Issue # 090 March 27th

2015

" What's Happening In New South Wales " Reserve Bank Sounds Warning On House Prices

The Reserve Bank has issued a fresh warning about the rising risk of a significant fall in house prices if "speculative demand" fuelled by cheap credit continues to drive the property market. 25 March 2015. More. The Sydney Boom-O-Meter: Does Your House Earn More Than You? Sydney's booming property market has led to many homes increasing in value by a larger amount than the annual pay packets of those living inside them. Go straight to the interactive. Domain Group data has found the suburbs across Sydney where your home is possibly earning more than you. 23 March 2015. More. Real Estate Listings Reveal Massive Difference In Homes Priced At $750k In 2005, 2010 And 2015

A comparison of past and present real estate listings has revealed just how far the spending power of Sydney homebuyers has dwindled over the past decade amid ­torrid buying activity that has pushed prices to unprecedented heights. 22 March 2015. More.

Illawarra A Strong Performing Housing Region: Corelogic RP Data

CoreLogic RP Data says the Illawarra housing market was a region that had been a strong performer over 2014. Sales activity across the region is currently sitting 7% abov e the five year average and median house values have risen by 8.2% over the 12 months to December 2014, while unit values are up 8%. 20 March 2015. More.

Only In Sydney - Ticker Showing Countdown To $1 Million Median House Price

Respected economist Dr Andrew Wilson revels in his latest piece of hyperbole. It is a ticking calculator that gives Sydney's estimated real-time capital city median house price... and when he thinks Sydney will hit the $1 million median house price. Last month, when it started off, he had Sydney at $892,149. 19 March 2015. More.

" What's Happening In Queensland " Brisbane’s Inner City ABC-Change

Inner-city Brisbane suburbs have undergone an ABC-change, with the pitter-patter of little feet everywhere as more Queensland families embrace apartment living. 21 March 2015. More. All Price Brackets Popular With Buyers As Demand Stays Strong For Auctions In Queensland

Both ends of the property market were popular with buyers over the weekend with strong results recorded at auctions in all price brackets. One of the most hotly contested auctions of the day was at

9 Exley St, Kedron. 22 March 2015. More. Queensland The Only Mainland State Where Capital City Remains A Buyers’ Market

If you’re househunting in a capital city, there is no better place than Brisbane to be looking at the moment. Queensland was the only state apart from Tasmania to have its capital city remain a buyers’ market in the Commonwealth Bank-CoreLogic Home Buyers Index, out today. 21 March 2015. More.

Sunshine Coast House Price Recovery Underway: Corelogic RP Data

Sunshine Coast home values have been rising since mid-2013, according to CorLogic RP Data. Over the 12 months to December 2014, house values rose by 6.7%, while unit values increased by 6%. The number of houses sold across the Sunshine Coast has increased by 9% over the 2014 year, while unit volumes have remained virtually unchanged (+1%). 20 March 2015. More.

Gold Coast Houses And Units Selling Faster: Corelogic RP Data

Gold Coast house values are 5.2% higher over the year ending December 2014, while unit values have increased by a lower 4.7%, according to CoreLogic RP Data. Researcher Cameron Kusher noted by comparison, in December 2013, home values increased by a greater amount, up 7.5% for houses and 6% for units. 17 March 2015. More.

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State Of The Nation Continued…

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"What's Happening In Victoria" Melbourne Property Market ‘Most At Risk’ The Reserve Bank is ringing the alarm bells on Melbourne’s boom in high-rise apartments, warning that the inner-city rental market was approaching a point of oversupply. The central bank’s concerns were highlighted in its March financial stability report, which also noted that strengthening house prices were still being driven by investment borrowers. 25 March 2015. More. Melbourne's Housing Crisis: Would You Live In A Floating Apartment?

Would you live in a funky floating apartment? It's happening all over the world, and might help solve Melbourne's housing crisis. It's the first of 10 solutions we're showing you today. Floating homes are but one of a number of radical - and

less confronting - ideas to fix one of Melbourne's biggest problems; a lack of housing options. 24 March 2015. More. Land Released In The New Housing Estate Wantirna Rise In Knox Sold Out In A Day

All 113 home sites in the Wantirna Rise estate have sold within a day. Buyers flocked to the newest housing estate in Knox in Melbourne’s outer east on Saturday and paid a total of

$53 million for the vacant land. The project attracted 200 registered buyers from more than 2500 inquiries at the estate at 56 Mountain Highway, Wantirna. 23 March 2015. More.

