Mortgage repayments on the rise


Mortgage repayments on the rise

Posted on Tuesday, November 19 2013 at 3:21 PM

Median monthly mortgage repayments in Australia climbed by 38.5 per cent in the period between 2006 and 2011, from $1300 to $1800.

But in a surprise trend, data released by the Australian
Bureau of Statistics (ABS) today shows that the fastest growing mortgage costs
were seen in areas outside major capital cities.

Between 2006 and 2011, mortgage costs increased more than
wages. The median weekly household income grew by 20.2 per cent in that period,
compared to an increase of 38.5 per cent in mortgage repayments.

The Sydney suburb of Woollahra has the most expensive median
monthly mortgage repayments at $3250.

The fastest increase was recorded in
Ashburton in Western Australia, where median monthly repayments increased by a staggering
278.6 per cent.

ABS director of rural and regional statistics, Lisa Conolly,
says analysing growth in regional areas is complex due to a range of factors
influencing mortgage costs.

“Regions such as Ashburton
and Port Hedland in WA have experienced high population growth and turnover,
meaning there would be increased demand for housing and possibly new homeowners
with new mortgages,” Conolly says.

FASTEST GROWING
MORTGAGE INCREASES WITHIN EACH STATE/TERRITORY (a) 

Source: Australian Bureau of Statistics

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    Real estate reforms tabled in Queensland Parliament


    Real estate reforms tabled in Queensland Parliament

    Posted on Thursday, November 21 2013 at 3:24 PM

    Legislative changes tabled in the Queensland Parliament will make commissions less transparent to buyers and extend sole agency timeframes, according to the Real Estate Institute of Queensland (REIQ).

    The
    lobby group believes the amendments will simplify the process of buying and
    selling property across the state.

    Changes
    to the rules governing the real estate industry include:

    • Removing the requirement for agents to disclose to
      a buyer the commission they’re receiving from the seller.
    • Extending the statutory limit on lengths of sole or
      exclusive agency appointments from 60 days to 90 days.
    • Removing a limit on the maximum commissions payable.
    • Abolition of a separate warning statement by
      incorporating it into the contract itself.
    • Stricter disclosure of third party benefits to
      buyers.

    Pamela Bennett, chairman of the REIQ, says the introduction of the Property Occupations Bill and the Agents Financial Administration Bill into Parliament
    is the result of more than 12 months of collaboration between the State
    Government and the real estate sector.

    “The real estate industry has long been legislatively bundled in with a
    variety of other occupations and the REIQ always felt that our profession
    deserved its own specific legislation.”

    Bennett says the organisation is happy to see agents regulated under
    legislation separated from other professions.

    “For more than a year, the REIQ has fought for major legal reforms
    during the review of the Property
    Agents and Motor Dealers Act
    and the splitting of (it) into
    occupation-specific legislation.”

    Anton Kardash, the REIQ’s chief executive officer, believes the legislative
    reforms will improve conditions for both agents and consumers.

    “The majority of the changes also allow for the real estate industry to
    become more professional and ultimately more accountable, and that is good news
    for everyone as well as for the property market.”

    Attorney-General Jarrod Bleijie says the overhaul of the legislation will
    cut red tape.

    “Lengthy contracts can often do more harm than good, with many people
    either skimming over important information, or in some cases people are not reading
    the finer detail at all,” Bleijie says.

    “Buying a house or car is one of the biggest decisions we can make in
    our life time and the simpler we can make the process, the greater
    Queenslanders are protected.

    “By reducing the number of approved government forms and incorporating
    warning statements into contracts, we can achieve this.”

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      Two major mine projects approved


      Two major mine projects approved

      Posted on Monday, December 23 2013 at 4:49 PM

      The Federal Government has granted approval to a new major coalmine owned by mining billionaire Clive Palmer.

      The China
      First mine operation, located in Queensland’s Galilee Basin, will have the
      capacity to produce up to 40 million tonnes of coal each year.

