hotspotting

50% favour boarder to help with bills

Wed, 01 Jul 2009 23:00:22 +1000

A poll by PRDnationwide shows one in five homeowners would consider having someone rent a spare room to help pay the mortgage.

Another 14% of respondents already have someone renting a room and a further 15% would if they had space.

PRDnationwide research director Jonathan Rivera says the results are not surprising given the current economic climate.

“Having someone contributing $100 a week to rent a spare room could be the difference between struggling with bills or not,” he said. “Making unused space in your home earn its keep is an option that more and more people are investigating.”

Rivera says many homeowners buy properties with a granny flat or spare bedroom to give them the choice of renting it out, though they have not actually done it. But in today’s economic climate, people are starting to realize the capital on this extra room.

Finding a lodger is easier than ever, with a plethora of flatmate websites, he says.

Law service challenges bank fees

Tue, 30 Jun 2009 22:47:00 +1000

Consumer compensation law firm Financial Redress has started a service to help home buyers challenge banks charging excessive exit fees on the early repayment of mortgage loans.

Managing director James Middleweek says people seeking compensation for excessive fees charged by banks have “inundated” the law firm with their claims. These relate mainly to penalty charges on savings and credit card transactions and exit fees on loans.

House mortgage customers in particular are complaining to Financial Redress about exit fees, also called break fees. “The figures involved can run into tens of thousands of dollars a time,” he says. “These excessive break fees have left our clients feeling very aggrieved.

“Whether its poor disclosure, lack of transparency, mis-selling, or simple profiteering, will depend on the facts of each case. Either way, consumers feel that once again they are being massively short changed by financial institutions.

“We believe many clients could be due substantial compensation.”

He says Financial Redress provides break fee advice for a fixed fee of $200 plus GST.

Adelaide vacancies tighten to 1.5%

Mon, 29 Jun 2009 17:34:57 +1000

Despite evidence of a slowing rental market, Adelaide’s vacancy rate tightened to 1.5% in May, according the Real Estate Institute of South Australia.

The West continues to record a vacancy rate above 2% while the South and City areas have vacancy rates below 1%. Anecdotal evidence from property managers suggests tenants are shying away from beachside areas (West precinct) in the cooler months, preferring suburbs close to the CBD that offer access to public transport and essential facilities.

The North and East areas have vacancy rates between 1.3% and 1.6%, while the Adelaide Hills continues to report zero vacancies.

NSW rental market tightens further

Thu, 25 Jun 2009 11:08:41 +1000

Sydney’s rental vacancy rate is at its lowest level in 12 months, according to the latest data from the Real Estate Institute of NSW.

The percentage of available rental properties across Sydney dropped from 1.5% in April to 1.0% in May. It’s the lowest vacancy rate recorded since May 2008 and is described by REINSW president Steve Martin as “extremely disappointing”.

Vacancies are highest in the Middle Ring suburbs at just 1.5%. The REINSW says the Inner Ring suburbs have 1.4% vacant while the Outer Ring suburbs have only 1.0% of rental properties available for tenants.

A tight rental market is a common theme throughout the state, according to the REINSW figures. Newcastle recorded 1.5%, Wollongong 1.2%, the Central Coast 1.6% and the Mid North Coast 1.8%. The only locations with vacancy rates above 3% are Coffs Harbour (3.3%) and the South Coast (3.5%).

“These results are a double-edged sword: great news for landlords but grim news for tenants,” Martin says.

“The results for Sydney and Wollongong are concerning and show that despite falls in interest rates and additional first home buyer incentives, the rental market remains extremely fragile.”

NSW cuts stamp duty on new homes

Mon, 22 Jun 2009 16:59:31 +1000

The NSW State Government is cutting the stamp duty on newly-built homes by buyers who are not first-home buyers. It cuts stamp duty for second-home buyers and investors, reducing the tax 50% for properties under $600,000.

The NSW Housing Construction Acceleration Plan, announced in the State Budget, starts on 1 July and will save investors and home buyers up to $11,245 on properties worth less than $600,000. First-home buyers are already exempt from stamp duty on homes up to $500,000.

