Hi Property Lovers
Over the next several weeks I will be bringing a great selection of properties onto the market.
To register your interest please call me on 0411 645 174.
Thinking of buying or selling in Nedlands? Call me anytime.
Thursday, April 29, 2010
"Government reverses foreign investment relaxation"
Hi Property Lovers
I came across this article on Australian Property Investor that I thought I'd share.
Temporary residents of Australia who purchase an existing property within Australia will need to sell the property when they leave the country, under freshly revamped rules for foreign investment in residential real estate.
The changes reverse the relaxation of the foreign investment rules the Federal Government introduced in 2008 and 2009.
Some homebuyers and real estate agents have complained in recent months about foreign investors outbidding locals at auctions.
Assistant Treasurer Nick Sherry says the changes are "precautionary", as the Australian property market has weathered the storm of the global financial crisis and remains attractive to foreign investors.
Sherry has confirmed the Foreign Investment Review Board (FIRB) is examining 50 cases of possible breaches of the foreign investment rules.
The changes mean temporary residents are again subject to the same compulsory notification, screening and approval requirements as foreign investors, a provision the government lifted in 2008.
Sherry says there are three major changes for temporary residents.
"There'll be a requirement for pre-screening (and) notification to the Foreign Investment Review Board," he says.
"Secondly, when a temporary resident leaves the country they'll now be required to sell that property back into the Australian housing market."
"And thirdly, in the event of (the purchase of) vacant land, they'll be required to build within 24 months and if they don't they'll then have to sell the land back into the market."
The government is also introducing a tougher compliance and penalty regime for breaches of the foreign investment rules.
The FIRB will use computer data matching to monitor property sales and compare that information with the immigration visa status of purchasers.
"I've had a long, hard look at the compliance regime and the penalties, and I have to say that the compliance regime and penalty regime going back over the last 10 to 15 years has been inadequate," Sherry says.
"And that's why we're announcing significant, major and much tougher compliance and checking and new penalty regimes." The compliance regime will also include a new 1-800 community hotline for people to report possible breaches of the regime, Sherry notes. "A tough new civil penalty regime… will make it easier to secure sanctions and should make anyone thinking of acting inappropriately think twice," he says. The civil penalty regime will include sanctions for buyers, sellers and agents involved in transactions that breach the new rules.
The property industry has welcomed the changes to the foreign investment guidelines and the stricter compliance regime, with the Real Estate Institute of Australia (REIA) saying a number of its members had expressed concerns about the number of foreign entrants into the marketplace and whether they were strictly adhering to the guidelines.
However, REIA president David Airey says real estate agents shouldn't have to run checks on their buyers to make sure they're not breaching the foreign investment rules.
"(The) REIA doesn't feel that the real estate profession should be placed in a tenuous situation requiring the profession to police the foreign investment guidelines relating to real estate," he says.
Urban Taskforce Australia chief executive Aaron Gadiel has also raised concerns over the civil penalties regime, saying clarification is needed about its plan to penalise the sellers of property if the purchaser has breached foreign ownership rules.
"If you're selling your home to someone, you shouldn't be subject to prosecution just because the purchaser has misled you or failed to comply with foreign investment rules," Gadiel says.
Sherry says the changes won't be made retrospectively, meaning foreign buyers and temporary residents who've purchased under the previous rules won't be affected.
Shadow Treasurer Joe Hockey says the government's original decision to relax the foreign ownership rules pushed prices higher and put pressure on the property market.
"Kevin Rudd promised the Australian people he would make it easier to buy houses, not harder," Hockey says.
"When he changed the foreign investment rules he made it harder for Australians and now we've seen yet another Rudd Government backflip."
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
Friday, April 23, 2010
For Sale 18 Kingsway, Nedlands
Hi Property Lovers
Its with great pleasure to introduce to the market this GRAND PERIOD family home with magnificent views. Spacious and inviting, this majestic period home enriched by original detail is perfect for family living and entertaining. Situated in a highly sought precinct that features shopping, schools, UWA and the Swan River all just moments away.
Accommodation: 4 bedrooms, 2 bathrooms, study, formal living & dining, open plan kitchen meals and living area, up stairs large living/retreat with expansive views of the valley and river, alfresco area, pool, large storage area & car parking for 3.
This home ticks all the boxes.......family accommodation, parking for 3, separate living zones, large backyard with pool & alfresco and VIEWS VIEWS VIEWS!
For Sale $2,950,000
To arrange a private inspection or for further information please call me on 0411 645 174.
Thinking of buying or selling in Nedlands? Call me anytime.