      While
      Palmer’s company will have to comply with 49 special conditions, environmental
      groups claim it doesn’t go far enough to limit the impact on the Bimblebox
      protected area.

      Greens
      environment spokesperson Senator Larissa Waters claims the mammoth mine will
      worsen climate change, harm the Great Barrier Reef and encroach on the habitats
      of native wildlife.

      “The condition attached to offset Bimblebox with another area is
      ridiculous – you can’t offset the loss of the last remaining significant
      woodland in the Galilee Basin,” she says.

      The government also last week approved Arrow Energy’s the Surat Gas
      Expansion project, which includes 6500 new coal seam gas wells, to the west of
      Brisbane.

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        Housing types determine insurance options


        Housing types determine insurance options

        Posted on Tuesday, December 24 2013 at 10:54 AM

        One of Australia’s peak insurance bodies has called on landlords to ensure they have the appropriate cover for their investment property.

        Terri Scheer Insurance executive Carolyn Majda says it’s vital for landlords to understand the various insurance options available and what’s covered depending on whether they own a unit, home or townhouse.

        “In a strata-titled apartment situation, strata insurance is held by the body corporate and paid for by owners’ levies,” she says.

        “The body corporate is legally responsible for insuring the buildings at the strata-title site, as well as the owner’s legal liability for common property areas.”

        However, Majda warns that strata insurance usually doesn’t include the interior of individual units, which means if a tenant injures themselves inside a rented apartment the landlord may be found liable.

        “Landlord insurance can help to protect investors from the specific risks associated with owning a rental property, including malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,” she says.

        “Generally speaking, the cost to insure a unit is lower than a house, so it’s important to consider these features and the impact they could have on premiums when looking to buy an investment property.”

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        First homebuyers still slow to act


        First homebuyers still slow to act

        Posted on Monday, December 02 2013 at 3:03 PM

        The proportion of first homebuyers entering the property market remains flat, with the country’s largest mortgage brokerage recording continued declines.

        Of all the home loans processed across
        Australia by Australian Finance Group (AFG) in the month of November, just 10.3
        per cent were for first-time buyers.

        That result is in stark contrast to
        investor numbers, which the company reports rose again last month to 39.9 per
        cent of all loans.

        All up, AFG processed $3.99 billion worth
        of loans in November. The average mortgage was for $436,000, which represents
        an increase of eight per cent since May.

        “The increase in average home loans may be
        as much a consequence of greater participation by investors and borrowers
        seeking to upgrade their homes, than of rising house prices,” the company says.

        First homebuyer participation varied state
        to state, with AFG recording its worst ever figure for New South Wales of 2.8
        per cent.

        Elsewhere, first-timers comprised 6.2 per
        cent of all processed loans in Queensland, 11.4 per cent in Victoria, 16 per
        cent in South Australia and 20.2 per cent in Western Australia.

        Mark Hewitt, general manager of sales and
        operations for AFG, says the overall mortgage market is robust and in “good
        health”.

        “It’s encouraging to see more people
        willing to upgrade their homes and buy investment properties.”

        Urgent action is needed to address the
        absence of first homebuyers, he says, particularly in NSW and Queensland.

        “We need to see a lot more people get on the
        property ladder to underpin the long-term sustainability of those markets.”

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          Abbot Point approval a win for local property market

          Abbot Point approval a win for local property market

          Posted on Wednesday, December 11 2013 at 3:18 PM

          The approval of the Abbot Point coal terminal at Bowen is expected to have a significant impact on both property and businesses in the local area, with real estate agents saying the market has suffered as a result of the uncertainty around the port.

          Environment Minister Greg Hunt yesterday approved the expansion of the
          terminal, which is expected to be one of the largest in the world.

          Despite backlash from conservationists and green groups, real estate
          agents in the Bowen township see the development as a boon to the local economy
          and a milestone that will reduce the risk around the property market.

