Being overcharged on your mortgage?
Filed under Australia Mortgage and Finance News · Tagged: mortgage errors
If you want to find out how to stop the banks from taking advantage of you through errors and faulty systems, then keep your eyes glued to this page for the next 3 minutes; you are in for some shocking surprises. The banks have probably already overcharged you many times this year without even knowing it
1st time purchasers create property surge
Amid the economic gloom, at least one group of consumers is out in the market, with housing developers reporting a surge in first-home buyers after the federal housing grant was boosted in October. Companies such as Stockland, Mirvac, Lend Lease and Australand have reported a spike in sales to first-home buyers in their otherwise disappointing half-year results.
That was reflected in weekend auction data, which showed first-home buyers were the most active in the market. Sales to first-timers are up by 25 per cent to 30per cent at Craigieburn in Melbourne’s northern growth corridor, which Lend Lease and Stockland dominate.
“We’re actually selling off the plan in Craigieburn, because we don’t have enough physical product to cope with demand from the first home owners,” Stockland managing director Matthew Quinn said.
“It’s all contingent on bank lending. Interest rates in England are the lowest they’ve been since 1694, but who cares if you can’t get any money?”
There is a risk that demand could plunge again after June30, when the grants are cut from $21,000 back to $7000. Industry pundits, however, are confident the Federal Government will extend the first home buyer grant in some form, but that won’t be clear until the May budget.
The head of the residential division at Lend Lease, David Hutton, said sales had fallen, then stabilised since October.
“I think you’ve got a government here at the moment looking to create sales. The reality is the housing market in Australia is not oversupplied – it’s very different from other markets overseas.”
ANZ chief economist Saul Eslake said he was not surprised developers were stemming supply. “These are market conditions … that is why I am normally sceptical about these grants, as in many cases they do result in just simply pushing up the price of houses.” But in the “unusual circumstances”, in which buyers have the upper hand, grants can work, he said.
Over the weekend, the general market auction clearance rate was a strong 77 per cent but on only 436 properties, well down on the 1146 offered at the same time last year.
More than a quarter of all properties were sold before auction, which agents said reflected vendors’ continuing apprehension about the market.
Building industry begins slow recovery
Filed under Australia Real Estate News · Tagged: building industry
WORK will start on an extra 26,000 homes over the next two years as the building industry slowly lifts from the bottom of the cycle.
But 2008-09 looks bleak for builders, with sods expected to be turned on only 132,190 homes, 17 per cent fewer than the previous year and 50,000 fewer than underlying demand, according to the Housing Industry Association’s national outlook, released yesterday.
Queensland has been hit particularly hard by the weakening economy.
“Tasmania, South Australia and the Australian Capital Territory all look to be riding out these tough times a little better than their larger state rivals,” the HIA report said.
Housing starts are expected to rise to 149,150 in 2009-10 and 158,100 in 2010-11, according to the peak industry body.
HIA chief economist Harley Dale said: “The first-home owners’ boost, mortgage rates at a 40-year low, and the housing components of the federal Government’s national building and jobs plan have the capacity to deliver a moderate recovery in residential activity.”
Earlier this month, the Reserve Bank cut official interest rates to 3.25 per cent, a 45-year low, wiping four percentage points off since September.
“Current housing conditions remain very weak, notwithstanding some spark from the first-home buyer market,” Mr Dale said.
Last week, the HIA said housing affordability for first-home buyers was at its best compared with any time in the past five years. However, it warned rising unemployment posed the biggest risk to a housing market recovery.
The HIA said a worst-case scenario would be the nation’s jobless rate reaching 9 per cent. This would depress the number of housing starts and lengthen any recovery.
The value of property sold at auction is down drastically despite auction clearance rates remaining solid.
In Sydney last weekend, 63.9 per cent of homes sold at auction, for a total of $94.9million. This compared with a clearance rate of 56.3 per cent, but $238.3million worth of property, a year ago, according to researcher Australian Property Monitors.
In Melbourne, $34 million worth of homes sold at auction last weekend compared with $352.1 million a year ago with clearance rates of 73.9 per cent and 70.1 per cent respectively.
For the renovation sector, which accounts for 47 per cent of the money spent in the housing industry, spending was expected to be flat in 2008-09, the HIA said.
Renovation spending was expected to total $32 billion in 2010-11, compared with its previous record of $30 billion in 2007-08, the HIA said.
