Issue # 088 February 27th

2015

" What's Happening In New South Wales " Operation Kuban: Real Estate Agents Issued With $120,000 In Fines

It's called 'Operation Kuban', and almost 500 real estate agencies have been inspected across NSW in the past 12 months in the Department of Fair Trading crackdown. A total of $120,000 in fines to both agents and agencies have been issued. 26 February 2015. More. Sydney Auction Success At Fresh Near-Record High As Super Saturday Looms

It was yet another stunning result at weekend auctions when an initial 84.6% success rate was secured by Sydney vendors, according to A ustralian Property Monitors (APM). The sizzling

clearance rate was just below last year’s all-time record result of 86%. 23 February 2015. More.

North Sydney Home Sells For Nearly $200,000 Above Reserve As Interest Rates Push Auctions To “Remarkable” High

An incredibly strong auction weekend set the scene for a remarkable auction in Sydney’s north at the weekend, when a house in the suburb of North Epping, 19 kilometres from Sydney’s CBD, sold for nearly $200,000 above reserve. 23 February 2015. More.

Castle Hill Residents Join Forces Against Developers Over Valuable Land Set For High-Rise

A tactical war has broken out between big developers and residents in north-west Sydney over multimillion dollar rezoning decisions near new rail projects. 22 February 2015. More.

Property Investors Warned On Land Tax

The boom in property investment has sparked action from the NSW State Government, which could be missing out on millions in land tax. The government is urging property investors to register the properties they own by the end of March or risk being charged penalties or interest. 17 February 2015. More.

" What's Happening In Queensland " Man Loses Battle Over Property Valuation

A Mackay man has lost a legal battle with the state's valuer-general over the valuation of his Andergrove property. David Phillipes was told that his Banksia Avenue property had been valued at $210,000 as of October 1, 2012, but he claimed it was more likely in the vicinity of $180,000 given Mackay's slumping property market. 26 February 2015. More.

State’s Star Performers Identified

Two regional towns have been crowned among the best property market performers of 2014, according to new data released on Monday. Highlighting new statistics, the Real Estate Institute of Queensland said south east Queensland, Toowoomba and Cairns were the state’s star real estate performers in 2014. Among the strongest performers in the south east were the Gold and Sunshine Coasts, with both regions recording increases in their median house values, up 5.3 and 7.2 per cent respectively. 25 February 2015. More.

Cause For Alarm, Properties Non-Compliant

Property investors in Queensland are being urged to ensure their rental properties have the correct number of working smoke alarms installed, with new data revealing more than one third of all agent-managed properties do not comply with this basic legislative requirement. The figures have been compiled by Smoke Alarms Australia, Australia's longest-running residential smoke alarms specialist. 25 February 2015. More.

Milton Is Still A Leafy Village On The Edge Of The CBD And It Will Continue To Retain Its Boutique Charm

With a construction rate of about one level per week, the $210 million Milton Residences are taking shape as one of the few developments in the inner western suburb due for completion this year. 24 February 2015. More.

Queensland Suburb Expected To Grow

Young professionals and empty nesters are increasingly being drawn to a master-planned suburb in Queensland, with sales steadily rising according to a new report. Property analyst Urbis completed research on Robina – a 35 year-old master-planned community on the Gold Coast. 23 February 2015. More.

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State Of The Nation Continued…

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"What's Happening In Victoria" Medium Density Living Blooming As Houses Falling From Favour

Melbourne’s love of medium density living is blooming while traditional houses are fa lling out of favour, a new report reveals. The Bankwest Housing Density Report shows approvals for

unit and townhouses has more than doubled in five years, soaring 114.5 per cent compared to an 8.6 per cent fall in approvals for new house builds. 25 February 2015. More. Where Are Most Of Melbourne’s Million Dollar Homes Sold?

Five years ago there were 3,335 homes sold for in excess of one million dollars in Melbourne – not so surprising is that the top 10 sales were in the city’s most expensive addresses. The top three, Brighton, Camberwell and Kew, saw 266, 162 and 157 houses sold for over a million dollars in 12 months. 24 February 2015. More.

Big Year Set For Sydney And Melbourne

Two of Australia’s biggest residential markets are expected to continue their strong growth this year. The February Residential Market Report, released by Propell National Valuers, predicts the Sydney and Melbourne housing markets would continue to grow by 10% and 7% respectively. 24 February 2015. More.