Tuesday, April 20, 2010
Property Research over a 10 year period
Hi Property Lover's
I thought you may be interested in knowing what the property market has done in Nedlands compared to Dalkeith & Claremont. The research was done over a 10 year period form 2000- 2010 (ending March).
The first graph shows the growth & median sale price for Nedlands, Dalkeith & Claremont from 2000-2010 as well as the number of sales per year:
The next graph indicates the key peak selling periods for Nedlands, Dalkeith & Claremont....however I feel it is always a good time to sell!!
The final graph displays price range segmentation (12 months ending March 2010) for Nedlands, Dalkeith & Claremont.
Over this ten year period the Perth property market suffered 2 market crashes (the tech crash in 2000 and the GFC crash in 08/09) and a substantial property boom (2006 to early 2008). The graphs proves that when investing in property (which should be a long term investment, 5 years or longer) you will still have growth even when facing a market crash. History proves that the property market always bounces back firm from a crash...proving that property is a sound LONG TERM investment.
Should you have any questions regarding this information please feel free to contact me.
Thinking of buying or selling in Nedlands? Call me anytime
Monday, April 19, 2010
"To sell or keep as an investment?"
Hi Property Lover's
I came across this article on Australian Property Investor today which I thought had some food insight for people who are thinking of selling a property or holding on to it for an investment.
Rising interest rates aren't preventing people from considering an upgrade to a more expensive home, according to mortgage broker Loan Market.
Since the start of the year the company has experienced a 38 per cent increase in enquiries from owner-occupiers wanting to upgrade, says Loan Market chief operating officer Dean Rushton.
"Around 60 per cent of our customers are considering selling to then upgrade to a bigger property," he says.
"They mostly have a high level of equity in their existing home – sometimes as much as 75 per cent – and are wishing to upgrade into the next price bracket."
Rushton says interest rates are still below traditional average levels and the previous four increases haven't had an overly adverse impact on the residential property market.
Those considering upgrading to a new home may want to hang onto their first property as an investment because of the potential to gain from capital growth, healthy rental yields and tax breaks, according to Mortgage Choice.
Senior corporate affairs manager Kristy Sheppard says upgraders should consider Australia's housing shortage and strong population growth leading to more buyers competing for a limited number of properties.
She says hanging on to your property for a number of years and then selling it in a 'sellers market' will increase the likelihood of making a solid profit and having greater capital gains to work with will propel you further towards purchasing a more 'deal' home.
"However, keeping your first home as an investment property can be beneficial," she says.
"Holding on to what is often a smaller, less expensive property may be a profitable long-term investment if it's in a desirable location that sees strong demand for rental properties."
"Of course, you must be able to afford to repay a larger or second mortgage plus ongoing expenses and maintenance costs."
Sheppard notes that in this case the equity built up in the initial property can be used to secure finance for a second property and might help overcome today's stricter lending criteria.
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
"Putting finances in shape can help land a loan "
Hi Property Lovers
I Came across this article today on news.com.au that I thought was an interesting read.
TOUGH lending conditions for homebuyers are expected to continue for at least another year but there are ways to make yourself more appealing to banks and other lenders.
Five interest rate rises since October have not helped borrowers but mortgage experts say most people can improve their loan prospects.
Strategies such as cancelling unnecessary credit cards, consolidating loans, shopping around and seeking specialist advice can boost your chances.
Managing director of Smartline Personal Mortgage Advisers, Chris Acret, says the "ability to repay" test used by lenders has been tightened in response to the global financial crisis but there is a huge difference in the amounts each lender will offer.
"These changes certainly don't mean that securing the right loan for your needs is an insurmountable task but it is certainly a lot more challenging and time-consuming.''
According to a Smartline survey of 22 mortgage lenders, a single borrower earning $60,000 with a credit card debt of $5000 would be able to borrow $277,000 from the most frugal lender and $372,000 from the most expansive lender.
The global financial crisis is over but Aussie Home Loans chief executive Stephen Porges says credit markets are still tight for lenders to tap into, which in turn makes life harder for borrowers.
"Banks can afford to be much more selective in where they give their debt funding,'' Mr Porges says.
"People talk about credit markets opening up.
"Yes, they are, but they were closed (before). Opening up just means you have a crack in the window.''
Mr Porges expects the tough lending conditions to continue "for the foreseeable future''.
"I doubt it's going to improve in the next year, possibly two years,'' he says.
His key tip for borrowers is to make sure they have all their financial information a bank or broker might need.
