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The Year Ahead – A 2015 Outlook with Tim Lawless

The housing market is moving into the 2015 calendar year with some substantial momentum, with dwelling values 8.5% higher compared with a year ago across the combined capitals. The growth comes on a backdrop of slowing conditions though, with the annual rate of capital gain peaking early in the year at 11.5% over the twelve months ending April.

While values are still rising at a healthy rate, at least at a high level and in trend terms, we anticipate that 2015 will see the housing market dynamic shift geographically. Conditions are clearly softening across Perth, Darwin and Canberra and we expect this trend to continue.

Sydney and Melbourne have been the stands outs for capital gains over the current growth phase, however the level of growth compared with last year is now lower as some heat leaves these markets.

The markets where there has been some acceleration in the rate of capital gain over the past year are Brisbane, Adelaide and Hobart. These are likely to be the cities to watch for a stronger performance over the coming year.

Regionally, we are expecting 'lifestyle' markets to continue their bounce back in buyer demand and values. At the same time, the downturn in commodity prices and mining related infrastructure spending is likely to continue to dampen housing markets across resource intensive regions.

Central to housing market performance will be the direction of interest rates. There is growing debate that the next rates movement may be down rather than up. A further reduction in the cash rate will bring mortgage rates even lower than their current record low settings. Theoretically, lower rates should provide a boost to housing market conditions, however, if this stimulus does transpire, it is likely to be balanced by pervasively low consumer confidence and softer labour markets.

Additionally, the impact of the recent APRA announcement around investment lending may act to restrict the availability of finance to investors. The banking sector will be under scrutiny to keep growth in investor loans at slower than 10% pace of growth which is likely to have some downwards pressure on investor related housing demand.

Overall we are expecting another solid year of housing market conditions and further capital gains, albeit at a more sustainable rate that what we have seen over 2014.

Paul Oliver | Friday, December 19, 2014 | Comments (0) | Trackbacks (0) | Permalink

Paul Oliver | Tuesday, June 03, 2014 | Comments (0) | Trackbacks (0) | Permalink

In an effort to jump-start the state’s flagging economy, Tasmania has unveiled the nation’s most generous first home buyer grant (FHBG) ever: $30,000.

The scheme doubles the previous $15,000 grant and was announced yesterday by premier Lara Giddings. It essentially pays the cost of a home deposit.

"This is equivalent to some people's after-tax salary," Stuart Clues, executive director of the Tasmanian region of the Housing Industry Association, told News Ltd reporters.

"We hope it's enough incentive to have a gold-rush mentality among people trying to get into the housing market in Melbourne and Sydney. Hopefully, this will be enough for them to decide to come and have a crack at living in Tasmania, even if it's only for five years and then see what happens."

Housing industry professionals are overwhelmingly in favour of the move, effective immediately, with LJ Hooker’s Tasmanian regional manager and head of LJ Hooker Home Loans, Paul O’Regan, saying it will undoubtedly stimulate the market.

“For first home buyers in the $350,000 and $400,000 price bracket, the grant covers the normal minimum 5% deposit required by lenders, as well as a significant portion of the further start-up costs like government stamp duty.”

LJ Hooker recently released a white paper, First Home Buyers; a dynamic and changing market, which revealed 1,800 FHBs in Tasmania were expected to enter the first home buyer market in 2014.

This forecasted state figure is up 23% compared with the previous 12 months when there were 1,464 FHBs in Tasmania.

However, the predicted number of Tasmanian FHBs is now expected to surge even further with the doubling of the new grant, says O’Regan.

“Buying your first home is an exciting time and with a wide range of mortgage products available. However, there are also rules around first home owner grant eligibility, so now is the time for people to speak with a mortgage broker who can determine the right loan package for your circumstances.”

O’Regan says a recruitment drive is also taking place in Tasmania for more home loan specialists to meet the expected demand of first home buyers and buyers in general.

Paul Oliver | Wednesday, December 04, 2013 | Comments (0) | Trackbacks (0) | Permalink

If you're wondering where the next growth spurt is going to occur, read on as the team at present their predictions as to which suburbs are going to grow strongly over the next five to eight years.

VICTORIA fastest-growing suburbs

NEW SOUTH WALES fastest-growing suburbs

QUEENSLAND fastest-growing suburbs

To discuss this article or anything to do with your finances, please call our office today and we will be happy to assist you.

Paul Oliver | Wednesday, December 04, 2013 | Comments (0) | Trackbacks (0) | Permalink

2 December 2013 - RP Data - Rismark Home Value Index Release

Home values edge slightly higher in November

Dwelling values across Australia's capital cities increased by 0.1 per cent in November which was much lower than the increases of 1.6 per cent for September and 1.3 per cent for October.

Today's release of the RP Data-Rismark International Home Value Index results for November showed moderate value growth across the combined capital cities over the month where home values rose by just 0.1 per cent. Although home value growth slowed over November, the combined capital city home values are 8.0 per cent higher over the last 12 months, and 8.3 per cent higher for 2013 so far. The combined capital city index has now recorded its fastest rate of annual growth since October 2010. Read full press release with charts here.

Highlights over the three months to November 2013:

Best performing capital city: Sydney, +5.8 per cent
Weakest performing capital city: Hobart, -4.7 per cent
Highest rental yields: Darwin houses with gross rental yield of 6.1 per cent and Darwin units at 5.9 per cent
Lowest rental yields: Melbourne houses with gross rental yield of 3.5 per cent and Melbourne units at 4.2 per cent
Most expensive city: Sydney with a median dwelling price of $640,000
Most affordable city: Hobart with a median dwelling price of $320,000

Paul Oliver | Wednesday, December 04, 2013 | Comments (0) | Trackbacks (0) | Permalink

Posted Date: 1/25/2011

The Residential Tenancies Act 2010 was passed by Parliament in 2010 and the new laws will commence on 31 January 2011 which is just around the corner. Until then, the existing laws will continue to apply.

The new Act follows a comprehensive review of the existing tenancy laws and includes more than 100 reforms. Some of the changes include:

    A Landlord has new disclosure requirement if the property is for sale, including 14 days notice to the tenant before the first inspection. Two inspections each week are allowed and the tenant can ask for a reduction in the rent for compensation for the inconvenience.
    A one week holding fee may be payable by the tenant, and once this is accepted the Landlord is committed to proceed.
    Lease preparation fees are no longer payable by the tenant.
    Rental bond is capped at 4 weeks rent including furnished premises.
    There is now protection for domestic violence victims including the right to change locks
    Premises must be made water efficient if the tenant is to pay for water usage.
    There are new grounds for immediate termination by the Landlord for serious criminal activities such as the manufacture and cultivation of illegal substances on the premises.
    Alterations by tenants still require Landlords approval which cannot be unreasonably withheld for minor changes
    Landlords can now ask information about co-lessee’s or sub lessee’s for part of the premises, but cannot unreasonably withhold consent.
    A clause to require professional carpet cleaning at the end of the lease is prohibited unless pets are allowed.
    30 days termination notice is now required instead of 14 at the end of a fixed term lease.
    90 days termination notice is now required after a fixed term lease has expired.
    After a tenant has moved out, rubbish and perishables left behind can be disposed of immediately, furniture and clothing must be kept for 14 days, personal effects such as bank statements and photos must be kept for 90 days.
Paul Oliver | Wednesday, June 15, 2011 | Comments (22) | Trackbacks (0) | Permalink