Beecroft Cheltenham Civic Trust

As a member of the BCCT, I received my renewal letter today from Michael Stove, President of the Beecroft Cheltenham Civic Trust who writes as follows:

"Please help us to help you present your thoughts & ideas before the various government and other respective authorities. Renew your memberships and look to your friends and neighbours to join up. We require those small individual amounts to assist us continue with our efforts on your behalf."

It's $10 per year for individual membership, $20 for family membership. Membership forms can be obtained on the BCCT website, http://www.2119.org.au/.

With so many major issues affecting our Beecroft and Cheltenham environment at the moment, I believe the BCCT needs to have very many more members than they now do in order to provide a more powerful lobby speaking on our behalf. Unfortunately the Trust's IT manager has been unwell, and the website has not been updated to reflect recent events, but I am assured this will be changing very soon.

If you want to see the importance of lobbying, see how the cycling community has captured the debate about the M2. If you Google "M2 Widening Project", BikeNorth comes up at top of page one, ahead of Government sites as well as any other community sites! As a result of their well organised, co-ordinated activity and sustained pressure, the M2 project is spending huge amounts on cycle ways, whereas no other state in Australia, or major developed country, allows cyclists on motorways.

If Beecroft and Cheltenham residents have concerns about the M2 project, or the 5-storey zoning of the Beecroft Shopping Centre, or any other issues, we should be providing a similarly co-ordinated voice representing our concerns. Join the BCCT, attend the AGM in March 2011, and let's get our trust galvanised.

M2 Widening Focus Shift

In Transurban's email about the M2 Widening Project they include this:

"It should be noted that the EA makes reference to works on ‘Kirkham Street Bridge’ which is the official name for Murray Farm Road overbridge.

"It should also be noted that the description of works included in the EA relating to Kirkham Street Bridge was based on the motorway carriageway being widened on the southern side of the M2.

"Following community consultation and feedback during public display of the Environmental assessment, a decision was taken to move the majority of these works to the northern side of the M2 in order to reduce the overall impacts of the work. These changes were explained in the Submissions and Preferred Project Report which was made public on 23 August 2010.

"These modifications were subsequently approved as part of the overall determination for the M2 Upgrade. Details about this change in design can be viewed on the web at: http://www.hillsm2upgrade.com.au/files/m2upgradesubmissionsandpreferredprojectreport.pdf (Section 4.1, pages 233 to 241)."

and later in the email:

"At present we have approval to undertake the work on Murray Farm Road overbridge in two stages, with one lane of traffic (operating on an alternate basis with traffic control in place) maintained during the work.

"The project team, however, is looking at a number of other options as a result of the carriageway works on the M2, underneath Kirkham Street Bridge, being moved from the south to the northern side of the M2. The aim of the review is to determine whether the overall impact of the works on the M2 and Kirkham Road Bridge can be further reduced in any way."

One of the problems for the general public reviewing these monster projects is that the relevant information you seek is, as here, typically on page 233 of an even larger document. No real solution to that of course, but it does make it hard for average residents to find information they seek. In this blog I will try to assist by extracting things that are specifically relevant to the Beecroft and Cheltenham community.

First Home Buyers and Seniors

The NSW Treasurer reviews the cap on First Home Owner grants annually. Reflecting house price increases across the state Eric Roozendaal has now set the cap at $835,000, up from $750,000, bringing Beecroft or Cheltenham more into the sights of first home buyers who would receive a $7000 grant.
First home buyers also get stamp duty savings of $17,990.
People over 65 buying a newly constructed home worth up to $600,000 are exempt from stamp duty. Aaron Gadiel, CEO of Urban Taskforce, suggests that this limit also should have been raised to reflect available new construction. "The abrupt cut-off at $600,000 is distorting housing supply," he says.

Transurban Responds on Kirkham Bridge Issue

I have received an excellent email from a senior manager in Transurban, and then had a long phone call with him, clarifying several issues, and offering to keep me informed of any changes. I am now authorised to publish on this blog anything I receive from Transurban. In return I have offered to post on this blog anything he wishes the local community to know.

