According to the Australian, another investment bank has tipped the Reserve Bank will cut interest rates next month. JPMorgan today forecast the central bank will lower rates due to the "material" deterioration in financial markets since the last board meeting.
JPMorgan, which had expected the RBA to hold rates steady next month, today said the debt turmoil in Europe, tight fiscal policy from Australia's government and a strong Australian dollar have changed its mind. The bank's economists expect the RBA to cut rates by 25 basis points to 4.25 per cent next month, inline with forecasts by Goldman Sachs and UBS.The US investment bank also said it expects two more 25 basis point rate cuts in the first quarter of calendar 2012.
Wednesday, November 30, 2011
Three Auctions in One Day
On 10 December, Ray White Beecroft is auctioning 16 Hawkridge Place Dural at 11am, then 56 Boronia Avenue Cheltenham at 1pm, and 68 Cheltenham Rd Cheltenham at 2pm.
Tuesday, November 22, 2011
Further Interest Rate Cuts in the Wings?
On the back of fresh news that Italy has now become the weakest link in the Eurozone debt crisis, stockmarkets around the world were pummelled again last week as about $30 billion was wiped off the value of Australian companies.
Although bad news for many equity investors, it’s good news for the property market with an increased probability that rates will again be cut. This could be as early as next month when the Reserve Bank (RBA) is next due to meet.
The latest Westpac-Melbourne Institute consumer confidence survey conducted after the RBA’s rate cut last week recorded a bounce of 6%, the first time the index has been positive since June. ICAP economist Adam Carr told the Sydney Morning Herald that while home lending is not booming, the fact that it is recovering at a rapid pace despite global turmoil is testament to how resilient the market is.
Although bad news for many equity investors, it’s good news for the property market with an increased probability that rates will again be cut. This could be as early as next month when the Reserve Bank (RBA) is next due to meet.
The latest Westpac-Melbourne Institute consumer confidence survey conducted after the RBA’s rate cut last week recorded a bounce of 6%, the first time the index has been positive since June. ICAP economist Adam Carr told the Sydney Morning Herald that while home lending is not booming, the fact that it is recovering at a rapid pace despite global turmoil is testament to how resilient the market is.
Thursday, November 17, 2011
Record Empty Rooms in Australian Homes
A survey by the Bureau of Statistics finds there are more empty bedrooms in Australian houses than ever before. Average number of bedrooms per house has gone up from 2.8 to 3.2 over the last fifteen years, while average people per house has gone down from 2.7 to 2.5.
The number of people living in private houses has risen by 23 percent, while the number of houses has risen 28 percent.
The Hornsby Shire Housing Strategy will require the units to be built over the Beecroft Shopping Centre to be a mix of 1, 2 and 3 bedroom units, with not less than 10% of each type.
The number of people living in private houses has risen by 23 percent, while the number of houses has risen 28 percent.
The Hornsby Shire Housing Strategy will require the units to be built over the Beecroft Shopping Centre to be a mix of 1, 2 and 3 bedroom units, with not less than 10% of each type.
Wednesday, November 16, 2011
Solar Panels on Rental Properties
Ray White Beecroft has some information about recovery of electricity costs when a landlord installs a solar panel system, typically costing $30K, on a property to take advantage of NSW government rebates, and then decides to rent it out. Contact Peter Hewitt the Business Development Manager with any queries. Email peter.hewitt@raywhite.com.
Monday, October 24, 2011
Law Change could spark Sales Slump
Anthony Lawes of the Sydney Morning Herald reports that buyers of new appartments could face higher levies and a drop in propery values as a result of NSW changes to the period in which developers have to provide cover for shoddy work.
Previously builders had a statutory warranty period of seven years. The new law changes this, for non-structural defects, to just two years. For structural problems the warranty period reduces to six years. Non-structural defects include painting, acoustics, wiring, lighting, fire hazards etc.
Worst of all, the clock for the warranty starts when the building is finished, not when the new owners move in!
Under the changes, the cost of repairs would shift onto the new owners, as most non-structural defects take several years to surface.
