1. Let’s start with cost.  Some real estate agents will quote you a quarterly owners’ corporation fee, with the theory being that it sounds more appealing (and less expensive) than the 4-times larger annual fee!  Although most fees are paid quarterly, always make sure you know the annual cost, so you know what you are really up for in fees in a year.

Once you know the annual fee, you then need to take into account the savings you might make by buying a property managed by an owners’ corporation.  You may still need to pay your contents insurance, but more likely than not, the owners’ corporation annual fee will cover insurance of the building, which may result in a substantial saving to you.  Similarly, maintenance of common areas, such as external lighting, gardening and cleaning, should also result in a cost saving to you, not to mention the immeasurable convenience savings!

2. Sometimes, buying a property managed by an owners’ corporation means that you get better shared facilities than you would have been able to if you bought a “stand alone” property for the same price.

Think about properties with shared pools or gyms or even thinks such as convenient parking spaces, particularly when parking around the property is difficult.  Could you afford to buy a property with these facilities (and in some case, afford the ongoing maintenance of them) if they were not shared, and therefore covered by a managing owners’ corporation?

3. One of the big trade offs of buying into an owners’ corporation managed development is that, to a certain extent, you are not the complete master of your domain anymore.  The facade of your building might be detrimentally impacted by your plan for an industrial strength awning, and it is almost certain that the other owners in your building, who own the facade as much as you do, will want to have their opinion heard on the awning.  The owners’ corporation is the way they do this.

Similarly, your plan to have two dogs might offend against the rules that allow only one, where you hang out your washing and even the house you can have parties may all be governed by owners’ corporation rules.

So, make sure you read the owners’ corporation rules carefully before buying (they will be n the section 32 vendors’ statement) and stay informed about any proposed changes to the rules (see point 5).

4. Think about how decisions made before you purchased the property might impact your ownership.  You might want to ask to see the minutes of the last two or three meetings of the owners’ corporation to see if there is anything that might change your mind about the property you are buying (or change the price as which you are prepared to buy it).

In addition, make sure you find out any information about special levies that may have been issued for the property in the last few years – if additional works are being carried out with sufficient regularity, especially on older properties, you may want to take this into account when you are doing your sums – as these will be extra costs you will be compelled to take on if you purchase the property.

5. Be aware that if you do buy a property managed by an owners’ corporation, it is a good idea to find the time to attend the (usually) annual meeting held by the owners’ corporation management, as well as committing to reading the papers issues in advance of that meeting.

This will give you a good opportunity to not only see how your fees have been spent during the year, but also to meet the other owners and have your say about any plans for the property, as well as any proposed increases to fees.

Four things you should know about the Rye Coastal Scheme

1. What is the Rye Coastal Sewerage Scheme?

If you are thinking of buying in Rye, or are already a home owner in Rye, you may be aware that only some Rye properties are currently connected to sewerage. South East Water is currently undertaking a project to connect 1500 Rye properties to the sewerage network, with work expecting to be completed in stages up to 2014.

South East Water say that the project is required because there is “direct evidence of waste from failing household septic tanks polluting the groundwater, waterways and the environment” and that the project to move away from reliance on septic tanks in Rye “will result in significant improvements to public health and the environment”

2. Is your property covered by the scheme?

To find out whether your property, or the property you are interested in purchasing, will be impacted by these works, you can view the affected area maps on the South East Water website:

Stage 4A and Stage 4B map http://www.sewl.com.au/SiteCollectionDocuments/Community/Current_Projects/Rye-Stage_4A-4B.pdf

Stages 5 to 7 map

http://www.sewl.com.au/SiteCollectionDocuments/Community/Current_Projects/Rye-Stage_5-7.pdf

If you live in Rye and want to be covered by the works, but your property is outside of the designated works area, you are able to contact South East Water to see if your property is capable of being connected, although South East Water say the costs of connecting this way are likely to be significantly higher than if you are already covered by the Scheme.

