Banks can't margin call on residential property unless borrower defaults, because residential property loans regulated by NCCP Act 2009

Is refinancing the right option for you? Jessica Darnbrough for Mortgage Choice by Jessica Darnbrough for Mortgage Choice 05 Nov 2014 How long has it been since you reviewed your mortgage? One year? Two years? Five years? Perhaps you’ve never reviewed it? Whatever your situation, you may be interested to know that it pays to review your mortgage each year. “ It pays to review your mortgage each year. Yearly checks A lot can change in one year, your personal circumstances or financial situation could change, interest rates could move and home loan lenders could start competing more strategically for business. If any of the above happen, you may find that your home loan is no longer ideally suited to your needs. mortgage choice house Read more: 5 tips for buying a home So what do you do if your home loan is no longer right for you? Well, one option is to refinance. What is refinancing? Refinancing refers to the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender. Refinancing can help you to repay your home loan sooner and get on the right track to achieving your next financial goal sooner. In addition, refinancing may help you to lower your mortgage repayments, consolidate your debt or even access equity in your home. To determine whether or not your current home loan is still right for you, ask yourself: •Have your financial/lifestyle circumstances changed since taking out the loan? •Are you looking for a ‘cheaper’ loan option? •Are you looking to repay your loan sooner? •Are you planning on starting a family in the near future? •Are you planning to renovate your property? •Are you planning to downsize/upgrade your property? •Are you dissatisfied with the service provided by your current lender? •Are you considering purchasing an investment property/ies? •Are you considering consolidating debts? If the answer to any of these questions is ‘yes’, refinancing may be a worthwhile consideration. mortgage choice, house Read more: Is an offset account right for me? How does refinancing work? When refinancing you essentially take out a new home loan and use some or all of the funds to pay out your existing loan. Your lender takes care of this process, so you won’t need to worry about writing and sending any cheques. Generally speaking, refinancing is a fairly easy and seamless process. In saying that, there are a few things you should be mindful of before deciding to refinance, including: •Hidden fees and charges: Before you refinance, it’s a good idea to find out about any exit fees, break fees or deferred establishment fees that might apply if you choose to pay out your existing loan early. •Borrowing costs: When you refinance, your new lender may charge a range of upfront fees, including a loan application fee, valuation fee and a settlement fee. It’s worth noting that not all lenders will charge these fees and some may be negotiable. •Lender’s Mortgage Insurance: This is an insurance designed to protect your lender in the event you default on your loan. While you may have paid Lender’s Mortgage Insurance once before, it’s important to know that this insurance is not transferrable. So if you’re planning to borrow 80% or more of the property’s value, you’ll be required to pay it again. •Stamp duty: If through refinancing you increase the size of your loan, stamp duty may be payable. In addition, you may be required to pay a Mortgage Registration Fee. Read more: What is LMI (Lenders Mortgage Insurance)? So, before you make any decisions, it’s important to investigate the various fees each lender intends to charge and then work out whether the benefits associated with refinancing outweigh the costs involved. ---------- Will the Sydney median house price reach $1 million by the end of 2015? Topic Started: 4 Sep 2014, 03:48 PM (6,835 Views) Shadow 4 Sep 2014, 03:48 PM Post #1 Member Avatar Evil Mouzealot Specufestor Posts:10,972Group:Czar MemberMember#22Joined:02/11/2010 The Sydney median house price hit $840K in July as measured by the Residex index. That's an increase of $130K in just a year. Sydney house prices are now up nearly 30% since 2012 and up 53% since 2009. Only another 19% growth is needed to hit $1 million. With 17 months to go (from July), will the Sydney median house price hit one million dollars by the end of 2015, as measured by the Residex index? ================================ Some people (normally property bears) like to suggest that banks can 'call in' or 'margin call' or repossess the homes of borrowers who end up in negative equity simply because (through no fault of the borrower) house prices happen to fall/crash. They claim the banks can do this even if the borrower is keeping up with his repayments. One person has pointed to a statement in this CBA document to back up his claim. His document says... Quote: What we require from you for the loan to operate 3.5 Value of the Security The value of and title to the Security Property must be to out reasonable satisfaction at all times during the term of the Contract. We may obtain a new valuation of any Security Property. Default 9.1 When you could be in default You are under default under the Contract if any of the following conditions apply: (a) Overdue amount: You do not pay on time any amount payable under the contract (b) Breach of contract: You do not keep to the other terms of the Contract or the terms of any Security (c) Value or title unsatisfactory: We are not reasonably satisfied with the value of or the title to the Security Property or the Security over it will be inadequate security for the Loan in accordance with our usual prudent credit standards It should be noted that the CBA document quoted above is not a contract - it is an information booklet about home loans, and therefore non-binding, and not a legal document. Clause (c) is there to cover circumstances where a revaluation is triggered for example due to the borrower knocking down the house. A general fall in house prices would not trigger a revaluation, and the CBA booklet doesn't claim that it would. In fact, the NCCP Act 2009 actually makes it quite clear that banks can't 'margin call', or repossess, or force the sale of a