Discuss shipping / removals queries with PSS International Removals

If you’re in the UK and are emigrating overseas, then a quick reminder that as part of our series of chat sessions with industry experts, our sister site – pomsinoz.com, will be hosting aLive Chat session with PSS International Removals tonight – 19th May at 19:00 – 21:00 UK time.

>To take part, either head over to our sister site – PomsInOz Australia Migration & Expat Forum and click the ‘chat’ button or use this link – PSS Chat

Once the chat software has loaded, tick the ‘Guest’ option at the top of the chat window, then choose a username and enter the ‘PSS International Removals’ chat room.

Liam Witham from PSS will be hosting the chat and will be on hand to answer any shipping / removals queries you may have.

The session will last approximately 2 hours.

UK Mortgage Rate falls

The average interest charged on a two-year fixed-rate mortgage has fallen below 5% for the first time since June, according to Moneyfacts.

Prices had risen during July when the average cost peaked at 5.21% by the end of the month.

The financial information service suggested that competition was now increasing among home loan providers.

However, the cost for those homeowners looking to fix their repayments over a longer period has continued to rise.

“Swap rates have been falling over the last few weeks, but mortgage rates on medium-term deals are yet to follow suit,” said Michelle Slade of Moneyfacts.

“Borrowers will be hoping the easing of credit criteria continues and that lenders will start to reduce the large margin for risk they have been taking over the last year.”

She said that there were signs that the worst of the squeeze for mortgage borrowers could be over, after many potential owners – especially first-time buyers – found that they have had to offer a large deposit.

“Borrowers are finally starting to see more positive news coming out of the mortgage market,” she said.

“Lenders have become accustomed to the post banking-collapse world and appear to finally be relaxing their credit criteria.”

Separate research by price comparison website Moneysupermarket.com has found that people are still reverting to their lender’s standard variable rate (SVR) instead of remortgaging.

Consequently SVR rates have risen, and now stand at an average of 4.7%, according to the website’s figures.

“Borrowers need to be aware that lenders are free to price their SVR as they please,” said Hannah-Mercedes Skenfield, of Moneysupermarket.

The latest data on mortgage lending by the major banks will be published on Tuesday.

Australian Housing recovery stalls

Hopes for a recovery in the housing sector have been dashed by fresh data showing new home sales were flat in July.

The volume of new home sales increased 0.1 per cent in July, following a 0.5 per cent increase in June, the Housing Industry Association said today.

“Housing finance figures point to an emerging recovery in trade-up buyer and investor numbers, but looking beyond first time buyer related activity we’re not as yet at a point where we can talk of a broad based recovery in private new home demand,” HIA chief economist Harley Dale said in a statement.

States showed a wide variation in results with house sales dropping 4.4 per cent in Victoria, 11.6 per cent in South Australia and 3.1 per cent in Western Australia.

In NSW they increased 9.8 per cent and vaulted 10.2 per cent in Queensland. “Throw into the mix approvals processes that are bogging down the recovery and a slow start to the Social Housing Initiative and we are looking at a moderate rather than strong lift in building starts through the second half of 2009,” he said.

The Federal Government had hoped that the First Home Buyers grant, along with record low interest rates, would jumpstart the housing industry and provide a catalyst for the economy in coming months.

The First Home Buyers grant boost is set to reduce to $14,000 from $21,000 by the end of September. The Reserve Bank is widely expected to begin raising interest rates from its current level of 3 per cent, possibly as early as October.

“In a change of forecast, we have dragged forward the expected timing of the RBA’s first rate hike to October, from February,” said JP Morgan economist Stephen Walters in a statement.

However, in the wake of more evidence that Australia’s economy “apparently has skated through the financial crisis without sustaining much damage, the case for an earlier tightening has become irresistible,” he said.

Reserve Bank indicates No more Rate cuts

Australia: It appears as through the board of the Reserve Bank has, in effect, ruled out further interest rate cuts as house prices and retail sales soar toward record highs.