          Bowen LJ Hooker principal Tony Doyle says the announcement removes the
          uncertainty for investors.

          “I do believe it might take another few months to settle down before
          people start making investment decisions, but there’s now a good long-term
          future in Bowen,” he says.

          “They’ll be building here for years now. That will be good for the town.
          It’s certainly good news for everybody. It’s just been so frustrating in the
          lead up to this.

          “I believe it will definitely put confidence back in the market. We’ve
          got a lot of clients who have said ‘oh if it happens I’ll probably come and buy
          something, but the way it is now, why would I? It’s too much of a risk’.”

          Doyle says a very high vacancy rate currently exists in Bowen, which
          will be difficult to overcome and is a result of hype around the anticipated
          expansion over the past 12 months.

          “This announcement may see some investors come back to the market but
          the last 12 months has probably been the hardest 12 months in real estate that
          I’ve been in for 30 years,” he says.

          “I think this project has been talked about for such a long time and
          we’ve all been to more industry forums than I’ve had hot breakfasts and it’s
          now the end of 2013, but this was all supposed to happen in 2012.

          “We still don’t have people out there swinging hammers, this is just an
          approval. So what’s happened is all the marketing companies got on the band
          wagon for the last two years and went crazy and put out some fairly outrageous
          investment seminars around the country and we ended up with what we have today
          – a vacancy rate that’s probably the highest on the east coast of Australia.

          “We’ve got 270 vacant properties in Bowen today and that will be 300 by
          February, which would equate to about 25 per cent. So there’s no joy there for
          investors. It’s been a hard slog. This is as bad as it gets.

          “My take is that it will be a very slow and gradual change. They aren’t
          going to build the biggest coal port in the world in 12 months.

          “If they brought 500 men to town, that would only fill up the vacancy.
          We’ve got that much vacant property and also we have a construction camp.
          Nothing much is going to change here for the next 12 months.

          “There are a lot of people coming and going all the time, so they aren’t
          going to take 12-month leases on houses.”

          Doyle says the previous expansion at the port saw an influx of about 700
          people with little impact on housing.

          “There has already been an expansion of the port and we’ve been through
          this once before with 600 or 700 men in town, of which we only rented about 40
          or 50 houses.”

          According to Doyle, the real estate industry has been given an
          undertaking by industry that they won’t be buying up land or building any
          additional houses for employees.

          “We’ve already had an undertaking from the companies that they won’t
          come to town and buy subdivisions and build houses. They’ve told us that in no
          uncertain terms.

          “At the peak of this construction there could be 2000 people here, but when the construction is finished it’s about 20 so they
          don’t’ want to create an artificial market for one or two years and then
          disappear.”

          Doyle says locally there’s only a minority of people in the township who
          are against the expansion.

          “There’s a very small minority who aren’t happy about it. On a ratio of
          100 I’d say there are about 99 who are in favour of it.

          “These workers do get time off and they spend it in the town, so they’re
          great for the town and the local businesses.”

          Bowen Chamber of Commerce chairman Bruce Heddich has told
          the ABC he’s thrilled about the announcement.

          “Bowen, being adjacent to Abbot Point, is the real winner
          in this decision. It can only go well for the future of the town,” he says.

          Article source: http://feedproxy.google.com/~r/API_Property_News/~3/9s-akjtXlDE/abbot-point-approval-a-win-for-local-property-market


          Abbot Point approval a win for local property market

          Abbot Point approval a win for local property market

          Posted on Wednesday, December 11 2013 at 3:18 PM

          The approval of the Abbot Point coal terminal at Bowen is expected to have a significant impact on both property and businesses in the local area, with real estate agents saying the market has suffered as a result of the uncertainty around the port.

          Environment Minister Greg Hunt yesterday approved the expansion of the
          terminal, which is expected to be one of the largest in the world.

          Despite backlash from conservationists and green groups, real estate
          agents in the Bowen township see the development as a boon to the local economy
          and a milestone that will reduce the risk around the property market.

