cities 2050+ competition was run by the Australian Institute of Architects' 2010 Venice Architecture Biennale Creative Directors, John Gollings and Ivan Rijavec, to source material for the 2010 exhibition in the Australian Pavilion in Venice. The team's two-part 'NOW + WHEN Australian Urbanism' exhibition will highlight three of Australia's most interesting urban regions as they are 'NOW', before dramatically representing around seven futuristic urban environments from the competition as they may be 'WHEN' we reach 2050 and beyond. The competition fired the imagination of Australia's architects and designers, resulting in inspired, possible solutions and imaginative proposals addressing the critical issue of Australian urbanism - examining possibilities across the terrestrial, underwater and airborne realms. Shortlisted ideas range from proposals for: * New cities housing between 50,000-100,000 people in current desert areas to address our expected population growth; * Cities in which urban development is concentrated in 'peripheral' areas, such as large landholdings on university campuses, 'big box' shopping centres, business parks, industrial estates, recreational reserves, and market gardens to establish a series of interlinked, self-sustaining districts dispersed along a transport ring. * Cities which feature a 'tartan-like texture of pure urban areas (or cells), pure rural cells, and cells which are a hybrid of rural and urban', providing a 'vital flexibility for a sustainable future'. * Cities designed for 'urban life without fear', based on the belief that 'any design for a good, sustainable city for the 21st century will demand a theory of hope and the desirable'. * Cities in which 'within tightly controlled boundaries exist Multiple Cities'. Cities which address issues such as: what if a city grows not out, but up or down? What if a city's growth boundary is not on its periphery but at its heart? What if new planning initiatives were introduced governing the use of air space? 'A Green City, where the top plane provides wind and solar energy to power (and cool) the multiple cities below', as well as all food production. * Cities 'woven into the landscape' - balancing dense human settlement with flora and fauna biodiversity, with major roadways converted into natural landscape corridors. * Cities hugging the coast from Noosa to Geelong to accommodate population growth and the preferred coastal climate; connected by a 'very fast train running from North Qld to Victoria; pockets of vertical sprawl; new cities in pristine locations such as Botany Bay and the Royal National Park. The Creative Directors said those shortlisted were far more than hypotheticals. Each uniquely responded to future challenges including population growth, environmental degradation, dwindling resources and climate change. Each entry reflected a highly creative diversity of possibilities fused with a diversity of design that mapped out possible cities of the future. Co-director Ivan Rijavec, Principal of innovative Australian architectural practice Rijavec Architects, said that the exhibition has spotlighted our most pressing national concern - how we best manage our cities and their future growth. "We currently have 93 per cent of Australians living in urban environments being affected every living minute by the way in which our cities function", Mr Rijavec said. "The number of responses received for this competition confirms that in Australia and internationally, urbanism - more than at any other period in history - has become fundamental to our prosperity and critical to our survival." Top 2. What's cooking in your kitchen? LCD/plasma TVs, freestanding stoves and dishwasher drawers were among the most popular additions in many kitchen makeovers in 2009, according to a new report from the Housing Industry Association (HIA). The HIA Kitchens and Bathrooms Report for 2009/10 reviews the amount of money Australians spend each year on kitchen and bathroom renovations. It predicts the value of `K&B' installations and renovations will hit a record $12 billion by 2012. The report surveyed hundreds of small to large businesses in the K&B industry, detailing the average cost of new installations and the types of materials and appliances consumers are demanding in their kitchens and bathrooms. In 2008/09 there were 130,650 new dwellings started in Australia, valued at an average value of around $260,489. The average value for both a kitchen or bathroom installation was around $14,000. "One of the strongest growth categories within the kitchen and bathroom sector in recent years has been the use of high-end hardware and storage solutions," Dr Dale said. "The growth in the use of storage solutions held steady for lazy susans in the 2009 survey, but increased for every other category." The fastest growth was for soft closing drawers. "Lift-up door operating systems and touch opening door and drawer systems also grew in popularity", he added. In terms of kitchen appliances, the