3. How will your property be impacted?

There are two main ways in which your property is likely to be impacted if it is covered by these works.

First, you may find your nature strip being dug up so that the underground waste pipes can be laid.

Secondly, if you do decide to connect, you will need to meet with South East Water at your property to agree on the location for the connection at your property.

4. What costs are involved if you are covered by the Scheme?

There are costs involved for the home owner or prospective home owner as a result of the works being undertaken by South East Water. It should be noted while the decision whether to connect to the new sewerage system is optional, it appears that some of costs will be unavoidable, regardless of whether a decision is made to connect or not.

These additional costs need to be weighed against the costs you will eliminate as a result of not having to undertake ongoing maintenance of the septic tank system.

The following summary of costs appears on the South East Water website.

1. Everything looks better in Spring

Spring is a great time to sell because the irises and daffodils bloom and the sunshine seems to come back after a dull Winter. Make sure your garden is in the best possible condition. Mow the lawn and trim the edges and if you don’t have flowers in your garden, think about whether you can bring in some potted colour on the deck or around the front door.

2. Spring clean – and that means the windows too!

To give your house the best possible chance to feel airy and light filled (even if it is a bit cramped and dark), give the windows a good clean, inside and out, to maximise the amount of light inside. Outside, get rid of cobwebs and hose down the front of the house, including the paths. Inside, declutter and make sure that natural light is able to stream through your windows.

3. Make your house look warmer too

If you have an open fire place, even if you are still using it into Spring, fill it with pine cones instead. Store away extra blankets which you may have lying on the bed and pack away anything which says “it’s been a long, cold Winter”. Even if it is a bit cold outside, you want to make your house feel as if it’s ready for the warm weather.

4. Play up the weather

If your property has warm weather features – such as a pool or a deck – then make sure you play these up in both your advertising and at your open for inspections. Take off the pool cover. The pool should be sparkling. Make sure the deck and garden furniture are free of cobwebs and think about putting candles or a vase of flowers on the table.

5. Think about the Grand Final

You need to think about the Grand Final, because most of Melbourne (and this includes the Peninsula!) certainly will be. If you are going to open your property on the Grand Final weekend (and don’t caught up in the “One Day in September” hype; this year, the Grand Final is on 1 October) either open it early on the big day, or just open it on Sunday instead.

6. Buyers want to be here when it’s warm

If you do sell in Spring, it is likely that your buyer will want to take possession of the property before Christmas, or at the very least, in January, so they can enjoy the beach and sunshine here on the Peninsula. Make sure that you will be able to accommodate this by being as organised as you can in order to let a shorter settlement happen.

7. Summer is great time to sell too …

If your property does not sell in Spring, have no fear, Summer is a great time to sell too (and so are Autumn and Winter, come to think of it …).

Angela Quintarelli
Indigo Property Marketing
angela@indigopm.com.au
5985 5575

Why is it so hard to value residential property and what can you do to get a realistic idea of what your property is worth? We show you how!

Ascertaining a property’s true value is a tricky business: it’s part science, part art, with a fair bit of guesswork thrown in for good measure!

This is largely because property is unlike other assets, such as shares, where any unit sold is identical to every other unit, explains John Lindeman, author of Mastering the Australian Housing Market.

“Estimating property values is difficult because no two house or units are the same,” he explains.

“Even two identical houses in the same street will have difference prices, and two adjoining units in the same block will sell for different amounts, because one has a better view than the other.”

Gaining an accurate estimate of your property’s value isn’t impossible, however. If you’re keen to figure out what your property is worth, Lindeman suggests the following:

Option 1: Look at comparable sales

“These are the recent sale prices of similar properties in the area,” Lindeman says. Make sure you compare apples with apples by seeking out the recent sale prices of homes with similar features, such as the same number of bedrooms and bathrooms. “While this is the best indicator to use, there are still significant problems if there have only been a handful of recent sales,” he adds.

