Urban development in Australia comprises much less than 1 % of the land area.

Access to land at root of soaring house prices * Alan Moran * From: Herald Sun * March 04, 2011 12:00AM Posted Image Looking for land: Planning procedures are barriers to new housing development. Source: News Limited IN 2004, a report by the Commonwealth's normally reliable Productivity Commission (PC) completely misread the causes of high house prices. It failed to recognise that government planning processes had boosted house prices by starving the market of land for urban development. The PC instead blamed interest rates. Since then house prices have defied gravity even though interest rates have gone up and down. A new study by the PC into planning and zoning concludes that government regulation of land availability is the cause of Australia's high house prices. It demonstrates how planning procedures are barriers to new housing development. "Objectives overload" is how the PC describes why all Australian states suffer from excessively high house prices caused by government squeezing land supply. As well as unlocking land for housing, planning aims to promote environmental, social, safety, waste management and a host of other goals. As a result, the PC's new study shows that even after receiving in-principle approval to build, "in greenfield areas . . . as many as 10 years may pass between the time a developable parcel of land is assembled and the subdivision of that land is completed". Over the past 40 years, town planning has morphed from facilitating urban expansion into preventing it. Instead of supporting consumers' requirements by identifying what is needed in terms of trunk roads, mainline water and sewerage facilities etc, planning now seeks to cannibalise urban development in directions preferred by the planners themselves and by politicians. The result is increased costs that are paid for by new house buyers. One rationalisation for planning controls over the location of new housing is that development involves costs to governments. Nowadays, however, government costs in new urban expansions are largely confined to trunk roads and schools. These costs are dwarfed by those the new home buyer pays in land development, local roads, water and sewerage facilities, electricity and telecommunications, etc. Yet, the government costs, which frequently carry excessive charges, often dictate planning and zoning approvals. The PC demonstrates that using planning regulations to prevent "urban sprawl" is not justified for Australia. Unlike densely populated Hong Kong, one of the few jurisdictions with higher house prices than Australia, urban development in this country comprises much less than 1 per cent of the land area. Unfortunately, there are pressures to intensify "objectives overload" in the planning system. The Council of Australian Governments (COAG) with its intrinsically heavy-handed bureaucratic procedures has got involved. COAG's chief bureaucrat Terry Moran has called for "co-ordinated infrastructure, transport and land use plans, clearly identified priorities for future government investment and policy effort, and to enhanced collaboration between all three levels of government". By adding new layers of costs and delays that approach would further gum-up the process. At one time, entrepreneurs like Alan Bond simply bought scrubland close to the city, built local roads and subdivided land with little input from government. At present day prices, such ready-to-build upon blocks would cost $70,000. That's a far cry from the $200,000-plus slug for new buyers looking to build on the outskirts of Melbourne, let alone the $350,000 required for Sydney. Alan Moran is the Director, Deregulation at the Institute of Public Affairs. ======================================================== 150 years of mining to end as Rio Tinto closes Blair Athol mine in central Queensland by end of year John Mccarthy The Courier-Mail August 09, 2012 12:00AM RIO Tinto's Blair Athol mine in central Queensland will close by the end of the year. Blair Athol has had a history of stop-start mining since coal was first discovered there in 1864. Rio opened its main mine in 1984. The end came because of higher costs, the exchange rate and the "significant drop in thermal coal prices". But its end had been predicted five years ago, as the easier-to-reach coal seams began to run out. The decision follows a shutdown by BHP Billiton of one of its seven joint-venture mines in the Bowen Basin earlier this year for similar reasons. Rio said there were about 170 employees and contractors at the mine. About 30 positions will be retained after production finishes in the coal handling and preparation plant and rail load-out facilities, which will continue to be used for coal from the nearby Rio-operated Clermont Mine, as well as care and maintenance work in the lead-up to a rehabilitation program. Clermont region general manager (operations) Dawid Pretorius said the majority of employees wanted to take a redundancy. Redeployment was possible. Read more: http://www.heraldsun.com.au/news/national/years-of-mining-to-end-as-rio-tinto-closes-blair-athol-mine-in-central-queensland-by-end-of-year/story-fndo45r1-1226446255855 ================================================ strawman - a person used as a cover for some questionable activity ≡figurehead, front man, nominal head, straw man, front ↔beguiler, cheater, deceiver, trickster, slicker, cheat - someone who leads you to believe something that is not true 2. strawman - a weak or sham argument set up to be easily refuted ------------ spruik (ˈspruːɪk) vb (intr) archaic slang Austral (Of, relating to, or coming from the south.) to speak in public (used esp of a showman or salesman) ==================