greatest increase was for wine cooler/fridges, LCD/plasma TVs, and European freestanding stoves and dishwasher drawers. The survey found the most popular components replaced in a bathroom makeover were basins, vanity units, tap ware, and tiling. There was also a large increase in semi-frameless shower screens, multiple basins, and multiple showerheads compared to previous surveys. Under-mount sinks continue to be the fastest growing sink. The 2009 survey also asked respondents about various materials types and their usage. "Engineered stone, solid surface and granite bench tops were all in high demand. But there was a decline in usage rates for stainless steel, concrete, and timber bench tops," Harley Dale said. "Glass and engineered stone splashbacks are on the rise, but there's a decline for granite and tiled splashbacks." Corner drawer systems and water filtration systems were also a hit, the survey found. Top 3. First time homebuyers shun McMansions First time homebuyers are searching for cheaper and smaller homes located further from city centres in their attempt to break into the housing market, according to a recent survey. The latest Bankwest/Mortgage and Finance Association of Australia (MFAA) research report also uncovered an unprecedented shift in behaviour among renters, with an increasing number saying they are prepared to forego the lifestyle advantages of renting for the perceived security of buying. Interestingly, buyers are also increasingly turning their back on super-sized McMansions. "The financial crisis has changed the aspirations of home buyers, effectively downsizing the great Australian dream," said Phil Naylor, CEO, MFAA. Mr Naylor said that 47.9 per cent of first time buyers are now looking to purchase a cheaper property than otherwise intended. The MFAA/Bankwest Home Finance Index canvassed the opinion of 850 people on a range of issues relating to first home buyers. Mr Naylor said first time buyers have resorted to a number of measures to enable them to enter the property market, such as looking for a smaller property (32.3 per cent) and seeking out an older property rather than moving into a new home (24 per cent). "While Australia has the largest new home sizes, it seems first time buyers are turning their back on the McMansion dream and are looking at buying a home instead of a super-sized property that makes a statement about their lifestyle or prestige," Mr Naylor said. Another 31.3 per cent said they are looking for properties further from city centres. Head of Mortgages at Bankwest, Dean Gillespie, said the survey found 43.8 per cent of first time buyers are toning down their lifestyle and putting money aside in case the economy deteriorates. "In contrast to claims that first time buyers are likely to default on their loans as interest rates increase, these figures suggest that first time buyers are saving to prevent that from occurring," Mr Gillespie said. "First time buyers are actively saving to protect themselves from an economic downturn, which suggests people are more strategic than they are given credit for." Mr Gillespie said about one in five renters were happy to keep renting so they could maintain their current lifestyle and avoid sacrificing home size, location and proximity. "Some renters seem perfectly happy to continue renting, but they are clearly still in the minority," Mr Gillespie concluded. Top 4. A house to fly for? The Butterfly House is an amazing refurbished home belonging to a family of four in Surrey, England. Inspired by the life cycle of a butterfly, different parts of the house represent each phase from the larval stage (the hallway), through the chrysalis (the staircase and conservatory) to the winged canopies outside that depict the emerged butterfly. The surreal home is built of timber, Kevlar sails and steel, copper and plastic ducts, as well as about two kilometres of bungee rope, one hundred metres of fibre optic cables and fifty interwoven carbon fibre fishing rods. Actual butterflies are attracted by plants including lavender and hebe, in a garden that meanders throughout the house. Top 5. How much is that garden in the window? More and more, we're seeing that you don't need a property in the country to grow your own food and in fact, you don't even need a back yard. Many Australians are recognising the benefits of having at least some tomatoes, lettuce and herbs growing on a balcony or in pots. Window Farms make it even easier. In essence, they are vertical, hydroponic, modular, low-energy, high-yield edible window gardens that you can easily build at home using low-impact recycled materials from your local area. A Windowfarms project has recently been established, dedicated to helping people all over the world get their vertical gardens growing, as well as providing an online forum for domestic green-thumbs to share ideas, tips and stories. For more information visit windowfarms.org.

Merry Christmas and a Happy New Year to all our past present and future customers and clients.