          Bowen LJ Hooker principal Tony Doyle says the announcement removes the
          uncertainty for investors.

          “I do believe it might take another few months to settle down before
          people start making investment decisions, but there’s now a good long-term
          future in Bowen,” he says.

          “They’ll be building here for years now. That will be good for the town.
          It’s certainly good news for everybody. It’s just been so frustrating in the
          lead up to this.

          “I believe it will definitely put confidence back in the market. We’ve
          got a lot of clients who have said ‘oh if it happens I’ll probably come and buy
          something, but the way it is now, why would I? It’s too much of a risk’.”

          Doyle says a very high vacancy rate currently exists in Bowen, which
          will be difficult to overcome and is a result of hype around the anticipated
          expansion over the past 12 months.

          “This announcement may see some investors come back to the market but
          the last 12 months has probably been the hardest 12 months in real estate that
          I’ve been in for 30 years,” he says.

          “I think this project has been talked about for such a long time and
          we’ve all been to more industry forums than I’ve had hot breakfasts and it’s
          now the end of 2013, but this was all supposed to happen in 2012.

          “We still don’t have people out there swinging hammers, this is just an
          approval. So what’s happened is all the marketing companies got on the band
          wagon for the last two years and went crazy and put out some fairly outrageous
          investment seminars around the country and we ended up with what we have today
          – a vacancy rate that’s probably the highest on the east coast of Australia.

          “We’ve got 270 vacant properties in Bowen today and that will be 300 by
          February, which would equate to about 25 per cent. So there’s no joy there for
          investors. It’s been a hard slog. This is as bad as it gets.

          “My take is that it will be a very slow and gradual change. They aren’t
          going to build the biggest coal port in the world in 12 months.

          “If they brought 500 men to town, that would only fill up the vacancy.
          We’ve got that much vacant property and also we have a construction camp.
          Nothing much is going to change here for the next 12 months.

          “There are a lot of people coming and going all the time, so they aren’t
          going to take 12-month leases on houses.”

          Doyle says the previous expansion at the port saw an influx of about 700
          people with little impact on housing.

          “There has already been an expansion of the port and we’ve been through
          this once before with 600 or 700 men in town, of which we only rented about 40
          or 50 houses.”

          According to Doyle, the real estate industry has been given an
          undertaking by industry that they won’t be buying up land or building any
          additional houses for employees.

          “We’ve already had an undertaking from the companies that they won’t
          come to town and buy subdivisions and build houses. They’ve told us that in no
          uncertain terms.

          “At the peak of this construction there could be 2000 people here, but when the construction is finished it’s about 20 so they
          don’t’ want to create an artificial market for one or two years and then
          disappear.”

          Doyle says locally there’s only a minority of people in the township who
          are against the expansion.

          “There’s a very small minority who aren’t happy about it. On a ratio of
          100 I’d say there are about 99 who are in favour of it.

          “These workers do get time off and they spend it in the town, so they’re
          great for the town and the local businesses.”

          Bowen Chamber of Commerce chairman Bruce Heddich has told
          the ABC he’s thrilled about the announcement.

          “Bowen, being adjacent to Abbot Point, is the real winner
          in this decision. It can only go well for the future of the town,” he says.

          Article source: http://feedproxy.google.com/~r/API_Property_News/~3/9s-akjtXlDE/abbot-point-approval-a-win-for-local-property-market


          Where to buy in the hot Sydney market

          Where to buy in the hot Sydney market

          Posted on Wednesday, December 18 2013 at 11:25 AM

          Sydney’s property market had a stellar year and shows no immediate signs of slowing down, but new analysis shows some suburbs are flying under the radar.
          According to research by Onthehouse’s property research arm Resdiex, some suburbs haven’t yet taken off and could offer potential investment opportunities.
          The growth in the top performing Sydney suburbs over the past 12 months was significant, with property owners in Northbridge increasing their net worth by more than $300,000 on average.