After 12 consecutive Budget surpluses, Treasurer Eric Roozendaal’s FY2010 Budget will be $1.3 billion in deficit and not return to surplus until FY2012.

The Government predicts a moderate economic recovery in NSW in 2010 but unemployment is forecast to rise from 6.4% now to 7.75% during FY2010 and 8.5% in FY2011. Much stronger growth of 4% is predicted for 2012.

The Budget forecasts $63 billion in spending on infrastructure over four years to support 160,000 jobs per year. The $24 billion on transport over four years includes the $2.7 billion CBD Metro. Spending commitments for FY2010 include $7.1 billion on transport, including $3.1 billion on new train carriages and buses, as well as $2.5 billion on roads (up 16%). Health spending includes upgrades to the Liverpool, Royal North Shore and Nepean hospitals.

Qld to spend $18bil on infrastructure

Sun, 21 Jun 2009 17:53:30 +1000

The Queensland Government says its State Budget is designed to protect existing jobs and create new ones.

Key spending in the Budget includes $18 billion on infrastructure in FY2010, including $7 billion on transport and roads, $1.3 billion on health, $3.2 billion on energy, $1.8 billion on education and $1.45 billion on social housing.

Specific projects to receive funding include the Wyaralong Dam ($171 million), the Northern Pipeline Interconnector ($211 million), the Toowoomba pipeline ($121 million), the Traveston Crossing Dam ($75 million), a research centre at the new Children’s Hospital ($80 million) and the Gold Coast Rapid Transit project ($135 million).

The State Government has increased the exemption for stamp duty on the purchase of housing land. First-home buyers currently can buy land worth up to $150,000 without paying stamp duty and the threshold will rise to $250,000 on 1 July. The saving for first-home buyers is $5,675 on a block worth $250,000.

The forecast Budget deficit for FY2010 is $1.95 billion, with reduced revenue from property taxes and mining royalties. The State Budget predicts unemployment to rise from 5.3% now to 7.25% in two years.

The state’s economy is forecast to decline 0.25% in FY2010, the first contraction since FY1983. But positive growth of 2.75% is predicted for FY2011.

RBA leaves interest rates unchanged

Tue, 02 Jun 2009 15:18:12 +1000

The Reserve Bank of Australia decided today (Tuesday, 2 June) to leave official interest rates unchanged. The official cash rate remains at 3%, the lowest rate in almost 50 years.

Its decision comes against a background of improving economic data, with a sharp improvement in the nation’s international trade deficit in April. Building appovals also improved in April, the third consecutive month with rising approvals, while retail spending remains at record levels and sales of new homes continue to increase.

Nine months ago, in September 2008, official interest rates stood at 7.25% but by April 2009 had been cut to 3%. The RBA next meets on 7 July.

Sydney vacancies up - but still only 1.5%

Mon, 01 Jun 2009 23:21:29 +1000

Sydney rental vacancies are at their highest level in two years - but remain well below 2%.

The Real Estate Institute of NSW says Sydney vacancies increased 0.3 percentage points to 1.5% in April. It says many former renters are becoming first-home buyers, freeing up rental stock.

Vacancies are now the highest since October 2007 but still at a level where supply does not match demand.

Newcastle went against the state trend, with rental vacancies down from 2.2% to 1.7%, the REINSW says.

Adelaide vacancies still below 2%

Wed, 27 May 2009 20:36:23 +1000

The vacancy rate in Adelaide continued to ease in April, but still remains below 2%.

The Real Estate Institute of South Australia (REISA) said the vacancy rate for metropolitan Adelaide moved to 1.77% in April.

The REISA vacancy rate survey is broken down into six main areas:-

City and North Adelaide: 2.3%; Western Suburbs: 2.1%; Southern Suburbs: 1.95%; Eastern Suburbs: 2.2%; Northern Suburbs: 1.3% ; and Adelaide Hills: 1.3%.

ENDS

WA units win first Green Star rating

Tue, 26 May 2009 18:35:00 +1000

A residential development in Western Australia has been awarded Australia’s first ever Green Star residential rating from the Green Building Council of Australia (GBCA).