UK mortgage approvals up in January
Filed under UK Mortgage and Finance News · Tagged: mortgage approvals
The number of mortgage approvals in the UK made by banks rose slightly in January, industry figures have shown.
Mortgage approval levels hit 23,376 last month, up 4% from 22,416 in December, the British Bankers’ Association (BBA) said.
However, the number of approvals in January was still 43% lower than the same month a year earlier.
The total net value of mortgage lending last month was £2.9bn, down from £3.3bn in December.
The latest figures from the BBA come after a number of reports have indicated the extent of the housing downturn.
Last week, the Council of Mortgage Lenders said the number of UK homes repossessed in 2008 rose by 54% to 40,000.
Meanwhile the Land Registry – widely seen as the most authoritative guide to the market – said house prices in England and Wales fell by 13.5% in 2008.
Prices also continued to fall in January according to both the Royal Institution of Chartered Surveyors (Rics) and the Nationwide, although the Halifax said property values rose slightly in January.
13% housing market recovery predicted for Australia
The Housing Industry Association is forecasting a recovery in the housing market next financial year.
Its latest report on the outlook for the sector predicts new home construction to fall by 17 per cent this financial year.
But it forecasts a 13 per cent rebound in the next financial year.
The association’s chief economist Harley Dale says conditions in the market have been buoyed by the sharp fall in interest rates and the Government’s fiscal stimulus packages.
“Certainly at the moment the situation remains very weak, and unfortunately there’s no sign of that changing in the next couple of months,” he said.
“But with the amount of stimulus out there in the economy, there’s cause for optimism moving a little bit further forward.”
The Housing Industry Association says the shortage of homes should begin to narrow in the second half of this year, as the rate cuts and stimulus take effect.
Mr Dale says the rebound from July will help to reverse a substantial undersupply of houses.
“There I think is a lot of years of work ahead of us to completely bridge the gap,” he said.
“But if we can actually get the industry growing again over the next couple of years, then we will slowly be getting back towards the number of homes that we ideally need to be building each year.”
Short term furnished rental – South East Melbourne
Filed under Australia Melbourne Rental Property · Tagged: furnished rental melbourne
Impressive two bedroom home (sleeps 5) is in a small new designer complex in Carrum Downs. Surrounded by the local reserve it provides spacious living, modern designer kitchen with under bench stainless steel oven plus gas hot plates, stainless steel dishwasher and microwave. It has a most attractive neutral decor and quality fittings throughout. Gas ducted heating, large garage with remote control, private fully fenced garden to rear and set in spacious landscaped grounds. The home comes fully furnished with a master bedroom and bunk beds in the 2nd bedroom that can be split in to two single beds and a spare single bed. The house comes with all mod cons including washing machine, TV, computer with wireless internet access so you can search for your long term rental/ home to buy, jobs, cars, schools etc. There are two TV’s a 32″ Plasma TV in the back room and a TV/DVD player and games console in the front room.
| Microwave | Enclosed Garden |
| Fridge Freezer | Barbeque |
| Washing Machine | Garden Furniture |
| Iron/Ironing Board | Bar |
| Television | Linen/Towels Provided |
| DVD Player | Ducted Heating |
| Digital Set Top Box | Off Street Parking |
| Games Console | Child Friendly |
| Hi-Fi | Books, Magazines |
| PC | New arrival information |
| Wireless Internet | Food essentials |
| Bar | Telephone |
Improving Victorian homes energy efficiency
Filed under Australia Real Estate News · Tagged: enerngy efficient homes
Environmental efficiency of residential property is an issue being closely examined by the property profession and the state and federal governments.
An enormous opportunity exists to significantly reduce Victoria’s carbon emissions.
At present new dwellings in Victoria must comply with the five-star standard. This requires a five-star energy rating for the building fabric, water-saving measures, and the installation of either a rainwater tank or solar hot-water service.
New dwellings comprise a small percentage of the housing stock, therefore the challenge is how to lift the energy rating of existing houses.
In Victoria a range of subsidies are available for property owners to install energy and water-saving devices. The Federal Government’s program to insulate 2.7 million homes will provide further impetus to the overall goal of carbon reduction.
The real challenge is implementing a reporting system that will allow prospective buyers to easily understand and compare the energy efficiencies of different properties. Currently, before a buyer signs a contract of sale, the vendor must provide a statement (often referred to as a Section 32) of matters affecting the land to be sold.