residential property unless the borrower has defaulted on repayments and subsequently failed to comply with a request to remedy that default. National Consumer Credit Protection Act 2009 Quote: Division 2—Enforcement of credit contracts, mortgages and guarantees 88 Requirements to be met before credit provider can enforce credit contract or mortgage against defaulting debtor or mortgagor Enforcement of credit contract (1) A credit provider must not begin enforcement proceedings against a debtor in relation to a credit contract unless the debtor is in default under the credit contract and: (a) the credit provider has given the debtor, and any guarantor, a default notice, complying with this section, allowing the debtor a period of at least 30 days from the date of the notice to remedy the default; and (b) the default has not been remedied within that period. Criminal penalty: 50 penalty units. Enforcement of mortgage (2) A credit provider must not begin enforcement proceedings against a mortgagor to recover payment of money due or take possession of, sell, appoint a receiver for or foreclose in relation to property subject to a mortgage, unless the mortgagor is in default under the mortgage and: (a) the credit provider has given the mortgagor a default notice, complying with this section, allowing the mortgagor a period of at least 30 days from the date of the notice to remedy the default; and (b) the default has not been remedied within that period. Furthermore, ASIC stipulates the following conditions... Quote: http://www.hofinet.org/upload_docs/What_happens_if_my_mortgage_is_enforced_0121.pdf Posted Image Note that these rulings applies to regulated loans. All PPOR (homeowner) mortgages are regulated. All IP (investment property) loans entered into since July 2010 are also regulated, with the exception of large property developer loans (loans for multiple properties values at greater than $5 million). And regardless of the fact that banks have no legal right to take such action (repossession, forced sale etc) against homeowners who are not in default, it wouldn't be in the bank's interest to do so anyway. A loan is an asset to a bank. It would make no sense for a bank to repossess the home of a non-defaulting borrower and then force the sale of that home for less than the value of the loan. It wouldn't help the bank's balance sheet or financial position in any way. Readers may also be interested in this discussion I had with Treasury on the matter... Quote: Hi, I have a question about residential mortgages and the NCCP Act. I'm trying to determine exactly what protection a borrower has from a bank taking foreclosure action in an instance where the borrower continued to make all payments on time and adhered to all other provisions of the mortgage contract. My specific question is this... Do lenders have the ability to foreclose, force the sale of, repossess, call in, demand a loan 'top up', 'margin call' or otherwise take action against a borrower simply because general house prices have fallen? If the mortgage contract includes a clause stating that a default occurs when the lender is not 'reasonably satisfied' with the value of the property, could the lender use this clause in the event of a general property crash to declare that the borrower has defaulted? Would the NCCP permit the lender to take action against the borrower in such a case? For example, after taking out a mortgage, property values in the area fall to a point where the value of the property might be less than the originally agreed LVR, or fall to some other point where the lender is not 'satisfied' with the valuation. Does the lender have the right to then revalue the property, declare that the borrower has defaulted, and take action against the borrower? In other words, the borrower is keeping up with their repayments, has not breached any other conditions of the contract, and the only issue is that the bank decides it is no longer 'satisfied' with the value of the property because house prices happen to have fallen. Is the borrower protected by the NCCP? Thanks for your advice in this matter. Regards. xxxx xxxxxxxxx Treasury response... Quote: Dear Mr xxxxxxxxx Thank you for your inquiry. We understand that some lenders will require the borrower to reduce their liability to a specified amount to reduce their risk exposure where property values fall. However, this is restricted to lines of credit or interest only loans where the principal is not required to be reduced until the end of the contract. We are not aware of any normal ‘principal and interest’ home loans where the lender has the right to sell a property simply because property values fall. However, a provision of this type, if included, could infringe the unfair contracts terms legislation in the Australian Consumer Law. We trust that this information is of assistance to you. Consumer Credit Unit Retail Investor Division The Treasury, Langton Crescent, Parkes ACT 2600 Note that when Treasury refers to 'interest only loans where the principal is not required to be reduced until the end of the contract', they are talking about commercial or developer type loans there, where the principal must be repaid, usually in full, at the end of the term. Normal property investor IO loans just roll over to P&I, or get extended as IO at the end of the term. Anyone who wishes to verify this response can contact Treasury themselves. The email address I used was ConsumerCredit@TREASURY.GOV.AU Further information and debate about this topic can be found here... NCCP Act 2009: Lenders not permitted to 'call in' loans unless borrower is in default The NCCP Act does cover normal property investor loans... http://www.asic.gov.au/asic/asic.nsf/byheadline/Does+the+new+credit+regime+apply%3F Quote: Investment lending for residential property If the loan is to a natural person, and the credit is provided wholly or predominantly to purchase, renovate or improve residential property for investment purposes, then the loan is regulated under the National Credit Act, and the credit provider needs to be registered and licensed. ‘Residential property’ is defined in the National Credit Act and includes land on which a dwelling is or will be affixed predominantly for residential purposes. However it should be