“The Summer” has been awarded a 4 Star Green Star – Multi Unit Residential PILOT certified rating, following its participation as a national pilot project. GBCA chief executive Romilly Madew says residential buildings in Australia are responsible for 13% of the nation’s greenhouse gas emissions.

“While Australia’s level of greenhouse gas emissions per home is one of the largest in the world, buildings also offer one of the cheapest and easiest opportunities for greenhouse gas abatement,” he says.

GBCA’s Green Star executive director Robin Mellon says The Summer demonstrates that residential developments can go ‘above and beyond’ minimum requirements and reach best practice outcomes by focusing on good passive design principles such as orientation, shading and natural ventilation.

“It’s also great to see best practice in sustainability go hand-in-hand with good design aesthetics – a clear signal to the industry that ‘green’ and ‘good architecture’ are compatible,” Mellon says.

Located on South Beach Esplanade in South Fremantle, The Summer will incorporate a range of environmental design techniques to re-use 80% of the site waste, provide 90% of apartments with dual aspect to allow natural ventilation and introduce moveable screens on balconies to provide solar shading.

Aust homes seen as gold-like haven

Wed, 20 May 2009 22:29:00 +1000

Australian residential property has joined gold as a safe haven for investors disillusioned with equities and terrified other assets will be eaten away as measures to combat the financial crisis prompt a spike in inflation. So says investment firm Whiterock Capital Partners.

Andrew Donnelly, Whiterock’s chief executive, says: “Speculators consider residential property to be boring. It is not a sexy story. But these days boring is beautiful. Capital preservation is imperative and high returns come second.

“Residential has become more popular as it retains its value.”

Donnelly says such thinking has prompted many risk-averse investors to bet on gold, the price of which has risen over 42% in the past year. With diversification the golden rule of asset allocation, investors are looking elsewhere too.

“Residential property is the highest performing asset class over the last 20 years returning nearly 12% in the 20 years to September 2008, closely followed by shares, which returned just over 11% over the same period,” he says.

“We still see a market that is extremely stable, especially when you look at the comparative price falls in the US & UK. Australian residential is becoming increasingly attractive for institutions seeking long-term, low-risk cash flows.”

Donnelly says his firm has been “inundated” by global funds and institutions wanting access to Australian residential property assets, which is seen as a safe port in a financial storm.

NT Govt extends Buildstart scheme

Wed, 20 May 2009 08:57:43 +1000

The Northern Territory Government has extended its housing grant scheme to the end of 2009.

The Buildstart scheme, which provides $14,000 to investors to build a new dwelling in the Territory, was launched in October 2008 to work alongside the Federal Government’s First Home Owners Grant scheme.

It has received 218 applications to date.

Melbourne vacancies still tight

Tue, 12 May 2009 12:38:01 +1000

The vacancy rate in Melbourne’s outer suburbs has increased - but the market is still tight with only 1.8% of rental homes vacant.

The Real Estate Instittue of Victoria says the vacancy rate in the outer suburbs has risen from 0.7% to 1.8% over the past six months.

But the vacancy rate across Melbourne is still low at 1.3% for April, down from 1.4% in both February and March. The outer suburbs comprise the only sector with a vacancy rate above 1.3%, according to the REIV figures.

The institute says the vacancy rate across Melbourne has been quite consistent, sitting between 1% and1.4% for the past 12 months.

March Quarter median prices showed that most of the activity in the Melbourne market has been in the outer suburbs, including Craigieburn, Melton South, Hillside, Epping, Caroline Springs, Werribee and Meadow Heights.

Approvals rise for 2nd month in a row

Tue, 05 May 2009 23:36:00 +1000

Building approvals for new homes rose 3.5% in March, continuing a rising trend of improvements in approvals for new houses and apartments.

It’s the second consecutive month to deliver a rise in building approvals, the first back-to-back monthly gains for 18 months. Close to 10,500 homes were approved in March, well above market forecasts which suggested a rise of 2.8%.

