Thursday, March 31, 2011
Buyer confidence drops, good time to buy
An article by Jessica Darnbrough says: Home buyer confidence has dipped 1.5 per cent since September 2010, according to the Genworth Home Buyer Confidence Index. Speaking at a media briefing in Sydney yesterday, Genworth chief executive officer Ellie Comerford said the dip in confidence was the second consecutive fall since the launch of the index last year. “This fall, despite Australia’s relatively strong economic performance, was driven by the decreased confidence in the natural disaster affected regions of Queensland and Western Australia coupled with growing concern amongst Australian home buyers about the rising cost of living,” Ms Comerford said.
PM Department Battles Paper Wasps
A tenant fresh out from England complained of wasps in the garage. Our PM department investigated and identified them as Paper Wasps. If you look them up on the internet it says “They are 10-15 millimetres long, tan in colour with darker bands and some yellow on the face.” Check that against the yellow faces in this pic I took of the ones in the garage.
The internet says “They have a painful sting and will attack if their nest is disturbed”. Asking a specialist, we were advised to spray them at night when they are asleep, with mortein or any other common insect spray. The tenant was reluctant to do this, so our PM person went round and did it for them. All part of our service.
The internet says “They have a painful sting and will attack if their nest is disturbed”. Asking a specialist, we were advised to spray them at night when they are asleep, with mortein or any other common insect spray. The tenant was reluctant to do this, so our PM person went round and did it for them. All part of our service.
Wednesday, March 23, 2011
Water Usage in Rented Properties
We are now very confident that we understand how the new laws work. Leases that were in place before 31 Jan 2011 remain able to charge for water usage but will lose that right on 31 Jan 2012 if the water conservation mods have not been completed.
New leases signed after that date will only be able to start charging water usage once the mods have been done. The lease can be signed before the mods are done, and doesn't need to be modified when the mods are completed, but the tenant shouldn't be charged for water until the mods are done.
Obviously the tenant can seek a rebate for any water usage paid that were improperly charged.
New leases signed after that date will only be able to start charging water usage once the mods have been done. The lease can be signed before the mods are done, and doesn't need to be modified when the mods are completed, but the tenant shouldn't be charged for water until the mods are done.
Obviously the tenant can seek a rebate for any water usage paid that were improperly charged.
House Price Bubble Phobias
An interesting article in the SMH today by Jessica Irvine. Much useful discussion on the issue, ending with a clear assessment that "house price rises will lag income growth for the next 18 months, helping to improve affordability." Her last paragraph says "that's the slowly deflating hiss of an overpumped air mattress you can hear, not a bubble bursting."
Monday, March 21, 2011
Chilworth Reserve Pedestrian Access
Transurban have fenced off the construction site under the M2 viaducts in Chilworth Reserve and have posted this sign.
Friday, March 18, 2011
House Sales Recovering?
There was a staggering fall in the value of houses sold in the Beecroft and Cheltenham area, by all agents, over the months since the hype about interest rate rises in November 2010. However the last month or two have seen a recovery, with the latest figures showing sales value increasing. Still below where it was two years ago, but definitely edging back up.
Another Wayve Vaughan underquote?
I found an article in Northern District Times 24 Feb telling of another Wayne Vaughan "triumph", selling a stately Federation home at 17 Railway Avenue Eastwood on 1789sqm for $2,150,000. According to the article, 150 people went through the home open.
But the property was advertised earlier with a guide price of $1,800,000, so again the sale price was 19% over the guide price. What's going on, Wayne? Don't you know the local market? Or are you deliberately deceiving your buyers?
But the property was advertised earlier with a guide price of $1,800,000, so again the sale price was 19% over the guide price. What's going on, Wayne? Don't you know the local market? Or are you deliberately deceiving your buyers?
Thursday, March 17, 2011
Allerton Road Auction by McGrath
An article on Page 2 of the Northern District Times on 9 March describes the recent auction of 14 Allerton Road by McGrath agent Wayne Vaughan, with 69 bids from just below Wayne's advertised guide price to a final selling price that was 25 % above his guide price.
On a hot rising market, it can be difficult to forecast how an auction will end up, but in today's depressed market that's not a valid excuse. In this case the final sale price was not significantly better than the generally expected price for the property, but anybody who knew the market knew the guide price was ridiculously low.
This spurred me to do a bit of research on Wayne, and McGrath in general.
I found many remarks on the web like, "From what I can see McGrath in Sydney constantly under advertise the values of properties", and "Currently I just don't bother looking if they are listed with McGrath as I've no idea what the true value is".