Latest Property News from Ted Hanson

Friday 18 December 2009 Merry Christmas! Wishing you all the best for the holiday season. In the news this week, Aussies still want to buy houses; and looking after the little guys while you're away on holiday... 1. More loans for new housing Lending for new homes continues to increase, according to figures released this week by the Australian Bureau of Statistics. Loans for the construction of new dwellings and the purchase of newly-built homes combined increased by 5.7 per cent in October, following a rise in September. New housing loans have increased in 13 of the past 14 months. New investment housing did not fare so well, dropping by 0.6 per cent. Loans for new investment housing were down 10.5 per cent over the last 3 months relative to the corresponding period last year. During October, loans for the construction of new dwellings increased by 9.2 per cent, while loans for the purchase of newly-built dwellings dropped by 3.9 per cent. The total number of seasonally adjusted loans for owner-occupiers (net of refinancing) fell by 1.5 per cent in the month of October 2009 but was up by 37.4 per cent compared to October 2008. In seasonally adjusted terms the total number of owner-occupier loans (net of refinancing) in October 2009 declined in New South Wales (5 per cent), Queensland (0.6 per cent), Victoria (0.4 per cent), the Australian Capital Territory (1 per cent) and South Australia (3.8 per cent). The total number of loans increased by 0.8 per cent in Western Australia, the Northern Territory (7.9 per cent) and by 6.2 per cent in Tasmania. Top 2. Home comfort More than one third of Australians plan to buy a property in the next two years despite concerns over interest rates and higher living costs, according to the annual Consumer Sentiment Survey commissioned by mortgage broker, Mortgage Choice. The results indicate the country's more positive economic outlook is prompting almost half (40 per cent) of Australians to revisit their financial plans. Furthermore, 40 per cent of responding mortgage holders believed they could afford to make repayments at an interest rate of over 11 per cent. Mortgage Choice senior corporate affairs manager, Kristy Sheppard said that since the global financial crisis hit home, more borrowers are taking ownership over their financial situation and although many see rates as concerning, a high percentage are prepared for rate rises of at least five percentage points, which is much higher than is being predicted for the next couple of years. "This suggests many borrowers can comfortably repay their home loan sooner, if they put their mind and budget to it", Ms Sheppard said. "Improved sentiment from Australians around their livelihoods is also terrific to see. When compared to last year's results, job security slipped from the top of the `biggest concern' list to third place this year, behind interest rates rises and other costs of living." The survey data shows that for 2010, respondents were most concerned by interest rates (19 per cent of respondents) and other costs of living such as utility bills and clothing (17 per cent) than they were about their job security (16 per cent) and economic management at Federal Government level (15 per cent). Last year, the major personal concerns were job security (20 per cent), followed by economic management at Federal Government level (18 per cent) and other costs of living (17 per cent). This aside, almost three quarters of this year's respondents were confident the Australian economy would be strong during 2010, so much so that almost half of those without a mortgage (41 per cent) planned to take the leap into property ownership within the next two years. When asked to consider higher mortgage interest rates, 40 per cent of mortgage holders said they could afford a rate increase of more than five percentage points before they would need to consider selling their property. 17 per cent of those said they could afford `any' increase - the second most popular response. On the lower end of the scale, 14 per cent could afford four to five percentage points, 13 per cent between three and four points, 15 per cent between two and three, and 6 per cent between 1.5 and 2 percentage points. 6 per cent said they couldn't afford any rate rise before considering selling. Over half of all respondents (57 per cent) felt the global financial crisis had made investing in property seem safer than shares. Generation Y was the most comfortable investing in property, with 62 per cent believing property is safer. 58 per cent of Baby Boomers agreed and 56 per cent Generation X. Western Australia had the highest percentage of respondents who believed this to be the case, at 61 per cent. "As a housing market service provider, Mortgage Choice is pleased to see 41 per cent of respondents planning to buy property in the next two years and 43 per cent of them planning on an investment property. Hopefully, increasing demand from this buyer group will stimulate more housing construction," Ms Sheppard said. Top 3. Take a gander at George's house! No one knows exactly why George Stacy chose to construct his family home in the shape of a goose. The railway worker just came up with the concept impulsively, his wife Ollie says. "He came home one day with the idea in his mind, I have no idea how he came up with that notion". In fine Darwinian form, Stacy shot down a sacrificial goose and used the carefully prepared carcass as a scale model of his vision. This would provide a natural blueprint. For six years, the Stacys lived in an old shack above the site whilst construction was taking place. Determination was key, and without the money to build continually they had to "work a while and build a while", Ollie recalls. The result is a truly unique home featuring eight egg-shaped windows, two of which contained car lights that served as life-like goose eyes. Ollie reports that at one stage these lights would blink to passing motorists. Sandstone from the local creeks, most of it hauled to the site by Stacy's three sons, was used for the external walls. Akin to the model, the roof of the building is ribbed, with a `head' protruding about 15 feet high. There is a tail at