Harry Charalambous – Plan Assist Property Update

If you find yourself asking this question, it’s time to learn the answer.

The lizard brain (quick) answer is: No. Stop listening to the fear tactics of politicians, and start thinking for yourself.

The brain surgeon (long) answer is: Interest rates are set independently by the RBA Board each month in response to economic conditions such as inflation, unemployment rate, global trade, property markets, currency fluctuations, and a crystal ball.

There is a small influence from the government in the fiscal and monetary policy such as stimulus into the economy. i.e. baby bonuses, pensioner handouts, first home owner grants. Generally speaking, we are in a time of political stability and there is not much difference in policy between the two major parties in Australia, and no radical sweeping changes that will change the nation, like a GSTax or floating the dollar.

So, if you were to ask us the question: Will interest rates be higher or lower if this party wins, the simple truth is interest rates will be the same despite who wins next month’s election.

For more info, read this article 21/07/10

Property values in Sydney suburbs with rail links to the CBD have outstripped those in suburbs without, says new research.

PRDNationwide has discovered that prices in suburbs near railway stations leapt by 12% in 2009 – whereas those in areas without rail links only grew by 8%.

“Population growth continues in Sydney and this has prompted a high demand for places located near public transport facilities as the capacity of roads to cater for the influx of residents, particularly during peak traffic times deteriorates,” said PRDnationwide managing director Jim Midgley.

The research says the median sale price for properties near railway stations increased to $730,000 during 2009. The highest median price was recorded on the North Shore Line Line, with $1,325,500 recorded over the same period.

However, PRDNationwide points out that while growth has been impressive in the short term, both suburbs with and without train stations recorded equal median price growth 3.1% over a five-year period.

Source: Kevni Eddy 6/7/10 www.brokernews.com.au

From: The Adviser 30/6/10

Spring no longer represents the best time to sell, according to RP Data.

New research from RP Data has found evidence to suggest that a great number of listings does not necessarily convert into a great number of sales.

RP Data’s research analyst Cameron Kusher found that, on a national basis, March is in fact the busiest month for house and unit sales.

Nationally over the last 10 years, March accounted for circa 9.3 per cent of all dwelling transactions.

“Despite the fact that March is the busiest month for sales, the results show that there is minimal fluctuation in sales activity except within December and January when sales volumes fall away considerably,” Mr Kusher said.

“Clearly once everything starts to settle down after year-end festive periods, the attention turns back to the property market resulting in strong sales volumes during March.”

According to Mr Kusher, May is the second busiest month for sales, accounting for almost 9.2 per cent of all transactions.

The results also confirm that spring is only the second busiest season for purchasers with autumn attracting 26.6 per cent of all sales compared to: 25.4 per cent in spring, 25.3 per cent in winter and 22.7 per cent during summer.

Mr Kusher said that although there is a ramping up in listings from August through to November, the increase in listings is not matched in sales activity. The strongest increase in sales activity is recorded between January and March each year at which time listings also ramp up.

Source: The Adviser  By: Jessica Darnbrough

In a bid to make buying a house in Sydney that little bit easier, the NSW government has announced that it will no longer charge stamp duty on homes that are “bought off the plan” for less than $600,000.

The change in state policy will cost the NSW government approximately $184 million in lost property taxes.

Stamp duty will be cut by 25 per cent on homes worth up to $600,000 that are bought during construction or at completion, translating into an average saving of $5,623.

The stamp duty changes are expected to be widely welcomed by NSW buyers, as 79.1 per cent of dwellings within the state are sold for under $600,000.

In addition, the government has also introduced other concessions on new home purchases and construction.

NSW Treasurer Eric Roozendaal said the $140 million property construction initiative will save NSW families and investors up $22,490, with first home buyers eligible to receive benefits of up to $29,490.

“This is an Australian-first, signalling the Keneally government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.

NSW building industry body the Urban Taskforce said the government’s latest announcement shows a clear understanding of the need to increase housing supply in NSW.

“This plan is comprehensive – it offers real hope for homebuyers and renters,” Urban Taskforce chief executive officer Aaron Gadiel said.

According to Mr Gadiel, the targeted stamp duty concession is also a welcome message of support to older Australians and will help industry focus on meeting their housing needs.

“When older Australians make the decision to downsize, they will also be freeing up underutilized existing housing stock which can be occupied by younger families,” he said.

Ever dreamed of building your new home or investment property, yet you are so busy working hard at what you do best, you couldn’t possibly get the project off the ground.
The process of self-building can be a resource-stretching time, and you may not have the luxury of being on site when required during the day. These self-builders generally appoint a ‘Main Contractor’ or ‘Project Manager’ with responsibility for making the day-to-day decisions and keeping the project on-track. These can be self-build package companies, architects, project managers, quantity surveyors or builders, and can bring a wealth of experience.
• Advantages:
o Offers you the space to continue in full-time employment or with your day-to-day dedications;
o Less stress;
o Fewer known issues (your project manager can solve these);
o You can stick to the ‘bigger’ decisions;
o Improved knowledge on-site;
o Project managers can offer experienced support to you;
o If instructed to, your Project Manager will ensure your compliance with Building Regs, Planning, Building Control, Health & Safety and your legal requirements as a construction client.
• Disadvantages:
o Project managers can charge around 7-15% of build cost depending on the responsibility you give them, this increases the build cost and therefore reduces your profit.
o Not so involved in the day-to-day decisions, and will have to accept that your project manager will make decisions on your behalf.
o Project managers will not, generally, ‘cut corners’ on health and safety, which can increase costs.

You will need to decide whether or not your experience, ability, resources and lifestyle suit your property project.

Would you employ you for the required tasks?

Once you have identified what suits the project, we recommend engaging the appropriate ‘project partners’ (i.e. the key players in the project; e.g. timber frame company, architect, groundworkers, project managers etc) around you from as early as you can. This will give you a support team that offers lots of knowledge, saves you thousands, and helps you to get your project going!