The Real Estate Institute of Victoria is working with a range of stakeholders to determine whether Section 32 should contain environmental ratings and what standards the ratings should be set at, or if another means for reporting a house’s environmental standard can be introduced.
It’s only a matter of time until we move to a more transparent system of energy rating for residential houses.
Call for new UK economy boost
Filed under UK Mortgage and Finance News · Tagged: uk stimulas plan
The government is being urged to spend an extra £20bn to stimulate the economy through measures to boost the housing market.
The prominent group of Labour members – Progress, is calling for a freeze on stamp duty on houses valued under £1m for the rest of 2009 and the offer of a £1,000 tax credit to home buyers.
It also wants to see capital gains tax cut and Jobseeker’s Allowance raised.
Former MP Chris Leslie, who is behind the proposals, argues consumers could help the UK out of the economic slump.
Progress, an independent group made up of Labour Party members and trade unionists, promotes modernising ideas and policies.
Mr Leslie, a friend of Prime Minister Gordon Brown, says 2009 should be the defining year of the recession and argues prompt activity by investors and consumers could kick-start the economy.
As well as a stamp duty holiday for properties worth up to £1m, he recommends cutting the capital gains tax rate on new investments from 18% to 10%.
He also wants Jobseeker’s Allowance to be increased by £10. Current payments range from £47.95 to £94.95 a week, depending on age and status.
The paper by Progress recommends a combination of “£12.5bn of additional support and tax reductions stretching to all sectors across the economy”.
It also encourages the chancellor to add “a further £7.5bn in capital infrastructure investment in the current spending review period”.
Mr Leslie said: “The ideas we suggest are designed to ‘define’ 2009 as the bottom of the recession.
“Doing nothing would cost us all dear in the long run. Injecting money into the economy in 2009 will allow the country to return to growth more quickly than if we let the market continue to spiral downwards, which would lead to even greater budget deficits in the longer term.
“We hope that the chancellor will look seriously at these ideas but we are under no illusions about the difficult task he faces in an era of global recession and international credit dysfunction.”
On Wednesday, the prime minister said Britain was working with world leaders towards a “global deal and grand bargain” to deal with the economic downturn ahead of the G20 economic summit in London in April.
Melbourne property market shows revival
Filed under Australia Real Estate News · Tagged: melbourne property market
Real Estate agents say that plummeting interest rates are reviving Melbourne’s property market.
The Reserve Bank has cut rates 5 times since August, slashing the official rate from 7 per cent to 3.25 per cent.
While those who fixed their home loan at last year’s higher rates have seen no relief, falling home loan rates have helped contribute to a clearance rate of 77 per cent this weekend.
But Real Estate Institute of Victoria data shows there are still fewer than half as many auctions than the number achieved during the boom times a year ago.
There were 436 auctions over the weekend, compared to 1146 at the same time last year, as tight-fisted vendors opt for private sales to avoid expense.
About $289 million worth of property was sold by private sale at the weekend, compared with $207 million sold under the hammer.
Top-end property again struggled, with few auctions in the prestige suburbs of the inner south-east.
Hocking Stuart Carlton agent Scott McElroy said low rates made buying a house more attractive compared to renting.
“To think that home loans rates could be under 5 per cent has made buying a house look very attractive,” he said.
Treasurer Wayne Swan won’t apologise to families who fixed their mortgages when he was warning of an inflation crisis.
Reserve Bank Governor Glenn Stevens has revealed a 20 per cent surge in those fixing their mortgages in the first half of last year, before interest rates started to tumble.
They are now paying well over the standard variable rate and face $20,000 fees to unfix their loans.
Mr Swan said economic conditions changed rapidly and it wasn’t the Government’s fault.
“Those people are certainly in a very difficult position,” he told Channel Ten’s Meet the Press.
About Me
Kate Williams has extensive experience working in property valuation and property rental in the UK and Australia over a 10 year period. Kate is now the Managing Director of a Melbourne based Relocation company which initially finds short term fully furnished rental accommodation for new arrivals to the city.
-
Subscribe
Loan Payment Calculator
Currency Conversion
Recent Posts
-
Categories
-
Archives
-
Property Resources
- Furnished accommodation Melbourne - Furnished short term rental accommodation in Melbourne, Australia
-
Meta