the other end of the roof and the entire building sits within an oval `nest'. Completed in 1940, the Mother Goose building in Hazard still continues to attract attention around the world and has been featured in the New York Times and on the Oprah Winfrey Show. Although George Stacy has passed away, his monumental display of imagination and creative genius lives lives on. Not only as the `Mother Goose' building, but as concrete reminder of the magical imagination that lies within us all, just waiting for a chance to hatch out. Top 4. It's what's outside that counts If you're planning to go away for the holidays, spare a thought for your buddies who stay behind to keep an eye on the house. Just as you make arrangements to have your pets and plants cared for, it is important to ensure there is shelter and water for the variety of birds, lizards and a number of other insects and small animals that share your patch. Not only do these critters live and find food in your backyard, but they also play an important role in maintaining the biodiversity of our land. Birds, bees and butterflies help propagate the plants, while the bluetongues, skinks and frogs all love to hunt and eat garden pests. The National Parks and Wildlife Foundation, through its Backyard Buddies initiative, offers a few suggestions of things you can do to make sure your co-habitors enjoy their summer too: Install a bird bath. Your feathered friends will love to splash and cool down. You can even add a timer to your pond or birdbath to keep water fresh and clean. If water restrictions are an issue, birds love to roll around in a shallow sand bath. Make sure the bath is beyond the reach of neighbourhood moggies - spiky ground cover makes an effective and attractive natural barrier! Tadpoles are growing legs and will be looking for ponds, so keeping yours in good shape while you are away could see some new residents move in. Again, a timer is a cheap and simple way to keep water levels stable for your plants, fish and frog buddies. Add shade and plenty of leaf litter or fallen bark for your smaller visitors. Before you go, how about adding some rocks and logs in a corner of your backyard? They provide shade and shelter for lizards and other small animals while you are away, and these guys will keep your backyard free of snails and other pests while you're on holidays. Top 5. Housing starts up Housing starts increased by 9.4 per cent in the September 2009 quarter, according to figures released this week by the Australian Bureau of Statistics. The seasonally adjusted estimate for new private sector house commencements rose 8.1 per cent following a rise of 5.1 per cent in the June quarter. The estimate for new private sector other residential building Top 6. Staircase je t'aime Ever had a friend or relative go to France and bring you back a tiny model of the Eiffel Tower? Here's one sure to trump their gift - a 40-step section of spiral staircase removed from the Eiffel Tower was sold by auction recently. Part of a flight of stairs dismantled in 1983 when elevators were installed, the 7.8 metre section sold for A$136,000 in Paris to a man who also bought a piece of the Berlin Wall.

Latest Property News from Ted Hanson

Friday 11 December 2009 It is amazing what you can accomplish if you do not care who gets the credit. Harry S Truman 1. Australian PCI®: Construction falls as demand weakens The number of houses being built has grown for the past five months, but not enough to prevent the national construction industry from contracting in November, according to the latest Australian Industry Group/Housing Industry Association Performance of Construction Index (Australian PCI®). The seasonally adjusted Australian PCI® was down 3.3 points to 47.6 for November, slipping below the critical 50 point level separating expansion from contraction. Australian Industry Group Director Public Policy, Dr Peter Burn said that a slump in apartment building and a further decline in engineering and commercial construction underpinned November's results. "Despite the fall, the performance of the sector was still well above the lows of early this year", he said. The index shows that the housing sector has continued to grow, although the rate of improvement has slowed over the past two months due to a weakening in first home buyer activity. Across the sectors, the apartment activity index dropped 4.7 points to 48.5. The engineering and commercial construction indexes also fell below 50 for the month. House building grew for the fifth consecutive month, taking the sub-index to 51.1 for November. "With little price pressure, and trade availability still considerably better than it was up until late last year, it is a good time to engage in renovating an existing property or building a new home", Harley Dale said. Top 2. Investors still hungry Appetite for new apartments has been resilient, despite interest rate rises, according to a recent survey released by industry analyst and economic forecaster, BIS Shrapnel. BIS Shrapnel's Home Buyer Monitor survey, which was conducted after the November 2009 rate rise, showed that 30 per cent of all households looking to purchase a dwelling were investors. This proportion was unchanged from the previous survey in August 2009, indicating that investor appetite was unaffected by the initial rate rises. The low rate of medium and high-density dwelling construction is largely attributable to tighter lending restrictions on development projects. BIS Shrapnel says it is uncertain as to how long it will be before lending restrictions are eased and, even if some improvement were to occur in the near future, it would be some time before supply improves as most medium and high-density dwelling projects take 12 to 18 months to complete. BIS Shrapnel Senior Economist Jason Anderson says the forecast growth in rents will complicate the Reserve Bank of Australia's fight against inflation. "Continued strong growth in residential rentals will limit the potential decline in underlying inflation measures," he says. "Given that underlying inflation remains high, relative to the Reserve Bank of Australia's target range, we expect that the escalating shortage of rental properties will be a