The NSW government justifies the change as a way to re-energise the home building sector, but the chairman of the Owners Corporation Network fears it will have the opposite effect. "The message from this change is, don't buy new and don't buy off the plan because whatever you buy won't have adequate warranty."
Part of the problem apparently is that no home warranty insurance is available for owners in blocks higher than three storeys, so there is no way for the buyer to defray those costs.
This puts an interesting slant on the Hornsby Shire's Housing Strategy, with three or more layers of residential units being built above two levels of mixed commercial and retail. The 'higher than three storeys' rule means that only the lowest level of those new residential units would be covered. Suddenly the penthouse suites don't sound so attractive!
Previously builders had a statutory warranty period of seven years. The new law changes this, for non-structural defects, to just two years. For structural problems the warranty period reduces to six years. Non-structural defects include painting, acoustics, wiring, lighting, fire hazards etc.
Worst of all, the clock for the warranty starts when the building is finished, not when the new owners move in!
Under the changes, the cost of repairs would shift onto the new owners, as most non-structural defects take several years to surface.
The NSW government justifies the change as a way to re-energise the home building sector, but the chairman of the Owners Corporation Network fears it will have the opposite effect. "The message from this change is, don't buy new and don't buy off the plan because whatever you buy won't have adequate warranty."
Part of the problem apparently is that no home warranty insurance is available for owners in blocks higher than three storeys, so there is no way for the buyer to defray those costs.
This puts an interesting slant on the Hornsby Shire's Housing Strategy, with three or more layers of residential units being built above two levels of mixed commercial and retail. The 'higher than three storeys' rule means that only the lowest level of those new residential units would be covered. Suddenly the penthouse suites don't sound so attractive!
Thursday, September 8, 2011
Hornsby Shire Housing Strategy
Apparently the NSW Liberal Planning Minister gazetted the previous (Labor) state government's Housing Strategy on Friday 2 September. There seems to have been no public consultation on this issue since the new Liberal party took over at the election.
Tuesday, September 6, 2011
Construction Costs per sq m, Sydney
An interesting table is published in Maverick, a bulletin by BMT & Associates. For instance a 4 bedroom full brick home on a level block single level unique design is quoted as between $1,640 and $2,010 per sqm excluding GST. More details can be obtained at their website, http://www.bmtqs.com.au/.
Auction Bidder whose cheque Bounced
A report in the Sydney Morning Herald, by Stephen Nicholls, tells how a buyer who bid $2.3M for a house, and paid the required 10% deposit by cheque, was successfully sued by the vendor. By then the vendor had sold the property to another buyer for $1.95, and the Supreme Court ruled that the failed buyer must pay the difference, $350,000, plus interest.
The failed buyer's solicitor claimed his client had no money, but it turned out she owns several properties, although with significant liabilities.
So the key lesson is, if you can't raise the money in time for settlement, don't bid at auction! If your wealth is in property, then the disappointed vendor will pursue you confident that in time he will get his money.
The failed buyer's solicitor claimed his client had no money, but it turned out she owns several properties, although with significant liabilities.
So the key lesson is, if you can't raise the money in time for settlement, don't bid at auction! If your wealth is in property, then the disappointed vendor will pursue you confident that in time he will get his money.
Wednesday, August 31, 2011
Offshore Investors Seek Safe Haven
According to Carolyn Cummins in SMH Business Day, Australian real estate has been in hot demand in the past few months as global volatility has led to an investor push to secure property in safe havens.
More than $9 billion of assets have changed hands across the Asia Pacific region in the last three months, mostly in real estate investment trusts.
Ray White Beecroft recently sold Shop 26 in the Arcade, the second commercial property we have sold recently, but both bought by Australian buyers.
More than $9 billion of assets have changed hands across the Asia Pacific region in the last three months, mostly in real estate investment trusts.
Ray White Beecroft recently sold Shop 26 in the Arcade, the second commercial property we have sold recently, but both bought by Australian buyers.
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