The bank’s announcement yesterday afternoon pushed the Australian dollar one cent higher to more than US84c, the first time it has reached that level since the start of the financial crisis. The sharemarket climbed another 1 per cent to its highest point since November.

Yesterday’s statement was the first in six months to announce neither a cut in rates nor the contemplation of a further cut.

Instead the board expressed concern that improving conditions might ‘‘impinge on prospects for sustainable growth and achieving the inflation target’’, enough to make the market price in an even-money chance of a rate rise in November, and a total of 2 percentage points of rate increases by end of next year.

Such rises would push variable mortgage rates back up above 7 per cent by late next year and add $300 to the monthly cost of servicing a $300,000 loan.

Adding weight to the bank’s contention that ‘‘the risk of a severe contraction in the Australian economy has abated’’, retail figures showed spending in NSW climbing to yet another record high. National spending slipped 1.4 per cent in June but remained more than $1 billion above where it was before the onset of the financial crisis.

Also released was official confirmation of house prices soaring back to pre-crisis levels. The Bureau of Statistics’ weighted average of Sydney house prices jumped 4.9 per cent between the March and June quarters, its biggest jump since the height of the real estate boom in 2003. The Sydney index is now just 2.8 per cent short of its all-time high.

A Deutsche Bank economist, Tony Meer, said the Reserve Bank would be concerned, pointing to last week’s speech by its governor, Glenn Stevens, who said it would be ‘‘quite disturbing’’ if recovery boosted house prices without providing many more dwellings.

Australian house prices defy the economic downturn

Median Australian house prices appear to have defied the downturn.

Predictions of a dire downturn of Australian house prices seem to have been shaken for the time being, as most residential markets ended the 12 months to the end of June in positive territory.

Although the outlook for residential property in 2010, in the post-first-home-owners-boost payment period, is uncertain, figures from Residex show few markets posted big falls in the past financial year.

Perth was the worst performing market of the period, with a 5.76 per cent fall in the median value, to $475,500. The dip followed a couple of exceptional years of growth and a 10-year average of healthy, 12.41 per cent annual gains.

At the opposite end of the spectrum is Darwin, which powered on regardless of the economic downturn, achieving 14.81 per cent median house price growth, to a median house price of $477,000.

Sydney’s median house price sits at $577,500, after the harbour city posted marginal 0.79 per cent growth during the year.

Melbourne outclassed its northern neighbour, with gains of 2.69 per cent during the same period. Its median house value is now $492,400.

Brisbane’s fell slightly, by 0.06 per cent, in the 12 months to June 30, to end at $452,500. Like Perth, Brisbane’s fall comes after a period of strength, including 15.2 per cent growth in the 12 months to June 30, 2008.

Canberra’s median house price is $474,000, after gaining 1.36 per cent in the year to June 30; Hobart’s $356,000 after gaining 2.82 per cent.

Tips for selling your house

In the current tough economic crisis, the idea of speculating to accumulate (spending money to make money) is a prospect that many property sellers may find difficult, particularly those who are carefully watching the purse strings.

However, experience shows us that by focusing on some key improvements to your home, you can make up to $3 for every $1 outlaid, and sell your home in less time and with less stress.

Different categories of buyers can be spooked by a variety of perceived problems with the property – and a glossy brochure and professional photos can’t cover over damage to the walls or a garden that has turned to wilderness.

Pick your target market and spend wisely. You’ll see the returns.

First-Home Buyers

First-home buyers love that “brand-new” feeling, and when they fall in love with a property, they can become competitive enough to drive the price up significantly.

However, they are easily scared off by cosmetic damage, which can cause irreversible heartbreak in their romantic adventure.

If your property appeals to this market, fix any cracks in the ceiling, dripping taps in the bathroom and rust stains on the kitchen bench.

You may know that the ceiling damage is only cosmetic and not symptomatic of any structural problems, but it can enough to kill the love affair.

First-home buyers don’t require a glamorous renovation, but something clean, neat and functional.

Spending a little money on replacing light switches, power point covers and door handles can modernise the look of the property, which may be enough to secure the First-Home Buyers’ passion, and their desire to bid up on the sale.