Firstly, on the bridge - Transurban are currently authorised to impose single-lane working over the bridge while they are working on widening the spans of the bridge. They have not got approval for any full closure. However now that the project is approved and funded, detailed planning is under way, and that includes considering options that might shorten the period of disruption to locals. One option is to demolish and replace the bridge. But adopting such a disruptive option would require community consultation and a lengthy approval process. So there is no chance of the bridge being fully closed in January!

I am assured that pedestrian access through Chilworth Reserve will be maintained at all times except when specific hazardous work is taking place above. The construction park being assembled under the bridge will not close the footpath over the river.

Normal working hours will be day work except in existing approved places such as the widening of the Epping tunnel, and during work which has to be done at night such as applying asphalt to the finished road surface.

The promised (and mandated) advertising of contact numbers into the Transurban planners will appear in local newspapers this week or next week.

I am seeking clarification on some other issues, and if you need to know anything, or wish to publish your views on any aspect of the M2 widening project, feel free to contact me. Mobile 0417 215 774, or email peter.hewitt@raywhite.com.

Flood Prone Land in the Shire

The NSW Government has introduced a Flood Prone Land policy aiming to improve protection of life and property from threat of flood. Under this policy Hornsby Council has produced the Hornsby Overland Flow Study and Ray White Beecroft has been forwarding relevant letters from the Shire to landlords of affected properties. Draft Flood Planning Maps are available on the Shire website, http://www.hornsby.nsw.gov.au/.
Any contract for sale of a house listed on these maps as being Flood Prone will have that fact entered on the 149 certificate produced by the Shire.

Kirkham Bridge - the RTA Answer

I have obtained a very excellent and comprehensive response from the RTA describing their intentions. Unfortunately their response says:

This email, and any files transmitted with it, are confidential and intended for use by the addressee only.

So at this stage I can’t tell you what it says! All I will say is that the option of demolishing the bridge is being considered. If this concerns you, email the RTA yourself to enquire, at: enquiries@hillsm2upgrade.com.au

A key part of the email, which I am sure the RTA won't mind me telling everyone, is:

Once all potential options for lengthening the bridge have been reviewed and more information is available about the likely impacts associated with each option (including the required traffic management measures) this information will be shared with the community to obtain their feedback and comment prior to finalisation of the works program.

In my email I had asked for the timescale for that consultation period, but their response did not provide that information. I suggest we should now all be writing to advise the RTA, the NSW Government, and anyone else, of our concerns so these can be reflected in their review.

Project Approval for M2 Widening

This document is available on the HillsM2upgrade.com.au website. It makes no mention of any plans to disrupt road or pedestrian traffic across the Kirkham Road Bridge. One would like to think that is because there is no such plan.

The document requires extensive arrangements for public consultation, and no such arrangements seem yet to be in place. In this week's Northern District Times, the RTA advertises learner driver training, Hornsby Shire advertises a free chipping service, and City of Ryde sends us a reminder that we should be wearing a white ribbon today in support of the International Day for the Elimination of Violence against Women.

As Sherlock Holmes would have noted, "the dog didn't bark"! If none of these advertisements by the key authorities involved notifies us that our community is about to be torn in two, then presumably we can give a sigh of relief and go back to our preparations for Christmas.

RWB Web Site Clocks 10,000 Visits

Some time today or tomorrow our company website, Raywhitebeecroft.com.au, will clock up its 10,000th visit. Of these:

• 4,200 were 'absolutely unique visitors'.
• 2,600 were 'loyal visitors' who have visited the site more than 50 times.

Of the visitors from abroad:

• 57 in UK,
• 43 in USA,
• 36 in New Zealand, and same in India,
• 15 or more from China, Singapore, Hong Kong, Brazil, and Canada.

Beware of Snakes in the Garden

The Australian Veterinary Association is warning that the wet spring and rising temperatures has made for a good snake breeding season. Pet owners in particular are warned to look out for the symptoms of snake bites on their animals. Signs to watch for are seizures, vomiting, bleeding, weakness in the limbs, and inability to move.