noted that large property developer loans are exempt (loans for multiple properties valued at greater than $5 million)... Quote: http://www.comlaw.gov.au/Details/F2011C00035 65C Residential investment property loans — exemption from Code The Code does not apply to the provision of credit if: (a) the credit is provided for the purpose of investment in residential property; and (b) the credit is not provided for the purpose of investment in a single residence; and (c) the total amount if the credit provided, or to be provided, is more than $5 000 000. (Note: the words 'and' above mean all three clauses (a), (b), and (c), must apply for the exemption to apply) Quote: http://www.finder.com.au/home-loans Regulated Home Loans The majority of types of home loans or applications as a general rule are regulated under the NCCP Act. The rules of these can be quite complicated but a loan will usually be regulated if it falls under certain conditions. These conditions include the fact that the home loans are issued to actual individuals and not companies; that the loans are being made for domestic or household purposes or to purchase or renovate the home or even to refinance the home. A charge is to be made for the credit and this must be done in the course of a business. Most standard home loans due to these conditions are regulated with the exception of those that are made to companies and those that are used to invest in commercial property. These exceptions may provide for more loan options. Quote: http://www.homeloanexperts.com.au/home-loan-articles/nccp-act/ Which home loans are regulated? As a general rule, almost all home loan types & applications are regulated under the Act. The rules for this are complicated, however a loan is likely to be regulated if it meets the following conditions: The borrower is natural person; and The credit is provided wholly or predominately; For personal, domestic or household purposes; or To purchase, renovate of improve residential property for investment purposes; or To refinance credit that has been provided wholly or predominately to purchase, renovate or improve residential property for investment purposes; and A charge is made for providing the credit; and The credit provider provides the credit in the course of a business. This means that most standard home loans are regulated under the Act. The main exceptions are: Loans in the name of a company (i.e. not to a “natural person”). Loans used predominantly to invest in commercial property, shares or a business. There may be more flexible lending products available for these loan types, where no form of income verification is required. These are known as a no doc loan. Posted 7 Feb 2012, 10:23 PM · 7 comments 1. Comment by Rastus2, 7 Feb 2012, 10:45 PM What about the unregulated mortgages that exist ? are they vulnerable ? I believe most (all ?) IP mortgages taken out prior to the 1 July 2010 NCCP Act 2009 were unregulated. That is a lot of 'exceptions' to your claim is it not ? 2. Comment by Shadow, 7 Feb 2012, 10:52 PM The rules also existed prior to the 2009 NCCP Act. Before the NCCP, the relevant legislation was the UCCC. I have three IP loans, all taken out prior to 2010. None of them have a clause that would allow the bank to take any action just because house prices fall. There may be a few unregulated residential loans out there, but the numbers would be tiny compared to regulated loans. 3. Comment by Rastus2, 9 Feb 2012, 07:03 PM How many is a few Shadow ? 3 ? 10 ? 1,000 ? 10,000 ? 20,000 ? (wow a few might be a lot eh ?) In truth any unregulated mortgage that still exists may fall into this category. Thus, your blog (and forum thread's) original claim is incorrect... Banks can, indeed, claim you are in default for some mortgages (by their definition of default) and demand your LVR be returned to a level *they* consider appropriate. You can fix your blog's error by adding that regulated mortgages are safe, but un-regulated mortgages may be under threat of this bank action. (As bears have pointed out previously) 4. Comment by Shadow, 9 Feb 2012, 10:50 PM The blog already says that. 5. Comment by Shadow, 15 Sep 2012, 08:05 PM Readers may also be interested in this discussion I had with Treasury on the matter... Quote: Hi, I have a question about residential mortgages and the NCCP Act. I'm trying to determine exactly what protection a borrower has from a bank taking foreclosure action in an instance where the borrower continued to make all payments on time and adhered to all other provisions of the mortgage contract. My specific question is this... Do lenders have the ability to foreclose, force the sale of, repossess, call in, demand a loan 'top up', 'margin call' or otherwise take action against a borrower simply because general house prices have fallen? If the mortgage contract includes a clause stating that a default occurs when the lender is not 'reasonably satisfied' with the value of the property, could the lender use this clause in the event of a general property crash to declare that the borrower has defaulted? Would the NCCP permit the lender to take action against the borrower in such a case? For example, after taking out a mortgage, property values in the area fall to a point where the value of the property might be less than the originally agreed LVR, or fall to some other point where the lender is not 'satisfied' with the valuation. Does the lender have the right to then revalue the property, declare that the borrower has defaulted, and take action against the borrower? In other words, the borrower is keeping up with their repayments, has not breached any other conditions of the contract, and the only issue is that the bank decides it is no longer 'satisfied' with the value of the property because house prices happen to have fallen. Is the borrower protected by the NCCP? Thanks for your advice in this matter. Regards. xxxx xxxxxxxxx Treasury response... Quote: Dear Mr xxxxxxxxx Thank you for your inquiry. We understand that some lenders will require the borrower to reduce their liability to a specified amount to reduce their risk exposure where property values fall. However, this is restricted to lines of credit or interest only loans where the principal is not required to be reduced until the end of the contract. We are not aware of any normal ‘principal and interest’ home loans where the lender has the right to sell a property simply because property values fall. However, a provision of this type, if included, could infringe the unfair contracts terms legislation in the Australian Consumer Law. We trust that this information is of assistance to you. Consumer Credit Unit Retail Investor Division The Treasury, Langton Crescent, Parkes ACT 2600 Anyone who wishes to verify this response can contact Treasury themselves. The email address I used was ConsumerCredit@TREASURY.GOV.AU 6. Comment by Andrew Judd, 1 Feb 2013, 07:22 PM If you have a loan in the name of a trust does that mean it is not loaned to a natural person? 