significant factor contributing to further interest rate rises. "Higher interest rates would dampen the construction of new dwellings, exacerbate the housing shortage, and thereby place upward pressure on rentals. This dilemma is set to become much more evident during 2010." BIS Shrapnel says the causes of escalating housing costs require close attention from governments at all levels. Australia is nearing the end of a decade where housing costs have risen far more sharply than the price of overall household good and services. During the 1990s, the housing component of the Consumer Price Index (CPI) was flat, and did not contribute anything to inflation over the decade. However, over the ten years since the start of the millennium, the housing component of the CPI has risen by 56 per cent, which is well above overall CPI inflation of 36 per cent. "To put this in perspective, housing costs have jumped by more than the social `bads' of alcohol and tobacco, for which average prices have risen by 55 per cent over the decade, and are transparently affected by rising government levies," says Anderson. "The burden of government charges and policies on housing are more indirect, but pervasive. Both owner-occupiers and renters are being affected and unlike cigarettes and alcohol, housing is not a service that can be picked-up `duty free'." Top 3. Impact of climate change on coastal homes Almost half a million existing Australian homes could be under water by 2100, according to a report released by the Department for Climate Change mapping the impacts of climate change on Australia's coastal communities. The report - Climate Change Risks to Australia's Coasts - is the first continental scale mapping of residential buildings at risk from climate change. Focusing particularly on risks to residential buildings from inundation and erosion, the report identifies areas at high risk and what can be done to reduce the impact Key Findings: Of the 711,000 existing residential properties close to the water, between 157,000-247,600 properties are identified as potentially exposed to inundation with a sea-level rise scenario of 1.1 metres. Nearly 39,000 properties are located within 110 metres of `soft' shorelines and at risk from accelerated erosion due to sea-level rise and changing climate conditions. The current value of existing residential buildings at risk from inundation ranges from $41 billion to $63 billion (2008 replacement value). Decisions on future development, particularly in areas highly exposed to the impacts of climate change, should not increase risk. Government roles in planning and setting benchmarks will be central to risk management, and there is a high level of public good assets in the coastal region. The rising value and number of coastal properties (as a result of this increasing supply and increasing population) in turn exacerbates risk exposure from climate change impacts. Some development and related land use decisions may need to be further constrained to ensure climate change impacts will not come with further exacerbated risks. The full report can be downloaded at: http://www.climatechange.gov.au/publications/coastline/climate-change-risks-to-australias-coasts.aspx Top 4. Average mortgage hits all-time high Mortgages in Australia have hit a new high, according to a report released this week by mortgage broker AFG. The average new mortgage arranged in Australia in November reached $367,000, the highest on record. The AFG Mortgage Index shows that mortgage sizes have been on the rise since the middle of the year, having increased by 6.4 per cent since May. Supporting recent reports of increasing property prices, average mortgage sizes have grown particularly strongly in Victoria (up 12.1 per cent since May) and New South Wales (up 10.7 per cent), but less so in WA, where they rose by 3 per cent and Queensland, where they have held steady since May. November also saw the continuing re-emergence of property investors, who accounted for one in three of all new mortgages arranged (33.8 per cent), the highest such figure all year, and well up on the one in four (24.7 per cent) figure for March when investment reached its lowest point. However, overall monthly sales of mortgages in November declined for the second month in a row, off the back of increasing interest rates and sharply declining First Home Buyer numbers. First Home Buyers accounted for just 13.7 per cent of all mortgages arranged in November, compared to 28.1 per cent at their peak in March this year. The Index also shows a slight change in the balance of lenders from banks to non-banks during the past two quarters, suggesting that second-tier lenders are becoming somewhat more competitive as global credit conditions ease. Top 5. Bots spice it up The holiday season is a time when many of us find family and friends filling our homes and crowding around the table at mealtimes. It's also a time to cast our minds back two millennia to the manger scene, or bring a futuristic edge to the table with robots that serve food. Well, serve salt and pepper, at least. Salt & Pepper Bots are little wind-up toy robots that will walk salt and pepper around the table, so they won't need to pass through 10 hands this Christmas lunch just to get to you. Top 6. No window of opportunity here Imagine not being able to open a window in your home because your neighbours are worried about you looking into their house. That's the situation facing a British couple, who recently appeared in court for breaching planning consents that forbid their bathroom window from being opened, the UK Daily Mail reported recently. When Tony and Carmen George proposed to extend their house, the neighbours objected to the window being located in a position that allowed the Georges to see into their home. The council allowed the window, but said it must remain closed at all times. When investigating a possible leak that was causing damp around the window, the Georges opened the sealed window in 2008 and received a notice from an enforcement officer. A more recent attempt to find the cause of the damp received a complaint from the neighbours, resulting in the court summons. Talk about being stuck between a rock and a hard case.