Renting to Save Your Home

An article in the Daily Telegraph suggests people with mortgage problems should rent out a spare room or even the entire house, rather than selling up.
Experts fear that the latest round of interest rate increases could cause thousands ot offload their homes. But RateCity CEO Damian Smith urged owners to consider alternatives to repossession or selling cheaply. He suggests that moving in with friends and renting together, while you rent out your property, could be a better solution than selling in a depressed market.
Given that there is felt to be little prospect of significant capital gains in the short term, it makes sense to take advantage of the tax breaks enjoyed by investors.

Kirkham Road Bridge To Go

I can find nothing on the RTA or Transurban websites to confirm this, but apparently there have been meetings with Beecroft Cheltenham Civic Trust and others where they have stated they are "considering the option" of demolishing the road bridge over the M2 between Murray Farm Road and Beecroft Road.
At the latest meeting apparently even the police said they knew nothing about the proposal. However I am told that other options like lane closures and providing a footbridge are not favoured by the RTA or Transurban, because of course they cost money.
However RTA has always said "Community consultation will be carried out before any decision is made", so concerned residents need to be ready to respond when invited.
One positive step would be for all concerned relatives to join the BCCT to increase the influence that body would have, and also to ensure that the BCCT expresses the wishes of a significant proportion of the local population.

Transurban get Finance for M2 Widening Project

Transurban has obtained $740 Million of loans to finance the M2 Widening Project now expected to begin next month. Commonwealth Bank, NAB, and four foreign banks provided the loans,which will also fund refinancing of $465M of existing debt and $275M of new debt.

Kirkham Bridge Roadworks Plans

All the vibes I am hearing indicate that, yes, Transurban does intend to demolish the bridge, because of course that is cheaper than modifying the existing bridge! They just bring in a new prefabricated bridge and put it in place overnight. But demolition of the old bridge, and activation of the new, could take weeks or months during which Beecroft residents would be put to enormous inconvenience.

The Beecroft Cheltenham Civic Trust is active on this issue, Greg Smith has arranged for Trust officers to meet with roads Minister David Borger to try to find out the truth, and to make community concerns clear. This blog will report back as soon as we hear the result. Meanwhile any concerned locals should join the BCCT in order to strengthen their voice in these issues!

NDT on Kirkham Road Bridge Part 2

This week the Northern District Times carried the letter from Michael Stove of the Beecroft Cheltenham Civic Trust on the issue of Transurban's intentions for the road bridge over the M2 between Murray Farm Road and Beecroft Road.

The article includes statements which could imply BCCT and I have over-reacted. But the statements are so ambiguous it shows there is a very real danger that we are right to be very concerned.

One statement is, "Transurban advises the start of major work is expected to commence in late 2010 and take two years to complete. It will be at least six months before a replacement bridge is constructed." Careful reading shows this to be pretty meaningless. It could mean "no action on the bridge is intended for six months", or it could mean that the old bridge will be demolished in January and could take a year or more to be replaced. We need to know which is closest to the truth in order that we can decide what protest action, if any, is appropriate.

The Transurban spokesman then said "no final decision had been made about whether the bridge would be reduced to one lane during upgrades." Does that mean the very worst proposal is to close one lane for some of the two years? If so, I don't have any big concern about that. Their Upgrade Environmental Assessment planning document said they had to "lengthen the bridge spans", which clearly might involve some disruption to traffic on the bridge. But I have been unable to find any hint in the UAE that this would involve significant disruption over a significant time.

NDT on Kirkham Road Bridge

Just over a week ago the Northern District Times carried an article saying Transurban and the RTA confirm that one option being considered is to reduce the Kirkham road bridge over the motorway to one lane for 20 months. Now we are hearing rumours that they are proposing to demolish the bridge entirely. And they say the new bridge will not be open "for at least six months", which could easily mean a year or more.
It just seems incredible that the NSW Government could have allowed the RTA to sign a contract without such enormously consequential issues being resolved.
As the Beecroft Cheltenham Civic Trust said, "Bridge demolition will divide Beecroft." Shops and businesses in Beecroft Shopping Village will be seriously affected, and lost business may never return even when the road bridge is reopened. What about all the school kids and commuters who use the bridge every morning and evening? Yet all the RTA says is, "the impact of the proposed bridge closure on local traffic is still being assessed."
Guys, listen up, it's not just impact on traffic that needs to be assessed!
And if after community consultation the RTA is forced to adopt a more expensive solution, can we be assured that Transurban will carry that extra cost? Or is there a clause in the contract that allows Transurban to pass such increases onto the taxpayer?