"And don't fall for the 'how much can I borrow?' trap. That over-gears you when rates are still going up.''
Getting professional mortgage advice can pay off.
"Every bank is changing their criteria often and aggressively,'' Mr Porges says.
"You can be sitting at one bank for six weeks before they reject you, then you go to bank two for six weeks, then bank three for six weeks.''
Mr Acret says cancelling unused credit cards and reducing limits on others can help.
"When most lenders assess your ability to repay a mortgage, they assume that your credit card will be fully drawn up to its limit,'' he says.
Shopping around makes sense as lenders can be "very selective'' about the type of income they include in their repayment calculations.
"Almost every lender treats income derived from dividends, second jobs, child maintenance payments, company profits, bonuses, commissions, government benefits, annuities and rents differently,'' he says.
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
Wednesday, April 14, 2010
The Selling Spree Continues......
Hi Property Lover's
SOLD SOLD SOLD!!!!!!!
With 19 sales in recent months I am almost out of stock......With the greatest demand coming from buyers searching for land value properties, Nth & Sth of the Hwy ranging from $1mil to $2mil as well as homes offering a high standard of living and accommodation. If you are thinking of selling and want your property added to my SOLD list, call me anytime for a confidential market appraisal.
Thinking of buying or selling in Nedlands? Call me anytime.
Kind Regards
"Reserve Bank defends its five rate rises"
Hi Property Lover's
I came across this article which i thought had some good information on why the Reserve Bank has lifted it rates yet again.
THE Reserve Bank has defended its fifth interest rate rise in seven months, saying the economy is growing at "about trend rate".
Reserve Bank assistant governor Guy Debelle told a Senate committee today that the economy was now "not far away" from average levels as the bank monitors inflation carefully.
Asked by Liberal Senator Julian McGauran whether the Reserve Bank was looking at the "real economy," including retail, rural, manufacturing, tourism in its assessment of monetary policy, Dr Debelle said the economy was growing about trend rate.
Dr Debelle added: "(W)e're looking at interest rates which are probably a little bit below average for an economy growing at a trend rate. We certainly take into account the currency in our deliberations."
Dr Debelle said the Reserve Bank looked at all aspects of the economy before deciding the direction of monetary policy.
The central bank lifted the cash rate last week by a quarter of a percentage point to 4.25 per cent, in an effort to further rein in expansionary pressures.
It was the fifth monthly interest rate rise by the central bank since October last year.
During today's inquiry, Senator McGauran asked Dr Debelle, "What's the rush, why five in seven, unprecedented?"
As Dr Debelle begged off answering the question, saying he was not a member of the RBA's board, he also said the RBA still was in the process of getting rates back to normal levels.
After deciding that historically low interest rates no longer were necessary, "we're moving back to something around about average levels, which is not far away from where we are at the moment, given our expectations on where the economy is going," he said.
"Our assessment is they are about where the average of where they have been since 1997.
"They are coming off obviously very low levels, as low as they've basically been for the past thirty or forty years, and they've risen back to about where they've been for the last 10 or 15 years."
This assessment was based on both the official cash rate and the rate that businesses actually pay, he said.
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
"Home loan demand falls for fifth month"
Hi Property Lovers
I came across this article on news.com.au that I thought was a good read.
DEMAND for home loans continued to wane in February, even before the two latest interest rate increases, data released today shows.
Just 50,287 mortgages were granted to owner-occupiers in February, down by a seasonally-adjusted 1.8 per cent compared to January, the fifth consecutive month of decline, Australian Bureau of Statistics data shows.
Economists' forecasts had centred on 1 per cent fall in February home loan commitments.
In trend terms - which the ABS says is a more reliable indicator of underlying movement in the data - the total value of dwelling finance commitments excluding alterations and additions decreased 2.1 per cent in February.
ICAP economist Adam Carr said the lending data would concern the RBA, causing the Bank to reassess the pace of future interest rate rises."It's pointing to a sharp, broad-based decline in lending activity," Mr Carr said.
"That would suggest to me that we're getting to the point where the pace of rate hikes will slow, markedly."The RBA will only hike once more and then ease off."The trend for owner-occupier housing commitments fell by 3.1 per cent, while investment housing commitments increased 0.4 per cent, the ABS said.
Last year's three interest rate rises and an end to the Federal Government's more generous first home-buyer grant at the end of 2009 were blamed for the steady drop-off in mortgage demand.