Option 2: Real estate agent appraisals

Estate agents will generally provide potential vendors with a free market appraisal of what they believe the property will sell for in current market conditions. “This is not a valuation,” Lindeman cautions. “Keep in mind that the appraisal may be designed to win the listing.”

Option 3: Free property price reports

“There is a plethora of free property price estimate reports available online,” Lindeman says. “These usually provide basic demographic information and housing market history of the suburb or post code, and a list of recent sales in the area.” He suggests sticking with reputable sources such as RP Data, Australian Property Monitors and Residex.

Option 4: Licenced valuer

A professional valuation by a licenced, qualified valuer will give you the best indication of what your property is worth, but you’ll need to part out with a few hundred bucks. If you’re trying to decide whether to sell or refinance your property, this might be a worthwhile investment to help you make a fully informed decision. Also don’t forget that if the property is an investment, the cost of obtaining a valuation should be tax deductible.

Source Australian Real Estate Blog Sept 3rd 2011 - realestatebuzz.com.au

Victorian families can now get a free blind and curtain cord safety kit to keep dangerous cords out of the way of babies and small children, thanks to a new State Government safety campaign.

At the campaign launch at the Royal Children’s Hospital today, Consumer Affairs Minister Tony Robinson said blind and curtain cords can be dangerous as they can get tangled around a child’s neck, injuring or even strangling them.

“The Victorian Government is taking action to protect the health and safety of Victorian children by providing families with the resources they need to keep their kids safe,” Mr Robinson said.

“Two Victorian children died last year after being strangled by blind or curtain cords and more children have been admitted to hospitals with serious injuries after becoming tangled in cords.

“To prevent further tragic deaths and injuries, we are providing a free safety kit to all Victorians so blind and curtain cords can be kept safely away from little ones.”

Mr Robinson said the State Government enacted a mandatory safety standard for blinds and curtains in 2008 so all new blinds and curtains come with an essential safety feature to prevent babies and children getting tangled in cords.

“By offering a free safety kit to all Victorians, families with older blinds and curtains can also make their homes more safe and protect their kids from harm,” he said

Director of Emergency Medicine at the Royal Children’s Hospital Dr Simon Young said the risk of serious harm to children from exposed loops and long blind and curtain cords was very real and strongly encouraged all Victorians to use the Government’s safety kit.

“It doesn’t take much to make your blinds and curtains safe and you may save a child’s life by taking a little extra care,” he said.

For more information or to request a free safety kit, contact Consumer Affairs Victoria on 1300 55 81 81 or visit the Consumer Affairs Victoria website - www.consumer.vic.gov.au 
 
 

BIS Shrapnel senior project manager and study author Angie Zigomanis said that, at this stage, all of the action was occurring at the lower-priced end of the market. This is due to a surge in first-home buyer demand as a result of the federal government’s first home owner boost scheme and low interest rates, he said.

BIS Shrapnel forecasts there will be 180,000 first-home buyers in 2009.

Although first-home buyer demand was expected to ease after the expiry of the government’s boost scheme at the end of 2009, upgraders and investors were expected to take the baton, Mr Zigomanis said. “We expect rising confidence in the prospects for an economic recovery in 2010, so investors are likely to return in greater numbers, attracted by increased rental returns and low interest rates”

Among the state capitals, Sydney, Melbourne and Adelaide will show the strongest price growth over the next three years, at 19 per cent. More moderate growth is expected in Brisbane, Hobart, and Canberra, while price growth in Perth and Darwin is expected to be weak as the local economies of these cities are impacted by a decline in investment spending in the resources sector.

BIS Shrapnel estimates Sydney’s median house price at June 2009 to be $530,000, and predicts it will rise by mid-2012 to $630,000. Melbourne’s current median house price is estimated at $425,000, rising to $507,000 by June 2012.

In Adelaide, the median price is estimated at $360,000 and predicted to climb to $430,000 over the three years.

Among other cities around Australia, Newcastle and Wollongong are expected to benefit from the migration of residents from Sydney over the coming years.