Rental Situation in NSW

All this year vacancy rates have been very low. But since the latest interest rate rise, we have seen a number of landlords planning to move back into their properties because of their difficult financial situation, and the prospect of continuing interest rate rises next year.
Landlords need to remember the tax breaks available for the rented property. Above all aim never to pay off the mortgage of the investment property, go for the maximum tax rebate. Given the present high purchase price of housing, people are being forced to rent, and vacancy rates are at an all time low. As a result, rents, and hence rental income, are rising rapidly, and this trend must continue until the extreme housing shortage is addressed.

Investment Seminar Success

Over 60 people attended Ray White Beecroft's Investment Seminar last night.
Speakers were from Ray White's Development Marketing group, and from the Ray White finance subsidiary LoanMarket. They explained how an investor can use rental income and tax breaks and deductions to finance an investment property, and how to use that income stream to pay off your own mortgage. Obviously a key lesson was, don't pay off the mortgage on your investment property - your loan should be 'interest only' to get the biggest tax break, whereas you should try to pay off your home mortgage and any other non-tax-deductable debts as quickly as possible.
As LoanMarket's speaker said, the government cannot afford to provide enough state funded housing, so instead they provide tax benefits to encourage the provision of rental housing by private investors. If you take advantage of these benefits, you are not just making money but also providing a family with a home. As the speaker said, just make sure you have Landlord Protection Policy (tax deductable of course) to cover the costs of a bad tenant.
On this basis, rising interest rates are good, because interest payments are tax deductable while property prices are influenced by inflation. But as the speaker said, above all you need good advice.

M2 Upgrade Working Hours

Given the uncertainty about Transurban's position on Kirkham Road Bridge, one whether we should be concerned by the statement that "The standard work hours for the sites would be between 7.00 am to 6.00 pm, Monday to Friday, and 8.00 am to 1.00 pm on Saturdays. For construction activities proposed to be undertaken along the M2 Motorway or accessed via the M2 Motorway, work may be undertaken outside of the standard hours to reduce the overall construction period, providing that the impact on the M2 Motorway capacity does not result in increased traffic on alternate routes. Proposed works such as the Norfolk Tunnel widening would generally extend outside standard hours."

Reading that paragraph with a jaundiced eye one sees that it is carte blanche for them to work 24 hours a day seven days a week, so long as the work "is along the M2 Motorway" and "reduces the overall construction period", and of course that covers the entire project.

Kirkham Bridge - What's the true story?

I was advised by the BCCT that Transurban intends to demolish the Kirkham road bridge.
However this is in direct contravention of the M2 Upgrade Environmental Assessment issued by the NSW Roads and Traffic Authority which specifically states:
Kirkham Street/Kirkham Street Bridge "During construction there would be one of two footpaths closed for the lengthening works at the each end. Temporary road crossing may be used to facilitate access."
That is hardly consistent with their newly reported intention to demolish the bridge and spend "at least six months" rebuilding it!

PEOPLE EMPOWERMENT

The recent uncertainty around the RTA's intentions for the Kirkham Road bridge between Murray Farm Road and Beecroft Road is a classical example of the topic of a People Empowerment address to be given on Monday 22 November at 7pm at the Asquith Leagues Club opposite Waitara Railway Station (north side).
Mr Hatton believes that community submissions have been ignored. Submissions have been used only to confirm that a form of community consultation has been undertaken. Community consultation meetings and submissions have become a waste of time to address community concerns from highly adverse community impacts from these projects. Community Groups lack the resources to undertake required legal action to expose the misuse of process to create the projects.
To discover a path to deal with the REPRESENTATION CRISIS arising from these main N-W Sydney issues you are invited to attend.