NSW budget 2015: Government ‘greedy’ for not helping first home buyers

The State Government has been branded “greedy” for not sharing its bumper $7.2 billion stamp duty haul with Sydney first-home buyers, with the Premier and Treasurer labelled “out of touch”. Stamp duty revenue was $1.2 billion more than budget forecasts, and forward estimates indicate a further $32 billion will be collected over the next four years. First home buyers have once again been left out in the cold despite property being the biggest contributor to the NSW economy.” The budget also contained no new financial incentives for first-home buyers, despite a 13.1 per cent surge in Sydney property pricesover the past year. In contrast to last year’s budget, the threshold of $750,000 for the First Home Owner Grant – which only applies to new properties – was not lifted. Mr Gunning was disappointed that the first home buyer grant for existing property was not reintroduced, saying this “highlights that the Treasurer and Premier are out of touch with the market”. Treasurer Gladys Berejiklian told Domain that increasing supply would be more advantageous for first home buyers than lifting the threshold for the $15,000 grant. “The worst thing we can do is put any more heat in the market,” she said. “Our lever is supply, and that’s why we’re producing more dwellings.” Ms Berejiklian said 8000 people received the First Home Owner Grant for new properties last year – an increase of 25 per cent on the previous year. However, the Real Estate Institute’s Mr Gunning said most first home buyers were in the market for existing properties. He said the State Government had chosen to “ignore … stamp duty bracket creep, which adds thousands of dollars to property transactions”. Mr Gunning said the government was misguided in its view that a cut to stamp duty rates, which had been left untouched for 30 years, would worsen Sydney’s affordability crisis. “Lower volumes drive higher property prices, while higher volumes slow the market and improve affordability,” he said. The government should also look at creating incentives for people to relocate from Sydney to regional NSW in the form of stamp duty concessions and job creation, he said.

When is the most popular time to buy house & land?

Letter of Invitation: I would be available to answer any queries regarding best suburbs to integrate socially, just to let you know 21 suburbs of South Australia which are red-flagged by Australian banks. I am happy to provide detail answers to any questions with reference to Property Investment, Subdivision, Development, Buying/ Selling Residential, Commercial, Rural Properties and Businesses. I am available in person (Tue/Thu at 1289 South Rd, St. Marys, SA 5042 12 to 5 p.m) or on cell to answer any questions, and concerns you have to decide about your Real Estate. (Cell: 0431 138 537, Email: Saqlain@Dukesrealestate.com) Click here to invest in South Australian Residential Commercial, Rural Properties, Schools & Businesses. Alice Bradley by Alice Bradley 18 Nov 2015  Buying, Market data, Brisbane, Development, New Homes, Queensland Summer may be the silly season – a time for beaching and barbecuing – but when the New Year rolls around it’s all about fresh starts, with many using the weeks before work to get their house in order. For some, this means finding a house to get in order. January is the most popular month for searching online for house and land packages, realestate.com.au house and land data shows. In both 2013 and 2014, house and land listings on realestate.com.au received the most number of visits and enquiries compared to any other month. In January 2013, visits peaked to 396,968 for house and land listings. In 2014, they were at their highest in January again at 253,017. This year, August has been the most popular month so far, but if the pattern follows the same trajectory as past years, January 2016 looks set to be a boon for house and land developers. Brendan Gore, Managing Director and CEO of residential land developer Peet, says new year home buyers tend to be driven by a combination of mood and opportunity. “People often have more money to spend over Christmas and they start looking to the future and a new year ahead,” Gore says. “After spending time at home over the holidays, they often decide they need to freshen up their life with a new house, more space, or a different location. “They also tend to get out and about over the holidays and have more time to look at houses and explore new places. Even a summer health kick can lead them to discovering new parks and places where they would prefer to live.” All bases covered: 8 common questions when buying off-the-plan “ A summer health kick can lead buyers to discovering new places where they might prefer