With so much unhappiness amongst would-be buyers, one hopes the OFT will be doing something about it! Underquoting is defined by laws regulated by the NSW Office of Fair Trading as when "an agent or employee is considered to falsely understate the estimated selling price of residential property ... less than his or her true estimate of that selling price".
The basic rule is that agents must act fairly and reasonably in their dealings with buyers and sellers and the price guide should be consistent with the estimated price in the agreement signed by the agent and vendor.
Under NSW rules, the maximum penalty for deliberately misleading buyers is $22,000. Under new laws the Federal Government is considering putting into effect from January 1, the maximum fine would be $1.1 million for agents and $220,000 for vendors.
We understand that complaints have been made to the Office of Fair Trading and look forward to hearing the results.
On a hot rising market, it can be difficult to forecast how an auction will end up, but in today's depressed market that's not a valid excuse. In this case the final sale price was not significantly better than the generally expected price for the property, but anybody who knew the market knew the guide price was ridiculously low.
This spurred me to do a bit of research on Wayne, and McGrath in general.
I found many remarks on the web like, "From what I can see McGrath in Sydney constantly under advertise the values of properties", and "Currently I just don't bother looking if they are listed with McGrath as I've no idea what the true value is".
With so much unhappiness amongst would-be buyers, one hopes the OFT will be doing something about it! Underquoting is defined by laws regulated by the NSW Office of Fair Trading as when "an agent or employee is considered to falsely understate the estimated selling price of residential property ... less than his or her true estimate of that selling price".
The basic rule is that agents must act fairly and reasonably in their dealings with buyers and sellers and the price guide should be consistent with the estimated price in the agreement signed by the agent and vendor.
Under NSW rules, the maximum penalty for deliberately misleading buyers is $22,000. Under new laws the Federal Government is considering putting into effect from January 1, the maximum fine would be $1.1 million for agents and $220,000 for vendors.
We understand that complaints have been made to the Office of Fair Trading and look forward to hearing the results.
Tuesday, March 15, 2011
Kirkham Bridge Span Widening
In earlier blogs I questioned why it was going to take as long to widen the spans as it was to widen the whole motorway, and why buses and trucks may not be allowed to use the bridge after April of next year until the work is finished.
That was explained very nicely by Peter Colacino of Transurban and a member of his team at the BCCT AGM the other day.
The problem is they have to build a new buttress to support the bridge, in between the two new roadways. They can only do that when the new east-going roadway is built. Meanwhile they have to dig out the bridge on that side before they can build that wider east-going roadway under it, and there will be a time when the eastern span is wider than the original designers intended, supported only by the existing buttress. Transurban engineers will decide before then what weight the wider span can carry and decide what weight limit to apply.
When the wider east-going lane is built, the new buttress can be built to support it, and the existing buttress can then be removed to allow the west-going lanes to be finished. Normal weight limits will hopefully then be restored.
A very complex planning process! Every step is interlinked with steps before and after. Thanks for the explanation, Peter.
(This post was prompted by a question in an email from Elise of MSB)
That was explained very nicely by Peter Colacino of Transurban and a member of his team at the BCCT AGM the other day.
The problem is they have to build a new buttress to support the bridge, in between the two new roadways. They can only do that when the new east-going roadway is built. Meanwhile they have to dig out the bridge on that side before they can build that wider east-going roadway under it, and there will be a time when the eastern span is wider than the original designers intended, supported only by the existing buttress. Transurban engineers will decide before then what weight the wider span can carry and decide what weight limit to apply.
When the wider east-going lane is built, the new buttress can be built to support it, and the existing buttress can then be removed to allow the west-going lanes to be finished. Normal weight limits will hopefully then be restored.
A very complex planning process! Every step is interlinked with steps before and after. Thanks for the explanation, Peter.
(This post was prompted by a question in an email from Elise of MSB)
Alternative Uses for a Swimming Pool
Two years ago a South Turramurra couple turned their saltwater pool into a pond, with aquatic plants and native fish. In the past three years Ku-ring-gai Council’s 'Pool to Pond' program has helped convert more than 40 pools into ponds.
Perhaps a more innovative solution can be seen at 14 Mason Avenue Cheltenham, a property going to auction this weekend. They built a concrete 'roof' over the pool and tiled it, to make a very attractive large garden entertainment and play area. But they also connected it to take rain water from the downpipes, to create an automatic watering system with 40,000 litre capacity to water the large gardens on the property! Beats having large tin tanks around the place!
Perhaps a more innovative solution can be seen at 14 Mason Avenue Cheltenham, a property going to auction this weekend. They built a concrete 'roof' over the pool and tiled it, to make a very attractive large garden entertainment and play area. But they also connected it to take rain water from the downpipes, to create an automatic watering system with 40,000 litre capacity to water the large gardens on the property! Beats having large tin tanks around the place!