Dwelling approval levels remain about 16% below those of a year earlier. But the trend is good - it’s the first time in five years that approvals have increased 11% in two months.

Green council welcomes move to 6-star houses

Tue, 05 May 2009 09:08:02 +1000

The Council of Australian Governments’ move to minimum six-star standards for houses has been welcomed by the Green Building Council of Australia.

Chief Executive Romilly Madew says the Green Building Council has advocated changes to the Building Code of Australia for some time and the move to six-star standards is a positive step in the right direction.

“COAG’s commitment to a minimum standard of six stars will improve the environmental sustainability of Australia’s homes and reduce our national carbon emissions,” Ms Madew says.

“We also welcome the announcement of increasing the stringency of energy efficiency requirements for all classes of commercial buildings in the Building Code of Australia from 2010.

“Australia’s commercial and residential buildings are responsible for 23% of the nation’s greenhouse gas emissions. This is why energy efficiency measures in new and existing buildings are vital if we are to reduce Australia’s carbon footprint.”

BHP releases plan to expand Olympic Dam mine

Mon, 04 May 2009 11:23:12 +1000

Expansion plans for the Olympic Dam mine have been released in an Environmental Impact Statement following five years of study.

Infrastructure will include a desalination plant, a 270km electricity transmission line from Port Augusta, a 105km rail connection to the Adelaide-Darwin rail line, a new airport at Roxby Downs, a wharf at Port Augusta, expansion of Roxby Downs township and a new 10,000-person village near the mine.

The expanded mine will need 8,000 permanent workers (the current mine employs 3,000), with around 13,000 in flow-on jobs. The construction workforce will average 4,000 people over 10 years, peaking at 6,000 construction workers.

The EIS is available for public consultation until August 7. BHP Billiton hopes to have all necessary approvals in 2010 and start work soon after.

FHOG may change to offset green housing costs

Thu, 30 Apr 2009 14:23:04 +1000

The Federal Government is considering a revamp of the First Home Owners Grant scheme in the May Budget to offset the cost of a new energy-efficient building code, the Australian Financial Review reports.

It says Prime Minister Kevin Rudd wants the Council of Australian Governments to agree to a national building code which includes strong energy standards. This would require the states to ensure all new houses have a six-star energy rating by next year.

The cost is expected to be offset by measures in the upcoming Budget, including a possible option to reshape the FHOG in favour of green housing.

“The housing industry has been working with federal and state governments on how to offset the cost of new energy requirements,” the AFR reports. “The FHOG is likely to be overhauled in the May Budget.”

Fed Govt increases hardship threshold to $500,000

Mon, 27 Apr 2009 20:36:09 +1000

The Federal Government has announced a plan to allow borrowers to request changes to their loan contracts on the grounds of financial hardship, such as job loss. The measures will apply to loans up to $500,000.

Borrowers can access free legal representation from the Financial Ombudsman Service if their lender refuses to grant hardship assistance.

Currently, only those with loans under $312,000 are entitled to make the claim. Corporate Law Minister Nick Sherry says this excludes many home owners in capital cities.

Perth market rises in March quarter

Sun, 26 Apr 2009 21:14:17 +1000

The median house price in Perth has risen 2% in the March Quarter to $427,000, its first rise in over a year.

The Real Estate Institute of Western Australia says it appears the market has finally bottomed out, after several years of declining prices. Gosnells grew 3% while Wanneroo in the city’s north-west increased 3.6%.

Overall sales volumes grew 40% in the March Quarter - back to the levels of September 2006, just before the Perth market peaked and began to decline.]

Consumer confidence up 8.3%

Sun, 26 Apr 2009 21:05:45 +1000

Consumer sentiment has grown, boosted by lower interest rates, government incentives and rising sharemarkets. A survey of 1,200 people by the Westpace-Melbourne Institute recorded an 8.3% rise in consumer confidence in April.

It is the first rise in three months and is 6.0% higher than April 2008.

Westpac chief economist Bill Evans says: “This is a surprisingly strong result. Concerns about the global economy have eased as share markets have boomed. A further positive response to the fiscal stimulus package is likely to be buoying consumers.”