Melbourne Auction Results: Sellers Hold The Upper Hand Preliminary figures show the clearance rate climbed to 74.9 per cent, despite the number of auctions rising above 1000 in a week for the first time this year. The clearance rate has lifted about 15 points in the last two weeks, according to CoreLogic RP Data spokesman Robert Larocca. “The interest rate cut is clearly having a beneficial impact,” Mr Larocca said. 23 February 2015. More.

Do Your Mortgage A Favour And Cash In On Low Interest Rates

It's time to put the squeeze on your mortgage. The real estate industry rejoiced this month as the Reserve Bank cut official interest rates to a record low 2.25 per cent. The move is likely to take the typical standard variable rate down to 5.7 per cent, but with discounting it’s possible to sign up to 4.85 per cent — the lowest cost of mortgage debt since July, 1968. 21 February 2015. More.

"What's Happening In South Australia" Five Of Adelaide’s Northern Suburbs Rank Among The 10 Cheapest In The Nation

Houses in Adelaide’s northern suburbs are not only some of the cheapest in the state, they are also some of the most affordable in the nation. Five northern suburbs have made CoreLogic RP Data’s list of the

nations most affordable suburbs, based on median house values of suburbs with at least 100 sales for the year to November 2014. 26 February 2015. More.

A Buffer Needed On Le Fevre Peninsula To Separate Heavy Industry From Homes: Councillor

The State Government should offer to buy houses close to heavy polluting industry so there is a greater “buffer zone”, a Port Adelaide Enfield councillor says. Semaphore Ward councillor Helen Wright said she wanted the State Government to offer to buy homes close to factories in Birkenhead and Peterhead. 26 February 2015. More. Marina Berth The Holdfast Promenade Complex At Glenelg On Market If you had $550,000 to spend on a piece of South Australian real estate, what would you get? How about a 70sqm marina berth in the Holdfast Promenade complex at Glenelg? At 13m long, the berth at 345/4 Holdfast Promenade Glenelg is on the market for $500,000 to $550,000. 21 February 2014. More.

The Truth About Property And A Crazy Little Thing Called Love Love is in the air, and it’s not only being fuelled by flowers, cards and other Valentine’s Day guff. This month’s official interest rate cut is rekindling and reinforcing the romance that Aussies have long had with real estate. But do we love property too much? 20 February 2015. More.

The Bathroom Is The Hottest Room In The House For Renovations

Renovation is rife in Australia; in fact almost half of the homeowning population is gearing up to give their property a makeover in the next 12 months. Mortgage Choice, a nationwide home loan broker, has just released its Happy As Index which showed which rooms Aussies want to renovate first. Across the country, one third of respondents said the bathroom was on the top of their “to do” list. 18 February 2015. More.

State Of The Nation Continued…

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"What's Happening In Western Australia" WA Property Owners Pooling Big Properties To Make Land Sale More Attractive To Developers Multi-Hectare properties are being pooled around Perth as landowners consider there may be strength in numbers. After The Sunday Times revealed last week that 24 homeowners in Byford were looking to sell 66ha for more than $40 million, more landowners have come forward to share their crowdselling stories. 25 February 2015. More.

WA Real Estate Agents Welcome Foreign Ownership Changes

Changes in rules governing foreign investment in agricultural land have received the backing of WA agents, says the Real Estate Institute of WA. The Federal Government has tightened the rules around foreign purchases of agricultural land amid concerns for Australia’s sovereignty in its food-making regions. 23 February 2015. More.

Consumer Sentiment A Greater Factor In Real Estate Markets Then Ever Before

After nearly a year of declining consumer sentiment, it’s fair to say this barometer of the property market has never been a bigger factor than it is now. Experts from around Australia, including the Reserve Bank of Australia, are more than ever closely monitoring the ups and downs of how people feel as being a major determinant to today’s property bottom line. 22 February 2015. More.

Legal Battle Rages Over Multi-Million Dollar Oceanfront Real Estate

It’s the purple title property in a blue chip suburb that could land people in the red. A multi-million dollar piece of prime oceanfront real estate in Cottesloe is at the centre of a legal stoush after

the owners were unable to reach an agreement over its future. 21 February 2015. More.

Mining Towns Are Really Struggling

During our daily research routine, the Hotspotting team came across a local newspaper article which recorded homes for sale as low as $49,000 in Blackwater, a coal-impacted town west of Rockhampton, with an average sale price around $150,000. 18 February 2015. More.