to live. Flagstone RiseThe land development industry runs its biggest marketing campaigns during Spring and Summer. Gore says most developers recognise the mindset of their buyers during the summer period and aim to meet the market with competitive pricing and incentives to encourage people to make a move. “Like other post-Christmas sales, some of the best opportunities of the year are offered in January and February so we, as an industry, are probably encouraging the trend.” Gore says spring is another elevated buying period, when people tend to make plans after winter. But the new year is “traditionally” the peak buying time. “People often get distracted from their house hunting in December and we see pent-up demand coming back into the market after the holidays.” “ Like other post-Christmas sales, some of the best opportunities are offered in January and February. One in six Australians are already engaged with buying a new home, data shows. The realestate.com.au House and Land Consumer Study found that 16% of Australians were either considering building a new home or already in the process of purchasing a new home. The ability to customise floorplan and other home features was the number one driver pushing home seekers to start a new build.* Summer ready – masterplanned community in SEQ Flagstone, a joint venture between Peet and superannuation fund MTAA Super, is a new town that will accommodate much of the growth from Greater Flagstone, one of the four priority development areas in Queensland. The first lots of the new part of Flagstone are due to be released in the new year to take advantage of the peak January – February selling period. “Flagstone is a long-term project but astute buyers know it’s best to get in early,” Gore says. The family-oriented community, which already has an established village of 4,000 people, will offer a range of homes in the new release, from city-style apartments to architecturally designed spaces for home-based businesses. Flagstone RiseFlagstone attracts a mix of entry level first home buyers, young working families and older couples downsizing from acreage. More than 300 hectares of the site has been set aside for parks, reserves and public open space to take advantage of the natural waterways and mountain views of its southeast Queensland location – just an hour from Brisbane’s CBD. The right estate: What to look for in house and land packages “ Astute buyers know it’s best to get in early. Peet expect to be able to deliver the first stage of a major regional recreation park adjacent to the new residential lots in time for the new year release. *The Building Journey, House & Land Consumer Research, realestate.com.au Insight Series, September 2015.

Monetary dispute: Sindh governor’s brother, sister-in-law seek protection against MQM leader

Affordable Homes in Australia Starting at $269,000 By Faraz Khan Published: September 30, 2015 S A file photo of MQM leader Rauf Siddiqui. PHOTO: EXPRESS KARACHI: The sister-in-law of Sindh governor approached the police on Monday night to register a case against a senior Muttahida Qaumi Movement (MQM) leader, Rauf Siddiqui, and his allies, seeking protection in the wake of death threats to her and her family. Dr Shehla Amir, the wife of Amirul Ibad Khan, a brother of Sindh governor Dr Ishratul Ebad Khan, submitted the application against death threats meted out to her, her family and her company’s employees by Rauf Siddiqui and his allies, identified in the application as Shaiq and Raza Abidi, following a monetary dispute. Dr Shehla Amir visited the District Central police chief DIG Feroz Shah and reported the matter to him. She also submitted an application, a copy of which is available with The Express Tribune, requesting the police to look into the matter, register an FIR and take action against the perpetrators. “Our lives are in danger,” said Amirul Ibad Khan while speaking to The Express Tribune. “This has been going on for the last five months but we took it non-seriously. We were finally compelled to approach the police after we started receiving threats.” In her application, Dr Shehla Amir stated that she and her family are Canadian citizens. In 2009, her husband decided to move back to Pakistan and established an alternate energy company, titled RAAS Systems Enterprises, in Karachi. “We introduced renewable energy technology in Pakistan to combat the energy crisis. We not only brought the advance technology in Pakistan, but also invested in the business. This is not only a social service but also a step towards the future,” the application stated. RAAS Systems Inc was called by Rauf Siddiqui in December 2011 to carry out some projects in Karachi, including solar outdoor lights at Nazeer Hussain University, Federal B Area, solar street lights at Afza Altaf Flyover, Habib Bank Chowrangi, SITE and a home-based generation system at Rauf Siddiqui’s residence,” stated the application. It further stated that an agreement was signed between FSCL private limited and RAAS Systems Inc. before executing the project at Afza Altaf Flyover in which all terms and conditions were mentioned. “We have completed the project within the specified period of time under immense pressure and persuasion of the Minister Office, SITE Limited