The median house price in Newcastle is expected to soar 22 per cent over the three years,while Wollongong is forecast to see growth of 20 per cent in the same period.

In Brisbane, the average house is estimated to cost $391,000 now and is expected to cost $455,000 by mid-2012, an increase of 16 per cent.

Hobart’s median house price is estimated to be $335,000 and will rise by 15 per cent to $385,000 over the three year period.

An average house in Canberra is estimated to cost $440,000, increasing to $515,000 by 2012, a rise of 17 per cent.

In Perth, the estimated median house price is $425,000, expected to reach $475,000 in three years, up 12 per cent.

Darwin’s forecast median house price is $470,000, predicted to show an increase of 11 per cent over the three years.

For the Gold Coast, the Sunshine Coast and Cairns, BIS Shrapnel forecasts prices will increase by 14 per cent, while Townsville prices are expected to grow 13 per cent over the three years.

Article courtesy of Wayne Maddren / Mortgage HouseMortgage House - Rosebud
Office: (03) 5982 3700 | Fax: (03) 5982 3799 | Mobile: 0400 123 374
1243 Point Nepean Road (Corner of 1st Ave)

Released 31 March 2009
 

The release today of the RP Data-Rismark Hedonic Property Value Index heralds some exciting news for the Australian residential market. According to the latest monthly indices, property values are experiencing a recovery from the modest 3 per cent falls seen in 2008. The findings confirmed that over the first two months of 2009, national dwelling values increased by 1.1 per cent with most of the capital gains coming in February (refer attached tables).

RP Data National Research Director Tim Lawless believes this turnaround in market conditions has largely been created by mortgage rates being at their lowest levels since 1970 and as a result, providing a significant boost to affordability. Mortgage rates peaked at 9.6 per cent in August 2008, and have fallen to 5.8 per cent with the prospect of more cuts when the RBA Board meets this coming Tuesday.

According to Christopher Joye, CEO of Rismark International, “The recovery in prices over the last quarter has been driven by the 40 per cent reduction in mortgage rates, the boost to the first home owners grant, the Government’s fiscal stimulus and a significant housing shortage. It is now clear that the boost to the first home owners grant has been one of the Government’s most successful policy measures - this price strength will hopefully encourage developers back into the market.

“The resilience of Australia’s housing market has also been underpinned by our robust banking system, which CBA recently reporting that its 90-day mortgage default rate was a stunningly low 0.38 per cent.

“Despite doomsday rhetoric from some, housing finance volumes have been strong with AFG disclosing that approvals in February 2009 were the best seen since November 2007.

“The improvement in home values in 2009 following modest 3 per cent falls in 2008 highlights the absurdity of the sensationalist predictions by one or two economists in 2008 that prices would fall by 30-40 per cent.

“These index results also vindicate statements last week by the RBA that it expects to see a measured recovery in Australia’s residential property market,” Mr Joye said.

The latest ABS housing finance data suggests real estate investors have yet to make a return to the property market. The value of investment loans has not been this low since 2002, reflecting the low level of investor confidence across all asset-classes.

RP Data’s Mr Lawless suggests the prospect of positively geared property is likely to lure more investors back into the market.

“More and more, properties are showing ‘positive cash flow’. In fact, assuming an 80 per cent loan to value ratio home loan and a discounted 5.4 per cent interest rate, investors in apartments are likely to find that rental income goes a long way towards covering mortgage repayments across every capital city.

“Another interesting dynamic over the last year has been the reversal of the ‘two tiered’ market that was evident between 2003-07.

“During this period affluent areas had a tendency to perform best as the financial services industry boomed. At the same time, the mortgage belts suffered from low sales volumes and declines in values. South West Sydney was a classic case in point - in today’s market it is the opposite. The top 10 per cent of homes in Sydney and Melbourne are off by more than 12 per cent while more affordable homes around the $450k mark have recorded price growth.