Monday, March 14, 2011
O'Farrell will dump Home Buyer's Tax
In July last year the Labor government slipped in a new "Ad-Valorem" tax on home buyers, as an un-heralded part of the state budget. The tax adds typically $1,000 to houses in our area and a lot of people don't even know about it until the bill comes in.
Now State Opposition Leader Barry O'Farrell has promised to scrap what he calls Labor's "sneaky" home buyers' tax. He predicts this will make an "almost immediate impact" on lowering house prices.
Property Council NSW executive director Glenn Byers said abolishing the tax will improve investors' perception of Sydney
Now State Opposition Leader Barry O'Farrell has promised to scrap what he calls Labor's "sneaky" home buyers' tax. He predicts this will make an "almost immediate impact" on lowering house prices.
Property Council NSW executive director Glenn Byers said abolishing the tax will improve investors' perception of Sydney
Friday, March 11, 2011
Guide Price Before Auctions
McGrath have been fined in the past for quoting low "guide prices" before auctions.
This week's Northern District Times reports on an auction sale by McGrath of a property in Beecroft. There were 69 bids at the auction, rising from just below the guide price ($900,000) to 25% above it ($1,117,000)! Sounds impressive, except that the final price was almost exactly the same as the price ($1,116,000) at which an identical property next door had sold a year earlier. So this achieved auction sale price was if anything below market price.
To anyone who knew the local market, the guide price was cleary unrealistic , but the agent was relying on buyers not having that intimate knowledge. Many of those buyers would have paid for building surveys, and realised that was money down the tube once the bidding started.
All those disappointed would-be buyers should register objections with the Office of Fair Trading, and claim back the costs of any building surveys from the selling agent!
This week's Northern District Times reports on an auction sale by McGrath of a property in Beecroft. There were 69 bids at the auction, rising from just below the guide price ($900,000) to 25% above it ($1,117,000)! Sounds impressive, except that the final price was almost exactly the same as the price ($1,116,000) at which an identical property next door had sold a year earlier. So this achieved auction sale price was if anything below market price.
To anyone who knew the local market, the guide price was cleary unrealistic , but the agent was relying on buyers not having that intimate knowledge. Many of those buyers would have paid for building surveys, and realised that was money down the tube once the bidding started.
All those disappointed would-be buyers should register objections with the Office of Fair Trading, and claim back the costs of any building surveys from the selling agent!
Wednesday, March 2, 2011
"Buyers Desert The Market"
Article in the Australian yesterday was headed "house prices slump as buyers desert the market." Certainly sales have been depressed since the November rate rise and all the associated media hype. In our area, total sales by value, including all agents practicing in the area, over the Christmas period have been the lowest since we started tracking them.
However in the last five weeks Ray White Beecroft has been selling better than one property a week. There are buyers out there, but they are definitely more cautious and vendors need to be realistic. The article in the Australian should be required reading for vendors!
However in the last five weeks Ray White Beecroft has been selling better than one property a week. There are buyers out there, but they are definitely more cautious and vendors need to be realistic. The article in the Australian should be required reading for vendors!
Sale By Tender - Great Result
On 15 Feb I posted about the reasons for offering a property for sale by tender. Well, it worked. After negotiations, a deposit has been paid and accepted. Although the process lacks the excitement of the Fall of the Hammer, the Sale by Tender process works well if any serious buyers have reasons why they can't bid at auction, like needing to offer a delayed settlement. Another great result by Douglas Macarthur.
Tuesday, March 1, 2011
Water Usage in Rented Properties
We have been trying to clarify the issue of new leases charging for water usage.
The sound track of the OFT video says, for new leases, "Landlords will need to install water efficiency measures in their rented premises before starting a new lease if they want to charge their tenants for water usage."
For existing, pre-31 Jan 2011 leases, the owner is allowed a year to implement those measures. But it seems there is no such flexibility for leases signed since then. The wording implies that there is no way of subsequently implementing the measures and bringing in charges for water usage. So if the owner can't get the work done before the tenant signs the lease, there will be no reason to improve the property later. Is that what the conservation people want?
The sound track of the OFT video says, for new leases, "Landlords will need to install water efficiency measures in their rented premises before starting a new lease if they want to charge their tenants for water usage."
For existing, pre-31 Jan 2011 leases, the owner is allowed a year to implement those measures. But it seems there is no such flexibility for leases signed since then. The wording implies that there is no way of subsequently implementing the measures and bringing in charges for water usage. So if the owner can't get the work done before the tenant signs the lease, there will be no reason to improve the property later. Is that what the conservation people want?
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