and Consultant Office, International Design Group (IDG) Private Limited. During the execution of the project, FSCL Private Limited partially stopped the project due to some unknown reasons,” she said in the application. “There is an outstanding amount of 700,000 Canadian dollars in the project of Afza Altaf Flyover. This outstanding amount includes all the demurrages, future business opportunities and currency exchange rate difference,” she said. “We were told that this amount was kept aside as bhatta (extortion) for the political party and had been transferred to the party’s high command. Shaiq and Raza told us that their company, FSCL Private Limited, is used by this political party for funds collection,” the application stated. She further stated in the application that the company had suffered a lot due to the non-payment of the outstanding amount was on the verge of bankruptcy. It seems that the political victimisation is being carried out with me and my family. “Rauf Siddiqui is pressurising my husband to forego the money we are rightfully owed. We are being harassed by some unknown persons to keep silent,” she stated in the application. On the other hand, no case has been registered. DSP Zahid Hussain said that the police was reviewing the application and will also record the statements of the persons who are accused in the application. For his part, Siddiqui denied that he had threatened the couple and said he will take them to court for making false charges. “I have never met the governor’s brother or his wife. They are fraudsters and are falsely accusing me of threatening them.” Siddiqui sees this as an attempt to malign him as well as the university. “These people are lying and just blackmailing us. They took the money from us but never completed the work.” Meanwhile, the director of Friends Construction Syndicate Limited (FSCL), Raza Ali Abidi, refuted the allegations leveled against him and his company, claiming that the governor’s brothers were trying to blackmail them into extorting the funds. He added that they will initiate civil and criminal proceedings against the couple in both Pakistan and Canada. With additional reporting by Rabia Ali Published in The Express Tribune, September 30th, 2015.

NAB names top postcodes at risk of mortgage default

Story image for nab-names-top-postcodes-at-risk-of-mortgage-default-20150928-gjwb6x from The Australian Financial Review The Australian Financial Review-8 minutes ago A range of Sydney suburbs are in the risky category including Glebe and Chippendale, to Campsie, Kingsgrove, Chatswood, Baulkham National Australia Bank has identified 34 Sydney postcodes where it believes there may be rising risk in the mortgage market, and it will require home buyers to stump up a deposit of at least 20 per cent. The lender has also red-flagged 22 post codes in Western Australia and 11 post codes in Queensland as even higher-risk areas, where it says there has been a "significant deterioration in credit risk." In a note received by mortgage brokers last week, NAB listed more than 80 "restricted postcodes" across the country where it is capping the percentage of a property's purchase price it will lend, known as a loan-to-valuation ratio. Within this group, NAB identified 40 highest-risk postcodes, which were dominated by mining areas in WA and Queensland. Known as "Group A restricted postcodes" these are "areas where significant deterioration in credit risk has been observed," the bank said. In these areas, NAB said it had introduced a cap of 70 per cent on loan-to-valuation ratios for new lending - meaning new borrowers will need a deposit of at least 30 per cent. NAB also included a second group of "Group B" postcodes where it is eyeing future risks and capping LVRs for new lending at 80 per cent. The second group of postcodes takes in "areas which are exhibiting characteristics which may indicate future deterioration in credit risk," the bank said. Sydney highest risk This group was dominated by Sydney suburbs, which accounted for 34 of the 43 postcodes listed in this category. It included a range of suburbs from across city, ranging from inner-city areas such as Glebe and Chippendale, to Campsie, Kingsgrove, Chatswood, Baulkham Hills and Cabramatta. Five Melbourne suburbs were also included on the list of "Group B" areas, including the Melbourne CBD, St Kilda Road Central and Abbotsford. NAB will also cap LVRs at 80 per cent in central business districts of Adelaide, Perth and Brisbane, the note says. "We continually review our risk settings to ensure we're lending responsibly and sustainably. This is a very normal practice for any bank," a NAB spokeswoman said. "We recognise that in any property market, no two suburbs are the same and these strategies take into account a range of economic factors and provide an extra level of caution to our risk settings." While banks commonly take a more cautious approach to mining and one-industry towns, brokers say it is unusual for a bank to adopt such a cautious approach towards suburbs in Sydney. It comes after NAB chief risk officer last month David Gall said the bank had developed a list of 40 hostpots, but it did not identify the areas. NAB said the postcode policy would apply to all new loan applications received