CommSec economist Craig James said that, while the housing finance figures had been affected by the withdrawal of government stimulus, it should give the central bank reason to hold the cash rate steady."It's time for the RBA to move to the side lines and have a greater assessment of what's going on," he said."They have been more aggressive than what they suggested in their statements and now it's the most aggressive rate hike cycle since 1994."Mr James said he expected the housing figures to continue to underperform over the coming months."It probably isn't going to stop there, with interest rates going up again in the latest month."More people will be on the sidelines doing their sums to see what they can afford to get into the market."Buyers are going to be a little bit more cautious."
The Reserve Bank has since raised the cash rate twice this year, the most recent being at last week's monthly board meeting that took the cash rate to 4.25 per cent and 125 basis points above its 2009 trough.
First homebuyers made up 18.1 per cent of loans granted in February compared to 20.5 per cent in January, and down from a record high of 28.5 per cent in May 2009.
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
SOLD SOLD SOLD!!!!!!!!
Hi property Lovers
SOLD SOLD SOLD
2/10 THE AVENUE, CRAWLEY
For further information please feel free to contact me.
Thinking of buying or selling in Nedlands? Call me anytime
"Foreign property investment debate heats up"
Hi Property Lovers
I came across this article on Australian Property Investor. I thought this was a good read and gives a bit of an insight into the foreign investment debate.
Since March 31, the government has been unable to provide data on the number of foreign investments made in residential housing due to temporary visa changes, according to Shadow Minister for Families, Housing and Human Services Kevin Andrews.
Foreign investment rules were relaxed in the face of the economic downturn in December 2008, to hold up the property industry in case of a collapse.
As a result, now temporary visa holders are exempt from notifying the Foreign Investment Review Board (FIRB) of their property purchases.
It also means that instead of developers being permitted to only sell 50 per cent of developments to foreign investors once tenanted, they can now sell 100 per cent.
In his demand to the Federal Government to compile and monitor data on foreign investment of residential property, Andrews said that this rule change has contributed to housing affordability problems in Australia.
But The Urban Taskforce chief executive Aaron Gadiel believes foreign purchasers have contributed positively to the nation, in boosting housing supply.
"By allowing foreign investors to purchase newly-built housing, more apartment development is made possible, which in turn means more homes available to renters," he said.
"This will help mitigate the strong upward pressure on residential rents arising from our chronic undersupply of housing."
Gadiel said that prior to the recent policy change, developers who rented out newly built homes for six or 12 months were barred from subsequently selling the property to a foreign investor.
"This forced some developers to leave properties vacant, rather than lose the opportunities to sell to investors without permanent residency."
"The new rules enable developers to rent out a home for up to 12 months, without losing the right to sell to foreign investors."
I came across this article on Australian Property Investor. I thought this was a good read and gives a bit of an insight into the foreign investment debate.
Since March 31, the government has been unable to provide data on the number of foreign investments made in residential housing due to temporary visa changes, according to Shadow Minister for Families, Housing and Human Services Kevin Andrews.
Foreign investment rules were relaxed in the face of the economic downturn in December 2008, to hold up the property industry in case of a collapse.
As a result, now temporary visa holders are exempt from notifying the Foreign Investment Review Board (FIRB) of their property purchases.
It also means that instead of developers being permitted to only sell 50 per cent of developments to foreign investors once tenanted, they can now sell 100 per cent.
In his demand to the Federal Government to compile and monitor data on foreign investment of residential property, Andrews said that this rule change has contributed to housing affordability problems in Australia.
But The Urban Taskforce chief executive Aaron Gadiel believes foreign purchasers have contributed positively to the nation, in boosting housing supply.
"By allowing foreign investors to purchase newly-built housing, more apartment development is made possible, which in turn means more homes available to renters," he said.
"This will help mitigate the strong upward pressure on residential rents arising from our chronic undersupply of housing."
Gadiel said that prior to the recent policy change, developers who rented out newly built homes for six or 12 months were barred from subsequently selling the property to a foreign investor.
"This forced some developers to leave properties vacant, rather than lose the opportunities to sell to investors without permanent residency."
"The new rules enable developers to rent out a home for up to 12 months, without losing the right to sell to foreign investors."
This information was gathered from:
http://www.apimagazine.com.au/api-online/news/2010/04/foreign-property-investment-debate-heats-up
Thinking of buying or selling in Nedlands? Call me anytime.
Thursday, April 8, 2010
UNDER OFFER
Hi Property Lovers
UNDER OFFER LAST WEEK
81 WEBSTER STREET, NEDLANDS
33 NAPIER STREET, NEDLANDS
For Further information please call me on 0411 645 174
Thinking of buying or selling in Nedlands? Call me anytime.
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