KIRKHAM BRIDGE TO BE DEMOLISHED?

Transurban advises "The start of major work is expected to commence in late 2010 and is expected to take approximately two years to complete. It will be at least 6 months before a replacement bridge is constructed."

As part of the M2 Upgrade, Transurban appears to have just announced that they might demolish the bridge joining Murray Farm Road to Beecroft Road! In the project plan, they specifically stated that they were not responsible for repairing the damaged surface of that bridge, because the bridge belonged to Hornsby Shire. The implication from them not saying more is that, at that stage, they planned no work on the bridge. Obviously residents of Beecroft are now waiting to find out what actually is intended.

Short Term Lease Available in Cheltenham

Ray White Beecroft is looking for a tenant for a house in Cobran Road Cheltenham, a delightful 6 bedroom house, but it's only available until the end of February.
This is the sort of place that would suit someone who has sold one home and does not have immediate access to another home.
Contact Nicole Simmonds on 9479 8444.

CBA Strategy

An interesting article in today's SMH says that the Commonwealth Bank intends to use Wizard and Aussie Home Loans as their equivalent of Jetstar. The Commonwealth Bank acquired both those cheap lenders when they collapsed under the Global Financial Crisis. On that basis Commonwealth can "do a Qantas" and pull the costs and attractiveness of the big four banks up as high as they like, and make their profit out of their cheaper branches. Big business at its best.

Interest Rate battle "gets personal"

The SMH reports that the Treasurer Wayne Swan has phoned bank bosses directly to vent his anger over rate rises. Joe Hockey responds that the government can huff and puff all it wants but the bottom line is that the banks are treating the Australian government with the same contempt that they show the Australian people.

The Council of Small Business Organisations proposed single bank account numbers so customers can more easily shift accounts from one bank to another, in the same way the telecos were forced to allow people to retain their phone numbers when they switched suppliers.

However until banks are prohibited from charging unjustifiable mortgage exit fees, it remains impossible for a customer profitably to move a mortgage to another bank just to benefit from a slightly lower interest rate. It seems to me it's those UMEFs that need to be banned.

In July 2010 the ASIC released a consultation paper on new laws regulating mortgage early exit fees which are unconscionable or unfair. Under the National Credit Code, early exit fees which are unconscionable can be annulled or reduced by a court. Under the Australian Consumer Law, an unfair term requiring an early exit fee to be paid can be declared void. ASIC also has a number of new enforcement powers under the new consumer law provisions in the Australian Securities and Investment Commission Act 2001 (ASIC Act). But it all boils down to the fact that to take your mortgage to another bank the exit fee must be less than the benefit from the reduced interest rate. That needs exit fees far less than those "unconscionable or unfair" fees covered by present regulations. Rather, the banks should only be allowed to charge exit fees that match the actual provable cost of transfering your mortgage.

Unpopular Guttering Faces Inspection

In the Sydney Morning Herald today there is an article about substandard guttering, a topic I blogged about in July.

The article quotes a spokesperson for the Office of Fair Trading as saying high-fronted guttering was "not a big issue". However amongst the properties that Ray White Beecroft manages I have personally seen several where incorrectly installed high-fronted guttering is causing significant structural damage to the house. In one case we had to advise the owner to have a complete set of guttering replaced. I can't believe this a bizarre Beecroft-only problem, and I am sure the owners to whom I have reported these problems would consider it a very big issue!
This photo shows a typical problem installation at one of our rental properties. The high front of the guttering looks really nice.


But this type of gutter is meant to be installed with a space at the rear for overflowing water to run down the front of the house.



As you can see from underneath, there is no gap, so overflow water floods into the structure of the house.







And here you see the early symptoms of the result.



The NSW government has finally set up an 'independent review into allegations of widespread structural damage being caused to homes'.
Greens MP John Kaye says Fair Trading Minster Virginia Judge stacked the advisory committee with people with strong industry and Labour connections. One of the review members is from the NSW Housing Industry Association, which represents manufacturers of high-fronted gutters. Hopefully he will point out the correct way to install these elegant gutters and ensure the review recommends serious action against builders who don't do it correctly.