Latest Property News from Ted Hanson

Friday 04 December 2009 Quote of the Week "The difference between a Flower and a Weed is a Judgment." ~Author Unknown~ 1. House prices on the rise Australia's housing market bounced back strongly in October after a relatively flat September, according to a report released this week. The RP Data-Rismark National Capital City Hedonic Index shows that Australian home values rose by an indicative 1.4 per cent in the month of October after just 0.4 per cent growth in September. Over the first ten months of 2009, Australian home values have now risen by 10 per cent following on from their 3.8 per cent peak-to-trough falls in 2008. rpdata.com's Senior Research Analyst, Cameron Kusher, remarked that the strong growth figures show that the market is very resilient and that the 25 basis point interest rate increase during the month has not immediately impacted the market. Rismark International Managing Director Christopher Joye added that while a resilient recovery had been forecast for 2009, it was good to see such a strong growth, which reflects Australia's better-than-expected employment and growth outcomes. "We project that as mortgage rates normalise, capital growth rates will fall back to more subdued levels", Joye said. Cameron Kusher said the likeliness of further interest rate rises over the next 12 to 18 months is likely to result in more normal growth conditions over 2010. "The removal of the First Home Buyers Grant Boost and higher loan costs will also result in greater pressure on the rental market," he said. "According to our analysis of all home sales in Australia, which we have privately shared with the RBA, the median Australian home value is only four times average disposable household incomes", Joye commented. "This is inconsistent with claims that Australian dwelling prices are 6-8 times household incomes. "People forget that 40 per cent of the housing stock is not located in the capital cities. "This data implies that Australian housing is not expensive by overseas standards, and also helps explain our internationally high rates of home ownership combined with very low mortgage default rates." Joye remarked that one question exercising people's minds is the impact of higher interest rates, yet the Reserve Bank (RBA) has pointed out that when they cut mortgage rates by 40 per cent in the second half of 2008 most borrowers did not actually reduce their repayments. In the RBA's October Board Minutes, the Bank noted: "[M]any households with home loans had not sought to lower their monthly payments when mortgage rates had fallen and had instead paid down their loan balances ahead of schedule. This would reduce the vulnerability of that part of the household sector to rising mortgage rates." "The RBA suggested that this means that borrowers should be able to absorb future rate hikes as mortgage costs normalise," Joye concluded. Top 2. The Reserve Bank of Australia again raised the official cash rate by one quarter of a percentage point this week, bringing it back to 3.75 per cent. This is the third consecutive monthly increase since rates bottomed at 3 per cent earlier in the year in response to the Global Financial Crisis. Announcing the decision, Reserve Bank Governor Glenn Stevens said that with the risk of serious economic contraction in Australia having passed, the Board has moved at recent meetings to lessen gradually the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. "These material adjustments to the stance of monetary policy will, in the Board's view, work to increase the sustainability of growth in economic activity and keep inflation consistent with the target over the years ahead", Governor Stevens said. Top 3. Protect your position This week's announcement by the Reserve Bank of another successive rate rise will lead more borrowers to move to protect their financial position and prepare accordingly for the new rate cycle ahead, according to Resi Mortgage Corporation. Resi's Head of Consumer Advocacy, Lisa Montgomery says although this rate rise may only add around $46 to monthly repayments on an average $300,000 loan*, which in isolation seems a manageable figure, the effect of these rate rises will compound as more occur. "During the decade prior to the GFC, even when interest rates were rising, Australians were spending like never before - but thankfully there now seems to have been a shift to borrowers being more aware of the implications of their spending and the options available to them", she says. "However, despite this trend, it is inevitable that there will still be some who will be caught short as more rate increases occur and as with planning for anything - protecting your position is the key." Montgomery says for many mortgage holders, now is a good time to do an audit of their home loan and its features and determine whether it is still providing them with the flexibility they may need in the future. "See if you can negotiate a better rate