that had been received after September 18. The managing director of mortgage broker Homeloanexperts.com.au, Otto Dargan, said the policy may affect first home buyers especially, as they typically had smaller deposits. With Sydney dwelling prices up 17.6 per cent in the last year, Mr Dargan also questioned whether the policy was a vote of no confidence in parts of Sydney. "It could be NAB did this for internal reasons, such as being overexposed in those suburbs. Or it could be vote of no confidence in large parts of the Sydney property market," he said. Read more: http://www.afr.com/business/banking-and-finance/nab-names-top-postcodes-at-risk-of-mortgage-default-20150928-gjwb6x#ixzz3n0YlDlK3 Follow us: @FinancialReview on Twitter | financialreview on Facebook Ask for property listings and purchasing risk free properties in South Australia. ============================= Almost one-quarter of the top 100 postcodes set for mortgage default are in Tasmania. Glenn Hunt by Mark Ludlow It's not just households in Western Sydney and the outer suburbs of Melbourne and Brisbane who are feeling the pressure of paying their monthly mortgage. A compilation of the top 100 postcodes most at risk of mortgage default by consultancy firm Digital Finance Analytics found a wide geographic spread of suburbs across the country where people could face financial collapse when interest rates start to rise. The outer suburbs of Canberra, southern Tasmania, Darwin and southern Gippsland in Victoria are some of the regional areas that have been hit by mix of industrial closure, high unemployment and low wages growth, which leaves resident vulnerable to financial collapse. Digital Finance Analytics principal Martin North said residents of Western Sydney were used to flying close to the wind when it came to household finances. "There are clearly some western Sydney suburbs and inner-Sydney in the top 200 or 300 postcodes but this is about the probability of default," Mr North told The Australian Financial Review. "The probability of default is a complex matrix. It's not just the lower socio-economic areas [like Western Sydney] because they don't have big loans and already have more conservative loan criterias." Mr North said the postcodes where households are at risk are quite often in regional areas with increasing unemployment – and where they may struggle to find another job. "The most difficult thing for a mortgage holder is suddenly losing your job because income goes from a certain level to a lower level and it's quite hard to manage," he said. "Events across Australia impacting on employment are probably the best leading indicator of the probability of default." Many of those in regional areas are also geographically isolated if they lose their jobs – and don't have the same employment alternatives that may be on offer for those living in bigger cities such as Sydney, Melbourne and Brisbane. Two per cent increase poses high risk In a breakdown of the top 100 postcodes, almost a quarter were in Tasmania (23), followed by Victoria (19), NSW (18), Queensland (16), South Australia (14) and Western Australia (5). The closure of manufacturing industries in northern Adelaide, the mining downturn in Western Australia, Queensland and in NSW's Hunter Valley and the public service heartland of Canberra are all mortgage stress hotspots, according to the modelling. There was also an intergenerational element with most of the households at risk of default including those under 35-years-old who have been lured by record low interest rates. "My view is these are households that are maxed-up because of the debt they've got and with current low interest rates they are just getting by," Mr North said. "But if interest rates go up this is where you'll see the first impact. If interest rates are 2 per cent higher it would create significant pain for households. "And the risks seem to be higher amongst younger households. I think people have been lured into the market probably sooner than they should have by lower interest rates and rising property values." The Canberra postcodes of 2902 (Kambah), 2900 (Tuggeranong, Greenway) and 2903 (Oxley, Wanniassa) top the mortgage stress list, with Tasmanian postcodes in the state's north and south rounding out the top 10. Queensland's mining belt of Mackay (postcode 4721), Brisbane's outer suburbs (4131), and the outer-suburbs of Melbourne (Essendon, Tullamarine) as well as Hunter Valley's 2343 scrape into the top 50. The top 100 postcodes are rounded out by more mining towns (Fitzroy and Blackwater in Queensland), the suburban battlers in south-east Queensland's Logan (4128), NSW's Macquarie Fields (2564) and The Ponds (2769). The typical assumptions about mortgage stress is where more than 30 per cent of household income is spent on home repayments. But Mr North said this was too simplistic. He also overlays industry employment data as well as information from credit rating agencies about actual defaults. The National Australia Bank has red-flagged 40 postcodes across the country where business and personal loans are at a higher risk of default, especially when mixed with the stressful combination of rising interest rates and higher unemployment. In its 40 hotspots, NAB is conducting a more stringent