RWB Beats all for Sales in October

In October Ray White Beecroft sold properties in Beecroft and Cheltenham worth a total of well over $4M, more than twice that of any other agency.

Sam White's Response to the Interest Rate Rise

We received the following text from Ray White head office:

2nd November 2010

Today's decision underlines why a resource rent tax is necessary. It is grossly unfair that the rest of the community is paying higher interest rates because the mining sector is strong.

I was surprised by today's announcement. Many businesses and consumers are doing it tough. Live transaction data from October is showing activity in both the property and finance markets have cooled significantly, proving that the recent jawboning by the RBA is having its effect.

Penalising Australian families for mining booms whilst leaving the mining industry unaffected is plainly wrong. The two political parties claim to represent Australian families. If that is true, it's time they started acting and stop procrastinating and causing unnecessary negative impact on the interest rate an Australian pays for their mortgage.

Regards
Sam White
Executive Chairman

Our dog Binzi came into the Ray White Beecroft office to watch the cup!

Seven Sales in Seven Weeks

Where the other local agencies are having a bad time, Ray White Beecroft has done incredibly well. In October we sold five properties in the Beecroft Cheltenham area, at Norwood Ave, Cardinal Ave, Hannah St, Beecroft Rd and Grace Ave, more than any other agency.
Now of course we need more listings to keep our sales team going!
Same with rentals, after letting 13 properties in the last two months we, and our many would-be renters, are desperate for more rental properties.

Next Meeting of BOB

The next meeting of Businesses of Beecroft will be in Cafe Long Shot 08:30 am Tuesday 2 Nov.

Beecroft has run out of Rental properties!

The desperate shortage of rental stock in the Beecroft and Cheltenham area has reached what is probably an all time low. In early October only an already-low eight rental properties were listed in the papers, four of those eight being with Ray White Beecroft. We leased the last one of those four last Friday, so now have nothing left and lots of enquiries from would be renters.

Beecroft/Cheltenham Prices Rose Last Year

Last weekend Australian Property Monitors reported median price rises for Sydney suburbs over the year to 30 September. Beecroft rose 4.9%, Cheltenham rose 8.2%. Not spectacular, but well above the average for Sydney suburbs. For all of the 73 Upper North Shore suburbs, only Marsfield (13.6%) did better than Cheltenham, and only eight did better than Beecroft.

When evaluating Median Price Rises, it is important to know what building and renovating took place in the suburb during the period. For instance maybe Marsfield had a complete new development of very expensive houses come on the market and sell during the year. This would increase the median price of properties sold, but would not affect the sale expectation for any existing house there.

But with Beecroft and Cheltenham there is no very obvious factor influencing the good result other than that it is an increasingly popular area to live.

Sydney Vendors need to get wise on Prices

"Vendors need to get wise on Prices," said Jonathan Chancellor, Property Editor of the Sydney Morning Herald. "Prices are not necessarily going up, and probably will not for some time." Later in his article he says "Vendors typically now have to trim 6.3% from their asking prices to sell their homes."

Apparently average time to sell has increased to 76 days.

Auctions certainly result in quicker sales, not because the property sells at auction (it often sells before or is passed in and sells soon after) but because the aution process educates the vendor about market interest and attracts a lot of prospective buyers who like to go to auctions, also to ascertain market values.

Of the seven properties Ray White Beecroft sold in the last seven weeks, four were sold around auctions, with time to sell of 16, 37, 35, and 30 days, an average of 29.5 days!

Price Growth Stalls

The quarterly housing price report of Australian Property Monitors shows property price growth slowed markedly across all capital cities. Sydney and Melbourne were the only two cities to record any rise in median house price during the September quarter - Sydney's rise was 0.7%, Melbourne 1.2%.
Anthony Ishac writes in The SMH property magazine that the outlook is for prices to remain flat or fall slightly for the rest of the year.
It was in this context that Ray White Beecroft recorded seven house sales in seven weeks, significantly better than any other local agency.

Domestic Solar Installations Cost Blowout

There are some good posts on this issue in propertynews.beecroft, I won't repeat them here.