7. Comment by Shadow, 20 Feb 2013, 09:05 AM The NCCP Act does cover normal property investor loans... http://www.asic.gov.au/asic/asic.nsf/byheadline/Does+the+new+credit+regime+apply%3F Quote: Investment lending for residential property With the new coverage of investment lending for residential property, are loans to property developers caught? Most property development is done through companies. Loans to companies are not subject to the new credit regime. Only loans to natural persons and strata corporations are caught. If the loan is to a natural person, and the credit is provided wholly or predominantly to purchase, renovate or improve residential property for investment purposes, then the loan is regulated under the National Credit Act, and the credit provider needs to be registered and licensed. ‘Residential property’ is defined in the National Credit Act and includes land on which a dwelling is or will be affixed predominantly for residential purposes. Therefore, a loan to a natural person to buy land and build residential dwellings on it will generally be caught. This is true even if that person borrows on a number of occasions to develop a number of properties. ============================== Australia shares down as Greece fears, pre-earnings caution weigh Mon, Feb 09 21:22 PM EST * Greek debt negotiations causing jitters * Investors cashing profits after record run * Caution ahead of reporting season (Adds analysis, quotes, stocks on the move) SYDNEY/WELLINGTON, Feb 10 (Reuters) - Australian shares fell for a second day on Tuesday, as concerns about Greek debt negotiations gave investors good reason to cut back on exposure after a run of gains stretching over two weeks. Lacklustre domestic business confidence data added to the cautious tone ahead of the domestic earnings season which is expected to show the impact of a collapse in commodities prices in the past six months. "It's getting to that phase that markets generally get to after a big run where investors ask themselves 'should I be buying at these levels?" said IG markets strategist Stan Shamu. "There's a bit of risk coming on board with Greece issues dominating, and we've got some big earnings coming up." The likelihood of a "Grexit" from the euro zone has increased after a new Greek government ruled out extending the country's bailout deal and said some reforms imposed by lenders will be reversed. The European Commission warned Greece it should not expect unconditional cooperation. The S&P/ASX 200 index fell 14.9 points or 0.3 percent to 5800.0 by 0141 GMT, extending the previous day's decline which followed a record-matching 12 straight winning sessions. Financial stocks, which posted steady gains throughout the prior two-week rally, fell the most on Tuesday. Commonwealth Bank of Australia and Westpac Banking Corp fell 0.6 percent each, while National Australia Bank dipped 0.7 percent. Insurers fared worse; QBE fell 1 percent and AMP dropped 0.8 percent. Energy stocks skidded as a bounce in the oil price overnight failed to ignite hopes it will stage a full-blown recovery. Woodside Petroleum dropped 1.9 percent and Oil Search fell 0.7 percent. In the broader resources sector, BHP Billiton and Rio Tinto gained about half of one percent after commodities rose. Mining services firm Bradken, which recently had a takeover approach terminated because of concerns about industry uncertainty, slumped 23 percent, the biggest fall on the market, after it reported a half-year loss. New Zealand stocks were firmer with the benchmark NZX-50 index 0.2 percent higher at 5781.03. Casino operator Skycity reclaimed some of the previous day's losses, rising 1.3 percent, as the government indicated it might fund cost overruns for a proposed convention centre project. The No. 2 stock by capitalisation, telecommunications company Spark, was up 0.9 percent while Auckland International Airport was up 1.6 percent. Defensives/banks/miners/ U.S. Stocks on the move New Zealand's benchmark NZX 50 index xx percent or xx points to xx. (Reporting by Byron Kaye and Gyles Beckford; Editing by Shri Navaratnam) ===================== Bradken shares down 23.5% AAP February 10, 2015 10:29AM Share Save this story Ads By Google Watch Full EpisodesTurn Your Computer into a TV! Watch Full TV Episodes w Free App www.televisionfanatic.com BRADKEN'S shares have plummeted more than 23 per cent after posting a heavy loss and not paying a dividend. THE earthmoving and mining equipment group's stock had plummeted 74 cents, or 23.5 per cent, to $2.41 by 1030 AEDT. However, Bradken insisted a costly restructure would position it for the long term after its swing to a heavy first half loss. The earthmoving and mining equipment group posted a $92.6 million first half loss as the downturn in mining investment weighed on it, and announced it would not pay an interim dividend. Chief executive Brian Hodges said Bradken was expecting a slight increase in overall sales revenue in the second half with an incremental improvement in margins. Improving mine production volumes and market share gains in its some of the mining equipment it sells, such as ground engaging tools, crawler systems and mineral processing, should also underpin strong second half sales, he said. However, first half sales revenue had fallen 12 per cent to $495.4 million as the slump in commodity prices had led to a fall in demand for Bradken's mining equipment, the company said on Tuesday. Net debt also jumped $65 million to $434 million, with more than $200 million maturing in 2017. The company said it was on