"What's Happening In The Northern Territory" Inpex Influx Tipped To Boost Housing Prices

Darwin house prices are expected to rise 5 per cent in a matter of months, a leading real estate agency predicts. Raine and Horne general manager Glenn Grantham said the influx of 8000 Inpex workers to Darwin to work on the next phase of the project at Blaydin Point would push up Darwin property prices by as much as 5 per cent by the middle of this year – and rents by as much as 15 per cent. 24 February 2015. More. 60 Villa Retirement Village Planned For Durack

Palmerston will be home to a new $35 million retirement village thanks to a venture between The Heights Durack and Masonic Homes, with construction due to start next year. Retiree housing provider Masonic Homes will build 60 retiree villas and a community centre on a 2.4 hectare allotment in the new Palmerston residential estate. 12 February 2015. More.

Darwin Vendors Waiting 106 Days To Find Apartment Buyers: Corelogic RP Data If you are a seller, how much time will it typically take to to sell your house and unit? CoreLogic RP Data says anywhere between 47 and 106 days depending which capital you are a seller. 16 February 2015. More.

"What's Happening In Tasmania" Another Drum Beat For Tasmania

Tasmania’s property market has experienced challenges over a period of time due to economic downturn which had engulfed the region (Your Investment Property Magazine 2015). However the closing of

2014 saw a turning point in Tasmania’s residential market. 26 February 2015. More.

Cheapest Places To Rent In Australia Revealed

It may seem impossible, but there are still places in Australia with average weekly rentals of less than $150. Statistics provided by Corelogic RP Data for January 2015 showed towns in Victoria and Tasmania dominated the top 10 as most affordable to rent. 20 February 2015. More.

State Of The Nation Continued…

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If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to kevin@smartpropertyadviser.com.au

"Market Update" High-Rise Living Is The Way Of The Future With Unit Approvals Outstripping Houses In Many States High density living is becoming the norm with the number of approvals for units and townhouses at close to a 20-year high. Approvals for medium density homes outstrips houses in three states or territories — New South Wales, Northern Territory and the ACT. 26 February 2015. More.

Record Amount Of Supply Entering Market

Australia is set to build a record number of homes this financial year – and almost 35 per cent more than three years earlier. The Housing Industry Association has forecast Australia will build 195,900 new homes in 2014/2015. That would be a 7.7 per cent increase on the 181,900 homes that were built in 2013/2014. 26 February 2015. More.

Economy 'Won't Be Saved' By Rate Cut One chief economist has argued that the historically low RBA cash rate of 2.25 per cent is not enough to promote economic growth, particularly in the context of a depreciated commodity sector and poor business confidence. As mining investment and commodity prices fall, Australia needs growth to shift to non-mining industries, a report prepared by HSBC chief economist

Paul Bloxham said. 26 February 2015. More. Property Boom Pushes Aussies Into Flats The dream of the quarter acre block with a dog or two and a barbeque is fading fast. Australians are favouring smaller, more affordable homes, with approvals for the construction of flats, townhouses and semi-detached houses nearing their highest level in 20 years. 26 February 2015. More.

Average Tenant Becoming More Likely To Be Older And Have Families The profile of private rental tenants in Australia has changed dramatically over the past 30 years, with an increasing number of families with children and older people renting for the long-term, an academic study has found. 25 February 2015. More. Interest-Only And Investor Lending Continued To Increase Up To The End Of 2014 According To APRA

The Australian Prudential Regulation Authority (APRA) released data earlier today on residential property exposures by Australian Authorised Deposit-taking Institutions (ADIs). 24 February 2015. More.

"What's Happening Internationally" US Residential Rents Up 3.3% Overall But Some Areas Seeing Higher Growth Median residential rents in the United States continued rising nationwide in January, with rental appreciation in some small and even struggling housing markets catching up to the country's hottest areas. 23 February 2015. More.

How To Profit From Declining Dollar If house prices are our national obsession – and they are – and Reserve Bank decisions are the "rates" that stop the nation, maybe the award for Australia's favourite money-related anecdote goes to our stories about the shocks of travelling overseas. 25 February 2015. More.

Controversy Corner

Potential Hike In Fees On Horizon For Foreign Investors The Government’s newly released Options Paper reveals high application fees for foreign buyers. The Real Estate Institute of Australia’s (REIA) recommendations to strengthen compliance and enforcement and increase penalties for non-compliance have been taken onboard in the Government’s latest Options Paper. 26 February 2015. More.

Some Parting Advice

“Those who will succeed in the future will be entrepreneurs who understand how quickly business and money are changing.”

Until Next Time… Kevin Lee

www.smartpropertyadviser.com.au

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