'Unfit' Victorian Broker Banned By ASIC

Meenakshi Devi Callychurn of Maribyrnong, Victoria, is the sole director of Unique Mortgage Services and the sole key person and fit and proper person under UMS' credit licence. UMS was formerly owned and operated by Rudy Frugtniet, who was permanently banned from engaging in credit activities by ASIC in July. 23 March 2015. More.

Toorak Triumphs With Melbourne's Highest Median House Price: REIV

Toorak truimphs among the 59 suburbs in Melbourne that currently have a median house price of $1 million or more, according to th e REIV. Of these, 36 suburbs had more than 30 sales in the December 2014 quarter. 18 March 2015. More.

"What's Happening In South Australia" FHBs Back 'Super' Idea

South Australian first homebuyers are rallying behind Treasurer Joe Hockey’s comments on considering proposals that would enable young Australians to use superannuation to buy their first home. More than 65% of South Australian first homebuyers would be willing to dip into their superannuation savings to help fund a home deposit. 23 March 2015. More.

Overhaul Of The State Planning System Gets Cabinet Approval

Homeowners, businesses and developers should expect to save time and money on planning applications as early as next year, now that the State Government has accepted the major

recommendations of a review into the system. Cabinet has signed off on the Government’s response to the independent review. 24 March 2015. More. Variety SA Mannum House Up For Sale In Auction By Toop & Toop

South Australian’s love of the river is poised to benefit hundreds of local children who are sick, disadvantaged or living with special needs. Variety SA will this weekend auction off its first charity house up

at Mannum, with proceeds helping South Australian children doing it tough. 22 March 20 15. More.

Budget Adelaide Market Tipped For Subdued 2% Annual Growth: Domain Group

The Adelaide housing market recorded another year of solid activity over 2014 with the median house price increasing by 4.6%, according to the Dom ain Group senior economist, Andrew Wilson. This is despite the continued underperformance of the local economy. 20 March 2015. More.

Lang Walker Commits $600 Million To Redevelop Adelaide City Centre Property developer Lang Walker is to undertake a $600 million project to upgrade the centre of Adelaide, including the development of a new Festival Plaza, offices and an expanded retail precinct. It is the first time in more than 40 years that the city area has been redeveloped. 19 March 2015. More.

State Of The Nation Continued…

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"What's Happening In Western Australia" Oversupply Floods Perth Residential Market

Perth’s housing market has “tipped the scales to oversupply” amid slowing sales and rising construction, according to an industry body. The number of homes on the market has reached 14,000, while the number of rental properties increased to over 6,500. 24 March 2015. More.

Forget The Postcode: Buying In Next Door Suburb Saves Money In Perth

Significant price differentials between neighbouring Perth suburbs are increasing apparent to buyers willing to slightly compromise on location. Peppermint Grove tops the city's

list with a median price of $3.95 million - but that is almost three times more than neighbouring Mosman Park's $1.4 million median. 23 March 2015. More. Woodlands Resident Leaves $1.2m House-Sale Proceeds To Heart Foundation And Diabetes Research What could be better than buying a new home — other than finding out afterwards that your million-dollar bankroll was fulfilling a little old lady’s last wish. Long-term Woodlands resident Lurline Giles bequeathed the proceeds of the sale of her property on her death to be jointly shared by the National Heart Foundation WA Division and Diabetes Research WA. 20 March 2015. More.

Australia’s First Property Crowdfunding Platform Hits The Market A Perth-based startup is looking to connect everyday investors with property developers who are seeking capital for their next project. CrowdfundUP, Australia’s first real estate crowdfunding platform, hopes to tap into the global property market. Perth-based real estate developer Megara will be the first real estate developer in Australia to participate in the platform’s developer partner program. 19 March 2015. More. Around 30% More Homes For Rent In Perth Than Last Year: REIWA

Perth house sales during February were down on the same time last year. Turnover was down around 16% on last year, to 1,870 reported sales, according to REIWA. The median house price eased by around 1%, or $5,000 to $547,000. 16 March 2015. More.

"What's Happening In The Northern Territory" Record Number Of Darwin Homes Listed

The Darwin market continues to be a buyers’ gold mine, with a record amount of houses listed over the past week. That’s despite dwelling numbers throughout January dropping, as reported by the NT News Real Estate guide last week. 24 March 2015. More.