assessment of loan applications, including increasing the amount of equity that borrowers require. Reserve Bank of Australia assistant governor Christopher Kent last week said the central bank predicted unemployment would remain high until 2017. ========================== AS HOUSE prices rise globally, in Britain they are soaring. In the past 20 years they have increased by more than in any other country in the G7 (see chart 1); by some measures British property is now the most expensive in the world, save in Monaco. It is particularly dear in the south-east, where about one-quarter of the population lives. According to Rightmove, a property website, at today’s rate of appreciation the average London property will cost £1m ($1.5m) by 2020. In this section Through the roof Build up The China syndrome Back to the comfort zone A transfusion, not a leech Doctors without borders Foundering Down by the jetty The Osborne Doctrine Reprints The booming market weighs heavily on the rest of the economy. People priced out of the capital take jobs in less productive places or waste time on marathon commutes. Young Britons have piled on mortgage debt—those born in 1981 have one-half more of it than those born in 1961 did at the same age—making them vulnerable to rises in interest rates, which are coming. Some will retire before they pay it off. Who is to blame? One oft-cited culprit is rich foreign buyers, who are said to see London property as a tax-efficient investment, or even a way to launder ill-gotten gains. Having bought plum properties, they often leave them empty. Transparency International (TI), a pressure group, identified 36,342 London properties held by offshore companies. Polls by YouGov show that the most popular explanation for high prices is “rich people from overseas buying top-end London property”. The argument does not stand up. For one, the number of vacant houses in England has fallen, from 711,000 in 2004 to 610,000 in 2014. And foreign ownership of houses is rare beyond a tiny corner of the capital. TI says that in Westminster one-tenth of all property is owned by firms in tax havens. But outside the centre things look different; the rate is just 1.3% in posh Islington, for instance, and beyond London it is even lower. Explore and compare house prices in 13 British regions over time with our interactive house-price tool Demand from within Britain exerts a much bigger effect. In the past 20 years the population has grown by 11%, twice the average in the European Union. As in other countries, people are marrying later and divorcing more readily than they did in previous decades, meaning that one in ten Britons now lives alone, boosting the demand for homes. Despite stagnant incomes, buyers have more bite in the housing market. The Bank of England’s base rate of interest has been 0.5% since 2009; in real terms, rates have been below their historical peacetime average since 2004 and in nominal terms they are at their lowest ever. Demand has been stoked by “Help to Buy”, a mortgage-subsidy scheme launched in 2013. Britons have thus taken on masses of cheap debt. In the 1970s it took the average mortgage-holder eight years to pay off his loan, estimates Neal Hudson of Savills, an estate agent. These days it will take 20 years. Small wonder: the average loan-to-income ratio has jumped from 1.8 in 1981 to 3.2 in 2014. And many are not just buying houses for their own use. Outstanding “buy-to-let” mortgages for landlords are now worth £190 billion, more than 20 times their value at the turn of the century. The National Housing and Planning Advice Unit, a former public body, found that 7% of a total increase in house prices of 150% between 1996 and 2007 was accounted for by increased lending to landlords. All this demand has run up against sluggish supply. Over the past 40 years growth in Britain’s housing stock has slowed sharply (see chart 2). In the 1970s local authorities built about 130,000 dwellings per year; they now build 2,000. After Margaret Thatcher’s government allowed local-authority tenants to buy their homes, councils struggled to replace them because they had to set aside most of the proceeds. New restrictions on the amount councils could borrow put another brake on building. According to an estimate from 2008, the public sector owns one-quarter of the land in Britain suitable for residential development, in old garages, ex-military bases and poorly designed council estates. Private housebuilders have been idle, too. Strict planning laws are partly to blame. A quarter of English planning applications for houses are rejected, and even successful ones are often delayed. Protected “green belts”, which are supposed to contain urban sprawl and offer pleasant spaces to city-dwellers, now cover 13% of England. Much green-belt land is far from green: one-third of London’s and three-quarters of that in Cambridge is intensive arable land, estimates Paul Cheshire of the London School of Economics, who says there is enough green-belt land in Greater London to build 1.6m houses. The green belt remains sacred, but George Osborne, the chancellor of the exchequer, has vague plans to make it easier to force through some planning applications in the face of recalcitrant local authorities. Yet even when