target to reduce overhead costs by $21 million this year, increasing to $33 million in 2016. "Management's efforts to rebase the cost structure and maintain competitiveness of the business for long-term growth are well advanced, with direct costs reduced in line with lower sales resulting in margins being maintained," it said. Restructuring costs and impairment charges weighed heavily on the result and when those costs were excluded, the underlying profit was down 64 per cent to $13.8 million. Takeover talks between Bradken and private equity groups Pacific Equity Partners and Bain Capital Asia collapsed in January, with banks unwilling to finance a deal that valued the company at $872 million. RESTRUCTURE AND WRITE-DOWNS HURT BRADKEN * Half year net loss of $92.6m, compared to $38.1m net profit in 2013/14 * Revenue of $495.4m, down 12.1 pct from $563.6m * No interim dividend, compared with 15 cents a share, previously. ================== Should I buy before I sell? Caroline James by Caroline James 04 Aug 2014 It’s a question most homeowners will have lost sleep over: do I sell my existing home before buying its successor, or do I buy my next home and then sell? Almost every home buyer will need or want to move location, upsize or downsize at some point. So how do I decide if I should buy or sell first? buy_or_sell_first_main_new Ask yourself this We asked the experts for their top three questions to ask when making the huge decision. 1. Do I eat risk for breakfast? Miriam Sandkuhler, Accredited Property Investment Advisor and Buyer Advocate, strongly advises starting with the question: “what is my risk comfort zone?” “Working out if you should buy or sell first totally comes down to your own risk profile and risk management,” says the Founder of Property Mavens. “If someone has a high risk threshold, buying first works best, particularly in a rising market and if you can negotiate a long settlement. “ If you have a high risk threshold, buying first works best, particularly in a rising market. “If you are someone who is risk adverse, selling first will suit you better as, to a degree, there is lower financial risk because you know exactly what you have to spend.” Read more: 6 property settlement tips for home buyers 2. Why are you buying and selling? Are you trading homes to be near ageing parents – or grandchildren – sooner rather than later? If personal circumstances are pressing, it may be advisable to find a suitable property in a target area and buy it before selling your home. Explore suburbs around Australia Sandkuhler says supply and demand means that, in a tightly held area, you may have to wait many months to find another property. “Consider your individual reasons for buying and selling, as this impacts the best order to buy and sell.” Buy_or_sell_first 3. Is the tide rising or falling? It can also be helpful if homeowners can access both their buying and selling markets’ cycles. “If the market is hot and property prices are rising, you can have a little more confidence to buy first knowing your property is likely to sell pretty easily,” says Sydney-based Mike Mortlock, Director of MCG Quantity Surveyors. “ Homeowners can make the most of both the buying and selling market cycles. “If the market is falling and time on market statistics are painting a poor picture, you’d be less likely to sell your property in the short timeframe required.” Read more: How to prepare your house for an open inspection Pros & cons of selling before buying Wally David, Certified Financial Planner from financial website The Smart Money, says he usually advises his clients not to sign a contract to buy another home until a sale is secured on a current home “regardless of how marketable you think your current home may be”. “I have witnessed this a few times and it can get ugly, causing unnecessary stress on those involved,” David says. Tips on selling your house “It may necessitate the need to obtain bridging finance or the selling of other assets, which complicates things even further and can become very expensive. “I do believe that for most people selling first is the best strategy for reducing stress and cost in the long run.” buy_or_sell_first_1 Potential pros include: •If you can negotiate a delayed settlement it can give you time to buy another property and potentially move into the new place before settling your original property. •There’s less pressure to achieve the sale before a certain deadline. •It stops potential buyers trying to cash in on the fact that you have already bought and really need to sell. Potential cons include: •If you’re too picky, nothing suitable is on the market or you simply miss out on a few properties, you could end up having to move out with nowhere to go. You can always rent short term, but there’s the added expense and hassle of having to move twice. •Prices might go up after you sell and you might be priced out of the market, or not able to find the dream home for the right price. •You’re at the mercy of what’s on the market at that time. Read more: 5 crack negotiation tactics when buying a property Pros & cons of buying before selling Potential pros include: •The possibility of negotiating a conditional offer subject to the sale of your own property. •Not being bound by any financial pressure to commit until you find a property that ticks every box. •In a rising market you can potentially get more for your money, and make more from your subsequent home sale. Potential cons include: •The extra cost and stress of bridging finance when you have to finance two mortgages at once. •Conditional offers can turn off vendors and make them unlikely to negotiate on price. •You might need to make a higher offer to convince an owner to hold the property while you sort out your circumstances. ================= 5 crack negotiation tactics when buying a property Caroline James by Caroline James 13 Jun 2014 Scoring $20 off the price of a toaster is usually achieved by asking ‘is this your best price’? Simple. Sweet. Pluck required? Minimal. But how do you crunch a deal when negotiating to buy a property worth hundreds of thousands of dollars? What tactics do the experts use to secure the keenest prices? 