Secure haven for families

Families with children are looking for comfort, safety and security. Renovations may be considered further down the track, but for the moment, the family wants to settle in to a comfortable home.

If you target this market, make sure the home has a fence to protect wandering toddlers from the street and install locks on gates.

Create open spaces within the home where the family can gather comfortably.

Borrow or hire a good quality swing set for the yard, include an outdoor dining table, and your buyers will be salivating over the prospect of backyard barbecues with the family in no time.

Easy life for empty-nesters

Couples in their advancing years are looking to downsize, and live in a secure and low-maintenance home.

They require plenty of storage for their lifetime of possessions, and possibly a spare room for the grandkids to stay over.

Ground-floor properties are particularly sought after, but they must not have high maintenance requirements.

Hedges that need regular pruning, expansive lawns and garden beds are going to be a turn-off for this group. Likewise, elaborate light fittings and cornices that attract dust and cobwebs are going to produce more work for couples in their twilight years.

Best to go simple and minimal with your makeover, to reduce the upkeep.

UK Housing markey shows signs of upturn

According to a recent survey commissioned by the Home Builders Federation, the housing market is showing the first signs of an upturn since 2006.

The HBF’s survey of the UK’s major home builders found sixty percent of those asked had seen an increase in sales when compared to the same period last year.

The Home Builders Federation says the industry has been through the economic equivalent of a tsunami, with an estimated quarter of a million construction jobs lost in the last 12 months. The MBF goes on to say that the biggest obstacle to recovery is now the availability of mortgages or lack of.

Chancellor Alistair Darling is to meet with the banks next week to remind them of their legally-binding obligation to lend more money to homebuyers.

Steve Turner, spokesman for the HBF, said the survey results were a welcome boost.

“It’s been a very difficult year, but what we are starting to see is a consistent set of modest but positive results now in terms of visitor levels, in terms of reservations.

“I think for the first time in a number of months the industry is starting to feel more positive.”

However, experts were warning that the industry was still fragile because although new home sales had increased, they were at an extremely low level last year.

Newhome loan applications at 16 month high

NEW home-loan applications soared to a 16-month high of 63,855 in May, but analysts warn the housing bubble will burst when lucrative government grants to first-home buyers are cut this year.

The average loan has risen 9.6 per cent in the past year to $266,900 on the back of soaring consumer confidence.

Owner-occupiers borrowed $17 billion, the highest monthly amount in 26 years, and a record level of first-home buyers accounted for more than 29 per cent of home loans.

Loans for new construction rose 8 per cent to 6334 – the highest level in seven years and 50 per cent higher than in December.

Erin Ronaldsen, residential research manager at real estate agency CBRE, said first-home buyers had helped prop up the market.

“In all likelihood the withdrawal of the first-home owners grant boost at the end of December, and state-based measures in July 2010, will have a dampening effect on the sub-$500,000 market,” she said.

“We expect falls could reach 10 per cent from the peak in some areas, depending on local market conditions.”

She said Victorian first-home buyers were getting better value than the national average.

The average value of the loan taken out by Australian first-home buyers has risen $20,400 since the introduction of the boost in October, but Victorian loans have risen an average $10,800.

CommSec economist Savanth Sebastian said almost 20,000 first-home buyers took out loans in May and banks were the big winners from the lending boom, writing almost 92 per cent of all loans.

“Consumer sentiment is well and truly out of the doldrums. The combination of rate cuts, fiscal stimulus and the perception that the worst is behind us has seen a substantial shift by consumers to being more optimistic about the future.”

But it all came back to job security, he said.

“With unemployment expected to rise in the next year, sentiment is likely to retreat from this exuberant level.”

Housing Industry Association senior economist Ben Phillips said the number of loans for new dwellings had risen for nine consecutive months, and he pointed to a modest recovery emerging for residential construction.

Melbourne house prices predicted to rise nearly 20% over next 3 years

AUSTRALIAN house prices will rise by nearly 20 per cent over the next three years, buoyed by the “current heat” in the market surrounding first home buyers.