“People sometimes forget that homes worth more than $1 million account for less than 5 per cent of all sales. Their performance has therefore little impact on the broader housing market where 80 per cent of all sales occur within the $200k to $600k price bands” Mr Lawless said.

Ends. Detailed tables available in the PDF.

NOTE:

*RP Data and Rismark recommends that caution be used when interpreting property indices results as these results can vary depending on the methodology used and sample size.

In all RP Data and Rismark published indices, methodology is clearly indicated. More information on the RP Data‐Rismark indices can be found here: http://www.rpdata.net.au/indices/

For media enquiries contact:
Mitch Koper, National Communications Manager, RP Data Limited –  0417 771 778  or mitch.koper@rpdata.com

The Southern Peninsula has been waiting four years for a new aquatic centre.

Local seniors, families and those with a disability are in desperate need of a new community swimming pool and hydrotherapy facility.

The plans are finalised, the design is ready and the council is set to go but the project is being delayed by the State Government’s reluctance to allow it to be built on the foreshore.

Along with local residents I have stepped up my campaign to get the State Government to approve this project and invite all those who want to see this facility built to contact my office and register their support.

You can contact me at my electorate office:

Greg Hunt MP

Member for Flinders

Shadow Minister for Climate Change, Environment and Urban Water

Electorate Office:

Shop 4/184 Salmon Street

Hastings 3915

Phone:    03-5979 3188          

Fax:   03-5979 3034

If you’re interested in helping the environment, Bendigo Bank would like to help you by making it more affordable. Generation Green™ Home Loans and Personal Loans offer a reduced interest rate – so instead of paying a premium to be environmentally friendly, you’ll actually enjoy substantial savings.

A Generation Green™ Home Loan or Personal Loan from Bendigo Bank can assist you to purchase an environmentally friendly home, renovate your existing home or purchase other products like solar hot water systems, home insulation or a water tank.

With a 0.50%pa reduction on the Bank’s current residential variable rate and no monthly service fee, a Generation Green™ Home Loan makes building or buying a ‘green’ home more affordable. In fact, you could save more than $51,000 over the life of your loan*.

And if that’s not reason enough to consider a ‘green’ home, remember you might also save on energy and water bills and further reduce your impact on the environment.

Generation Green™ Home Loans aren’t just for new homes. If you have an existing mortgage and want to take advantage of discounted interest rates, it’s often easier than you think to meet our environmental criteria.

This week’s Property Pulse looks at property as a medium to long term investment based on what would have happened had someone purchased the median priced property during 2005 and what position they’d be in today.

With so much attention being directed at the current soft conditions of the residential property sector, many investors seem to be forgetting that property investment is generally a medium to long term proposition. It is very rare to find an investor who buys and sells a property within 12 months, particularly within established residential areas such as our capital cities. Firstly, there is no discount on the capital gain and secondly the buying and selling costs tend to erode the short term gain.

Most property investors will be holding for at least three years – so it is important to analyse the performance of the market over this time frame. Over the last three years almost 20% of suburbs across Australia have witnessed property values increase by more than 50% between July 05 and July 08.
Between July 2005 and July 2008, all mainland capital cities have seen median house values increase. This value growth has ranged from just over $20,000 in Sydney ($6,813 annually) to more than $155,000 in Perth ($51,988 annually).

A similar phenomenon has occurred for units with Sydney’s median unit values recording the smallest amount of growth ($6,233 annually) and Perth unit values increasing by more than $190,000 or $63,596 annually.

These results highlight the diverse nature of the Australian property market with large variations in performance between cities. Increases in property values translate directly into equity for the owners property. This is real growth and can be used to re-invest in a wide range of asset classes. On average, across Australia, house owners have gained more than $85,000 in equity over the last three years and unit owners have gained more than $67,000 in equity, a very impressive result. It is also important to remember that whilst 2007 was a strong year, over the three year period only Adelaide and Perth witnessed a true boom in values.

ARTICLE WITH PERMISSION FROM RP DATA