An Entertainer’s Delight

For those with a bit of cash to spend on a property that stands out from the rest, this recently built home is sure to captivate those seeking an estate screaming glamour and sophistication. The house at 14

Riddick Circuit, in Frances Estate, Stuart Park was completed by One World Builders last year and opened to the public for viewing in August. 21 March 2015. More.

Darwin Leaves 18% Annual Price Growth Long Behind: Domain Group A weakening resource-based economy and rising affordability barriers from previous strong prices growth prompted buyer activity in the Darwin housing market to decline over 2014, according to the Domain Group senior economist, Andrew Wilson. 17 March 2015. More.

"What's Happening In Tasmania" Tasmania's Mersey-Lyell Named The Nation's Best Buyers' Market

While Tasmania continues to favour buyers, Sydney and Melbourne offered even more favourable conditions for sellers in January 2015, according to the latest Commonwealth Bank/CoreLogic RP Data Home Buyer's Index. 23 March 2015. More. Budget Hobart Houses Will Be The City's Best 2015 Performers: Domain Group

The Hobart housing market will consolidate its performance of 2014 with moderate prices growth expected through 2015, according to the Domain Group senior economist, Andrew Wilson. Hobart has recorded prices growth over the last two years following a subdued period of buyer activity. 20 March 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" Illegal Foreign Property Buying 'Inevitable', Says FIRB

Regulators' ability to uncover and prosecute illegal residential property buying by foreigners is "sorely limited" and such sales are "inevitable", the Foreign Investment Review Board chairman has admitted. Chairman Brian Wilson said a national register for property transactions was needed to help track buying by foreigners. 25 March 2015. More.

Home Loan Creation To Grow Up To 10%

Australia's $1.4 trillion home loan industry is set for another strong year, following record breaking mortgage figures in 2014, as little stands in the way of growth of up to 10 per cent. With the official interest rate at a record-low 2.25 per cent, home loan origination will increase between six and 10 per cent this year. 25 March 2015. More.

Property Spruikers Pursue SMSF Investors SMSF practitioners are reportedly being harassed by property developers offering big commissions to spruik developments. Moran Howlett Financial Planning principal Cameron Howlett said his advice firm had been inundated by calls and emails from major developers offering commissions for spruiking property to clients. 23 March 2015. More. 3 Booming Inner-City Suburbs Three inner-ring capital city property markets have taken off this autumn, with one real estate agency saying things are only going to get hotter. Raine & Horne said inner-ring capital city property markets across Australia have started the autumn selling season with “all guns blazing”, predicting buyer urgency and a shortage

of stock would amplify the situation. 23 March 2015. More. Has The Apartment Construction Boom Saved Australia From Recession?

With construction beginning on more than 50,000 dwelling units in the September 2014 quarter, up almost 20% on the previous year, is the construction sector all that's holding Australia back from a recession? 23 March 2015. More.

Are Baby Boomers Overheating The Property Market? Negative gearing: it’s a complicated and bizarre-sounding name for a relatively simple idea. If you own an investment property, and the cost of the mortgage interest and maintenance exceeds the income you receive through rent, you can claim tax back on the difference. 19 March 2015. More.

"What's Happening Internationally" US Home Prices Growing At Fastest Rate For A Year Total existing home sales, which are completed transactions that include single family homes, town homes, condominiums and co-ops, rose 1.25% in February and are 4.7% higher than a year ago and above year on year totals for the fifth consecutive month. 25 March 2015. More.

Is It A Gift Or Just A Guarantee?

Any parents wanting to assist their offspring in buying their first property have been warned to carefully consider how they provide the funds, to ensure they’re best protected. Mortgage broking group Smartline Personal Mortgage Advisers suggests that parents need to be cautious about written confirmations that funds are a gift, if in fact there’s an expectation the funds will be repaid in the future. 23 March 2015. More.

Controversy Corner

Bruce Billson Denies The Government Is Under Pressure To Dump 1.5% Small Business Tax Cut Small Business Minister Bruce Billson has played down speculation he and Prime Minister Tony Abbott are under pressure to drop the government’s proposed 1.5% company tax cut for small businesses from this year’s budget in favour of accelerated depreciation for small business capital purchases and wages. 24 March 2015. More.

Some Parting Advice

“Those who have the ability and flexibility to quickly change and adapt will win.”

Until Next Time… Kevin Lee

www.smartpropertyadviser.com.au

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