A recent forecast from research house BIS Shrapnel’s Residential Property Prospects report – based on data from the Real Estate Institute, predicts that Melbourne house prices will rise by nearly 20 per cent over the next three years, buoyed by the “current heat” in the market surrounding first home buyers.

Angie Zigomanis said activity in the lower end of the market – buoyed by the boost to the first home owners grant and low interest rates – were generating “green shoots” of recovery.

The report says average house prices in most capital cities will grow by between 11 and 19 per cent over the next three years. In real terms (where prices are adjusted for inflation) the level of percentage growth is about half.

Mr Zigomanis, who said actual prices were more indicative than prices adjusted for inflation, predicts the boost to the first home owners grant combined with low interest rates would kick start further activity in the “upgrading” market.

“If the first home buyers are in the market buying, someone is selling it to them,” he said.

“We’re expecting that increased first home buyers activity to lead through to stronger upgrading demand for people upgrading to their next property,” he said.

Mr Zigomanis said once the (boost to the) first home owners grant expires, and first home buyers drop back out of the market, there’s enough activity in the market so it becomes self-sustaining.

The boost to the first home owners grant will finish at the end of this year.

But the research, based on Real Estate Institute data, said house prices would remain relatively stagnant until unemployment peaked around June 2010.

“Everything’s pointed at people jumping in the market”.

“At the moment we’re dealing with a confidence issue,” he said.

Weak economic growth and rising unemployment meant Australians were hesitant to jump into the market, he said.

The Government forecast in its May Budget that unemployment will rise to 8.5 per cent by mid-2011, leaving one million Australians out of work.

BIS Shrapnel predicts unemployment to peak “somewhere between 7 and 8 per cent” mid next year.

Mr Zigomanis said unemployment would impact house prices “more so from a confidence perspective”.

“Those people who have the means to buy property, and still have a job to buy property, they may be concerned about their employment outlook,” he said.

Melbourne Prediction:

• Median house price $425,000 in June 2009-06-12
• A fall of 6 per cent for the financial year
• Pick up in “upgrader” activity expected
• Nearly 20 per cent increase in prices to 2012

Australian home sales climb to thirteen month high

New home sales rose to their highest level in 13 months in March, as the first-home buyers grant buoyed demand.

Total new home sales rose by 4.2% last month to 8210, accelerating from the 3.9% growth pace in February, according to the Housing Industry Association. The increase marked the third month of gains.

”It is clear that in the first quarter of 2009 the project home building market was buoyed by the First Home Owners Boost for new dwellings together with very low variable mortgage rates,” said HIA Chief Economist Dr Harley Dale in a statement.

”The First-Home Owners Boost for new dwellings is clearly lifting residential building activity and securing jobs within the Australian economy,” he said, calling for an extension of the program past its June 30 cut-off.

Federal Government leaders, including Prime Minister Kevin Rudd, have hinted they intend to scale back incentives for first-home buyers, announced as part of the first round of stimulus spending aimed at reversing the economic slump. The current grant rises to as much as $21,000 if the purchase is for a newly built residence.

Among the states, detached home sales jumped 4.1% in March, led by New South Wales, where they increased 15.2%.

”While the rate of growth in sales reflects to an extent the low base from which a recovery is emerging,” the HIA report said, ”there is no doubt that the previously mentioned triple boost from low interest rates, stimulus to first-home buyers, and builder discounts have injected some life into a previously moribund new home building market, especially in Sydney.”

Sales of detached houses also jumped 14.6% in Victoria and 7.3% in Western Australia, the HIA said.

Low interest rates and the first-home owners’ boost are having a targetted effect, spurring house sales but leaving multi-unit sales ”at very weak levels,” the HIA said.

Sales of apartments rose 4.7% in March, following a flat February and four straight months of falls, HIA said.

”This reinforces the fact that while investor enquiries have increased in recent months, actual building activity in the residential investment space is still heading south, a concerning sign for low and lower middle income rental households.”

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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.

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