1. Find a deal sweetener When Sydney investor Brad Callaughan is serious about buying a property, he spends serious time discovering what it is the vendor really wants. It may be a short settlement because of an imminent divorce. Or perhaps they have a soft spot for buyers offering unconditional contracts? “Find out what the other person wants because the key to negotiations is making them a ‘win win’ proposition,” says Callaughan, the director of Callaughan Partners, accountants, business advisors and financial planners. house 2. Cash trumps all It’s old school and it works. Make a cash offer when haggling a home price discount. It doesn’t mean you need to carry wads in a backpack to every home auction and open house. “ Make a cash offer when haggling a home price discount. Just get your finances sorted and arrange easy access to these funds before talking turkey. It means you can pay that all-important contract deposit on the spot … a killer tactic when deal-making. Read more: 5 tips for buying a home 3. Butter up the selling agent Callaughan also recommends giving the vendor’s agent an incentive. “This doesn’t mean you become unethical and make the agent act unethically but when I buy a flipper property (one he intends turning over quickly), I offer the agent the resale if they are to help me in my negotiation. “Suddenly they have the chance of making two commissions on the one property, which is a huge incentive.” 4. Go in hard and fast In a red hot market, don’t risk losing out by making low-ball offers. It wastes time and gives rival buyers time to swoop. If you have done your research and know the home’s market value, make your first offer your biggest, advises buyer’s advocate Catherine Bakos of Empower Wealth. “ Do your research, know the home’s value and make your first offer your biggest. In a rising market, Bakos says she sometimes uses “knockout blows” to stun vendors and secure sales before the market and prices have had time to catch up. Read more: How to buy a house that isn’t on the market house NSW 5. Keep budget close to your chest “The first person to name a price loses,” Callaughan says. Always draw out the other party before you give any indications of your budget or valuation of the property. The less the other party knows about the depth of your pockets, the better. “In negotiations, if you are the first person to show your hand, you are most likely going to end up losing.” Read more: The pros & cons of buying via ballot ===================== Who’s been sleeping in your bed? Holly Jones by Holly Jones 15 May 2014 Finding out more about where you live is an intriguing idea for many. People are fascinated about what occurred in the house they own, and the information is more accessible than you might think. Australia holds public records dating back hundreds of years and these records give an insight into the history of our homes. From the towns we live in, the suburbs around us, the properties themselves, and even what was there before the properties were built. I spoke to Charlie Farrugia, Senior Collections Advisor at the Public Record Office of Victoria about the purpose of public records and how we can make use of them to uncover some exciting facts about our homes. public records photo What is the public record office? Charlie: The Public Record Office of Victoria holds the archives of the State Government of Victoria. To date, there are almost 100kms of records, ranging from the mid 1830s to today. “ To date, there are almost 100kms of records, ranging from the mid 1830s to today. Each state has it’s own office and people can speak to their councils for some guidance. Find your state office What’s the purpose of the public record office? Charlie: Our aim is to preserve and care for the records of the state government and provide those records to the public. Because we are the archives of the state government we have a role in ensuing accountability, as we’re identifying records to give an accurate view of what happened and what didn’t. How does property come into this? Charlie: Property research has exploded in popularity with shows like the ABC’s Who’s Been Sleeping in My House?, prompting people to uncover the hidden histories of their homes. “ Property research has exploded in popularity. We have various documents on file which can help people do this including drawings of houses and plans, Parish and township plans, land records, rate books and valuation records. How can I get started looking into my property? Charlie: The more information you have to start your search, the better. Bring any documents which make reference to the property and its surrounds. Government documents often have information written on them which mean something to an archivist – they can be very insightful. “ Documents you have already which make reference to the property and its surrounds are a good place to start. When do people tend to be interested in finding out more about their property? Charlie: People look into their houses once they’ve bought them. The curiosity is there for owners: when was the house built? What was there before it? Often people find things in their back yard, old foundations for instance, and it sparks intrigue. Read more: Couple strike it rich in the backyard What are the main things property owners look for? Charlie: People are genuinely curious about what their home was before it was a house, as many homes in Australia started off as something quite different. Even in reality TV this is apparent, look at The Block, they’ve turned hotels into modern apartments and an old theatre into townhouses. Those buildings would have needed government approval to be transformed and we’d the original building drawings on file. “ People buy houses to be homes, but many buildings originally had a different function. retreat in Who can access the records? Charlie: Anyone can come in and request to see any record which is public. Not everything has had a record created of course, and some records have been restricted, such as personal or private records, or wardship records. Criminal trial briefs are often restricted or closed because if they were accessed by public they could be used to endanger public safety. Common questions •What’s the history of the house I bought? •What planning permissions were in place/are still in place? •What were the development rules of my