          John Edwards, consulting analyst for Onthehouse and founder
          of Residex, says strong performing suburbs are often ones that have already
          experienced the majority of their growth for the current cycle.

          “On the other hand, the poor performers are probably yet to
          see significant growth during this cycle and may offer investors very good
          growth prospects and homebuyers an opportunity to purchase well from despondent
          vendors,” Edwards says.

          “For example, the data suggests that North Parramatta has probably seen the
          majority of its growth, whereas suburbs like Green Valley and Camden South are
          yet to see their period of strong growth.

          “Recent auction activity and the numbers point to a market where the upper
          end is beginning to slow and the lower cost areas are currently the most sought
          after. Based on the data, it would appear that lower cost suburbs will see the
          strongest growth in the next 12 months.”

          His analysis has identified the worst performing capital
          growth suburbs in Sydney for both houses and units.

          Slow growth movers –
          houses 

          Slow growth movers –
          units


          When it comes to the top performers for 2013, house and
          landowners have done better in all respects compared to unit owners.

          Capital growth top
          performers – houses

          Capital growth top
          performers – units

          Knowing where a suburb is in its growth cycle is key to identifying the
          opportunity within that area, Edwards says.

          “If you combine the knowledge about a suburb’s growth cycle along with
          research data, suburb information and if you find out what the public considers
          the best streets are, then good buying decisions should result.”

           


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          Finding a rental in Sydney getting tougher


          Finding a rental in Sydney getting tougher

          Posted on Monday, December 16 2013 at 1:11 PM

          Rental vacancy rates across Sydney tightened even further in the month of November, falling to their lowest levels in nearly two years.

          According to data released by the Real Estate Institute of
          New South Wales (REINSW), the availability of residential rental accommodation
          in the state’s capital declined 0.1 per cent last month.

          The final half of 2013 saw Sydney rates steadily declining,
          REINSW president Malcolm Gunning says, creating an increasingly difficult situation
          for tenants hoping to secure a property.

          Rates dropped in both the inner and outer suburbs of Sydney.
          Closer to the CBD, rental vacancies are at 1.6 per cent, while further out
          they’re even lower at 1.3 per cent.

          “The rising population and lack of new housing developments
          is fueling the shortage,” Gunning says. “It’s difficult for people to find
          housing and this is of grave concern.”

          Metropolitan vacancy rates were last at these low levels in
          March 2012, he says.

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            Online property transactions begin in Queensland


            Online property transactions begin in Queensland

            Posted on Friday, December 13 2013 at 12:32 PM

            The first stage of a national electronic conveyancing system is now operating in Queensland.

            Andrew
            Cripps, the state’s Minister for Natural Resources and Mines, says the release
            of Property Exchange Australia will allow mortgage dealings and releases to be
            processed online.

            The
            state has now joined Victoria and New South Wales in using e-conveyancing for
            property related transactions.

            “The
            majority of mortgages lodged online will be registered within minutes instead
            of the current one or two-day turnaround,” Cripps says.

            The
            move marks the first step towards full online processing.

            “The
            release of stage one is a significant milestone and sets the foundations for
            the next phase of e-conveyancing, which will accommodate a broader range of
            property and title transactions.

            “The
            planned release in 2015 of stage two will open the system to lawyers conducting
            property transfers on behalf of their clients, extending the benefits more
            widely across the Queensland economy.”

            Cripps
            says e-conveyancing will eventually encompass all processes required in
            property transfers and transactions.

            “The
            national e-conveyancing system will allow the settlement and lodgement of
            documents through a nationally accessible system, no matter where the land and
            the parties are located.

            “The
            system will be fast and secure and will allow subscribers to interact with the
            land title registries at various stages to transfer data, alert parties of
            relevant activity and confirm accuracy before lodgement.”

            The
            Queensland Government says e-conveyancing will not change each state’s control
            over its land titling laws and titles register.

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