with your lender and if that's not possible, consider shopping around for a lender with a more valuable service proposition", she suggests. In the current climate of rising rates there are several things that each category of borrower might take into consideration: OWNER OCCUPIERS: Always allocate more funds for your current mortgage repayments which will give you breathing space for rate rises, as well as providing a slush fund for any necessary works you may have to carry out on your property. Limit discretionary spending, particularly during the festive period when budgets can blow out. FIRST HOME BUYERS: Hold off on purchasing everything new to go with the new house and instead acquire household items as you can afford to pay for them - preferably in cash. Don't rack up additional debt if you don't need to. With rental demand still high and provided your living circumstances allow for it, consider taking in someone to rent a room and help you pay your mortgage. INVESTORS: Don't take it for granted you will always have tenants to help you pay the mortgage - have a plan B ready in case the property is untenanted for any period such as having funds set aside to continue paying the mortgage or moving in yourself if your situation allows Remind yourself that repairs and maintenance costs are a necessary part of owning an investment property so allow for them in your annual budget and remember they are tax deductible and will over the long term add value to your property. Monthly repayment figures based on an average $300,000 principal and interest standard variable loan taken out over 25 years. * Monthly repayment figures based on an average $300,000 principal and interest standard variable loan taken out over 25 years. Top 4. Apartments bring down approvals October saw a large drop in the number of building approvals for units and townhouses, causing an overall drop for the month, according to figures released this week by the Australian Bureau of Statistics. Total seasonally adjusted building approvals eased by 0.7 per cent in October, driven by a 17.9 per cent drop in multi-unit approvals. On the other hand, detached house approvals increased by 5.7 per cent following an upwardly revised 1.1 per cent gain in September. Building approvals increased in three states and fell in three states in October. The number of seasonally adjusted residential dwelling approvals increased in October by 10.5 per cent in Tasmania, 9.7 per cent in Western Australia, and 4.2 per cent in Queensland. Approvals dropped by 10.2 per cent in New South Wales and were down by 4.5 per cent in South Australia and 0.3 per cent in Victoria. The trend number of approvals increased by 2 per cent in the Northern Territory and by 1 per cent in the Australian Capital Territory. Commenting on the data, Master Builders Australia Chief Economist Peter Jones said that the negative headline figure masks encouraging strength in the growth of new house approvals, but cannot hide the extreme volatility occurring around a disastrously low base in `other dwellings' approvals. "Investor-driven building of units and apartments continues to be affected by the credit crunch with approvals running at an annualised 35,000 - still 40 per cent below the peak", Jones said. "The concern is that the fragile housing recovery is still very one-dimensional, and remains hamstrung by tight lending requirements affecting investor-driven unit and apartment builders", he added. Housing Industry Association Chief Economist, Dr Harley Dale said that building approvals levels currently implied around 145,000 housing starts per year, well short of the new homes required to meet Australia's rapidly growing population. Top 5. Breaking the bank As we watch the four major banks rush to increase interest rates this week, one establishment on the other side of the world has been hit hard for not looking after the little guy. According to the New York Post, a US couple has received a blue-moon-style Christmas present after a judge - outraged at OneWest bank for what he called harsh, repugnant, shocking and repulsive behavior - cancelled their half-million dollar mortgage debt. The decision saw over AU$315,000 erased on the principal and $255,000 in interest and penalties cancelled from the bank which had received over $887.3M in the Federal bailout, yet still had a record of cold-bloodedly foreclosing on any homeowner owing money. The bank is reportedly involved in a similar case in California, where it's trying to foreclose on an 89-year-old woman, despite two court orders telling it to stop. Top 6. The lighter side of clouds Every cloud may have a silver lining, though seeing it isn't always so simple as flicking a switch. At least it wasn't, until Silver Lining in a Box - a lamp that uses light to paint your walls with the silver lining of cloud shapes. Hand-assembled with a production process that minimises the environmental impact, it's an easy way to keep the brighter side in sight. Top