area? When did/did they change? •How has my area developed over time? •What’s happened to my area in the last 10/100 years? •Who has owned my house in the past? Find out more If you’re interested in learning more about public records contact your state office and ask for advice on when you can visit. Staff will advise on what access you can have, as each state varies. State offices ACT: Archives ACT NSW: State Records NSW NT: Northern Territory Archives Service QLD: Queensland State Archives SA: State Records of South Australia TAS: Tasmanian Archive and Heritage Office WA: State Records Office WA ======= Hottest markets in the country: Dec 2014 Nadine Ahfat by Nadine Ahfat 13 Dec 2014  Buying, Investing, Property news & information, Selling, Adelaide, Australian Capital Territory, Brisbane, Canberra, Darwin, Melbourne, New South Wales, Northern Territory, Perth, Queensland, South Australia, Tasmania, Victoria, Western Australia Share  Share on Facebook 630  Tweet this post 37  Pin this post 0  Share this post 0 Our last Top Sellers’ Markets report for 2014 reveals South Australians have the most sought after property in the nation, with suburbs in that state dominating the most searched buyer locations on realestate.com.au. Compared to last quarter, South Australia has surpassed its counterpart New South Wales, with four SA suburbs taking top honours – popular Parkside, Unley, Norwood and Unley Park. The number of New South Wales suburbs in the national top 10 has dropped this quarter from six to three. Two Victorian suburbs and a Queensland suburb complete the Australia-wide list for December. Did your suburb make the list? The realestate.com.au Top Sellers’ Markets report is released every quarter, ranking suburbs according to supply and demand. If your suburb consistently features on the Top Sellers’ Markets list it means buyers are determined to find a property in your area. This is great news if you’re considering selling, and those hoping to buy should be prepared for high competition. Top 10 Australian suburbs with the most people searching per listing nationwide: 1.Parkside (SA) 2.Unley (SA) 3.Engadine (NSW) 4.Norwood (SA) 5.Albert Park (VIC) 6.Unley Park (SA) 7.Cherrybrook (NSW) 8.Holland Park (QLD) 9.Bella Vista (NSW) 10.Ringwood North (VIC) John Williams, Principal at Harcourt Brock Williams says SA locals are house proud and the character homes that define Parkside hold a unique appeal. “South Australians love their character homes and there are plenty in Parkside which are really affordable,” he says. ‘Along with compact villas and cottages, the character style home is quite unique to South Australia. You don’t really see this in other states which is why properties in South Australia are consistently in high demand.” “ The character style home is quite unique to South Australia. “As soon as a property goes up for sale in Parkside, it sells quickly,” says Williams. “This inner south pocket has a real community atmosphere which people love. People are not just buying the house, they’re buying the lifestyle.” Read more: Discover how much your suburb is worth See where people are looking in each state: NSW QLD NT WA SA VIC ACT TAS New South Wales The Shire’s Engadine area is the most searched for suburb by buyers over the past three months, showing interest in areas close to the beach. Engadine Dec Most searched New South Wales suburbs: 1.Engadine 2.Cherrybrook 3.Bella Vista 4.St Clair 5. South Penrith 6. Menai 7.Glenhaven 8.Frenchs Forest 9.Cammeray 10.Winston Hills Geoff Luby from Ray White says Engadine is coming of age into an established market, driving huge demand. “Properties in the Shire are always popular,” he says. “But the prices of property east of the Shire have gone up so people are searching for more affordable areas within this popular spot. “Engadine offers the same lifestyle opportunities as the eastern parts of the Shire and is also close to the beach while surrounded by national parklands.” “ Properties in the Shire are always popular. Engadine attracts a large family demographic who find the close proximity to shopping strips, local parks and beaches suits their lifestyle needs. “Engadine is a short 15 minute drive to Stanwell Park and the popular Cronulla beach, with Port Hacking river providing excellent fishing opportunities for boating enthusiasts,” says Luby. “This close proximity to the local attractions has increased the value of this area and people are eager to buy.” Queensland For the third consecutive time this year, south eastern jewel Holland Park has had the most interest from buyers. Holland Park Dec Most searched Queensland suburbs: 1.Holland Park 2.Stafford 3.Stafford Heights 4.Newmarket 5.Spring Hill 6.Paddington 7.Wilston 8.Camp Hill 9.Red Hill 10.Grange Andrew Oostenbrink from Ray White Holland Park recently sold two properties in this hot spot within 48 hours. “The interest in Holland Park is consistent as people know the value of this area and that capital growth is strong,” he tells us. “Holland Park is really a community hub that attracts the younger demographic moving in. It’s close to trendy shops, cafes and transport links.” “ Holland Park is a community hub that attracts the younger demographic moving in. “Properties in Holland Park offer a lot more value for money and with the new busway, people can get to the city much quicker. The busway also reduces the noise coming from the freeway, increasing the value of properties in Holland Park,” explains Oostenbrink. Northern Territory Preference for suburbs closer to the city has created high demand for Anula, catapulting it to the top of the list. Anula Dec Most searched Northern Territory suburbs: 1. Anula 2.Howard Springs 3.Nightcliff 4.Rapid Creek 5.Leanyer 6.Fannie Bay 7.Gunn 8.Karama 9.Farrar 10.Millner Chris Deutrom, Principal at Elders Real Estate Darwin, says that there has been a spike in interest for northern suburbs because of the large portion of young families looking in this area. “Anula is a great place for young families looking for affordable established housing with larger blocks of land. “I raised my family in this leafy suburb and loved the numerous parklands surrounding the area – perfect for picnics or spending a day out with the kids.” “ Anula is great for young families looking for affordable established housing. “Anula is a short 15 minute drive from the city and home to Anula Primary School which has a great reputation in the Territory,” adds Mr Deutrom. With the older generation moving out, properties are becoming available in Anula and demand is high. West Australia For the first time in Top Sellers’ Markets, inner western suburb Shenton Park has been announced as the most searched for suburb in West Australia. Shenton Park Dec Most searched West Australian suburbs: 1.Shenton Park 2.Nedlands 3.Mount Hawthorn 4.Floreat 5.Bull Creek 6.Melville 7.Carine 8.Peppermint Grove 9.Booragoon 10.Leederville Kirk Bellerby, Principal at Bellcourt Property understands the Shenton Park market well – both his business and home is based in this popular spot. “I first bought a house as an investment property in Shenton Park as I saw the value and growth potential of this leafy area,” he says. “The key factor driving this growth is the large number of amenities in Shenton Park such as the hospital, post office and newsagent, as well as having great transport links and the best restaurants and schools.” Shenton Park is also home to Lake Jualbup and close to Kings Park, which hosts the popular annual Moonlight Cinemas. “Not many suburbs have a private lake to themselves which is really enjoyed by local,” adds Bellerby. “During the summer, they will often be concerts by the lake which draws in a community like atmosphere. It’s a fantastic pocket.” South Australia It seems everyone wants to live in Parkside. Demonstrating its strong performance, it is the most searched for suburb once again both in South Australia, and across the entire country. Parkside Dec2 Most searched South Australian suburbs: 1.Parkside 2.Unley 3.Norwood 4.Unley Park 5.St Peters 6.Walkerville 7.Torrens Park 8.Burnside 9.Brighton 10.Henley Beach John Williams, Principal at Harcourt Brock Williams says that along with its quintessential houses, Parkside boasts fantastic proximity to cosmopolitan shopping strips, a key selling point for people hoping to buy. He says interested buyers should get in quickly if they see a Parkside listing. “Parkside is a tightly held area. People tend to stay after buying a home here and consider renovating down the track if they start a family, as it means they won’t have to move,” he explains. “ Parkside is a tightly held area. Victoria Highlighting the popularity of inner city Melbourne, Albert Park shows the most interest from buyers this quarter. Albert Park Dec Most searched Victorian suburbs: 1.Albert Park 2.Ringwood North 3.East Melbourne 4.Montmorency 5.Carlton North 6.Montrose 7.Belgrave 8.Park Orchards 9.Armadale 10.Warrandyte Due to the high demand for outer suburb properties in Melbourne in 2013, interested buyers have nosed prices up in these areas. This shift in interest is highlighted by the increase of inner city suburbs featured in this quarter’s data, as those areas have become competitively affordable once again. Greg Hocking, Director at Greg Hocking Real Estate Albert Park says the continued interest in this area is from buyers hoping to come across listings that don’t come on the market very often. “Albert Park is a tightly held area so when a listing does come up, property seekers pounce on it often after months of searching in this high demand area,” he says. “With acres of parklands, the famous Albert Park Lake within walking distance and the beach outside your front door, the unique vibe in Albert Park is very hard to replicate.” “ The unique vibe in Albert Park is very hard to replicate. The area is surrounded by main roads and has great transport links, serviced by three tram routes. “The icing on the cake though is the new Albert Park Secondary College which is now highly prized and receiving a large number of enrolments each year,” says Hocking. Australian Capital Territory Buyers continue to show interest in Belconnen, making it the most searched for suburb for the second time in a row in the Australian Capital Territory. Belconnen Dec Most searched Australian Capital Territory suburbs: 1.Belconnen 2.Griffith 3.Bonner 4.O’Connor 5.Watson 6.Macgregor 7.Bruce 8.Nicholls 9.Franklin 10.Ngunnawal Ben Faulks, Selling Principal at Ray White Belconnen says the suburb’s affordability and infrastructure are the key factors luring property seekers. “There’s a lot of value in this area which means you can buy a decent sized block of land for a great price,” he says. “There’s also a large number of new high rise apartments being built here, creating a lot of opportunities for people hoping to move to this area.” “ You can buy a decent sized block of land for a great price. “Belconnen is one of two areas that have a public and private hospital which provides more of a choice for young families. Being close to the University of Canberra, there is also a lot more employment opportunities in this area.” Tasmania Inner city South Hobart has taken the top spot for the second time in a row. South Hobart Dec Most searched Tasmanian suburbs: 1.South Hobart 2.Hobart 3.West Hobart 4.Lindisfarne 5.Battery Point 6.Bellerive 7.New Town 8.Taroona 9.Sandy Bay 10.East Launceston South Hobart’s affordability makes it an enduring hot spot, close enough to other desirable areas to reap the overflow benefits. “Buyers are finding there’s a lot of competition for properties in Sandy Bay and so are looking at neighbouring suburbs such as South Hobart which is increasing the demand for this area,” says Mathew Chugg from Roberts Real Estate. “Once people move here they don’t want to leave because of the family friendly and community atmosphere. “There is a multicultural mix of people that live here which shows the broad demographic in this area. Locals want to live here along with a large portion of buyers across Australia,”he adds. South Hobart offers views of popular Mount Wellington and is home to one of the oldest breweries in Australia – Cascade Brewery. “ Locals want to live here along with a large portion of buyers across Australia. “Along with all the local attractions and fantastic schools, shops and cafes, South Hobart offers people a variety of properties to suit their needs. There are town houses along with more lifestyle houses suited to young families.” ==================================