planning permission is forthcoming, housebuilders have held back. As of October 2013, of the 507,000 units of land with planning permission, half had yet to see any building. For reasons that economists do not fully understand, for 40 years the construction of new houses has been a remarkably stable one-tenth the number of houses bought and sold. Mr Hudson says this relationship probably holds because housebuilders try to sell new-builds at a price in the upper decile of those prevailing in the local market. The number of transactions has steadily fallen since the 1980s, putting a ceiling on the probable number of new-builds. One brake on buying and selling homes is stamp duty, a tax levied on housebuyers. Buying a house costing £430,000 (the average in London) would trigger a tax bill of £11,500, payable immediately. Last year the government changed stamp duty from a flat tax into a graduated one, turning it from a “very bad” tax into a merely “bad” one, in the words of the Institute for Fiscal Studies, a think-tank. Removing it entirely could boost housing transactions by 8-20%, according to different estimates. Also ripe for reform is council tax, a property levy collected by local authorities. Last updated in 1993, it hits residents in cheap areas relatively harder than those in pricey places. (The highest council-tax band in flash Kensington and Chelsea applies to dwellings worth more than £320,000; the average price there is £2m.) With these revenues held down, councils have less incentive to build more homes. And relatively low taxes on the priciest homes encourage people to remain in houses that are bigger than they need, thus reducing the supply of large houses to families. Despite Britain’s acute housing shortage, one-third of households have two or more spare bedrooms. Since coming to power in 2010 the Conservative government has done more to boost demand for housing than increase its supply. Labour, meanwhile, talks about rent controls, which could flatten supply further still. Persuading homeowning voters that more building is needed is hard. “When The Economist’s readers all write in to me having read your editorial and say: ‘Oh yes, and by the way, I’d like a house next to me,’ then we’ll know we’re winning,” says Mr Osborne. Letters should be addressed to the Treasury, London, SW1A 2HQ, before prices get any sillier. ============================================= Oct 1 2015 at 10:21 AM |Updated 25 mins ago Save article | Print Reprints & permissions Melbourne takes Sydney's house price lead Share via Email Share on Google Plus Post on facebook wall Share on twitter Post to Linkedin Share on Reddit NaN of "Fatigue has set in. For Sydney, back in 2001 the market rose for three years and three months then slowed. We are at that point now with Sydney," Corelogic RP Data's senior research analyst, Cameron Kusher said. "Fatigue has set in. For Sydney, back in 2001 the market rose for three years and three months then slowed. We are at that point now with Sydney," Corelogic RP Data's senior research analyst, Cameron Kusher said. Erin Jonasson Share on twitter Share on Google Plus by Su-Lin Tan Melbourne's property market took the lead in September, posting a 2.4 per cent rise in prices, as the Sydney market stalled, CoreLogic RP Data finds. Sydney housing prices hardly moved, rising 0.1 per cent over the month, down from 1.1 per cent while Melbourne grew at 2.4 per cent, up from zero in August. The Brisbane market was a surprise performer rising 1.4 per cent over the month, up from no growth in August. "Fatigue has set in. For Sydney, back in 2001 the market rose for three years and three months then slowed. We are at that point now with Sydney," Corelogic RP Data's senior research analyst, Cameron Kusher said. "Also some of the push to slow down investor lending is working its way in." Across the country, capital city dwelling values rose 0.9 per cent rise in September and 4 per cent lower than the September quarter. The results mirrored auction clearance rates in the major cities. Both Sydney and Melbourne have cooled to clearance rates in the 70s in recent weeks. Mr Kusher said despite the flat conditions in the dwelling prices, the market is still strong with supply just meeting demand. "The rest of spring will be a bit patchy though," he said. Brisbane surprises Strong investor interest and a net growth in population in Brisbane is fuelling some of the rise in dwelling prices for the city. Over the quarter, Brisbane grew 1.9 per cent and 4.6 per cent for the last 12 months. ​While half of Australia's capital cities have seen values rise over the past quarter and year, the other half did not fare as well. In Darwin, dwelling values fell by 3.9 per cent over the 12 months to the end of September, while in Perth, values were 0.9 per cent lower over the year. Adelaide home values dropped by 0.3 per cent, and Hobart values are 0.2 per cent lower. "Weakening labour markets, slower population growth and less demand for housing is placing downwards pressure on prices to differing degrees across these markets," Corelogic's head of research, Tim Lawless said. Yields still low While house prices are cooling, rental yields across the cities remained compressed. The lowest gross rental yields can be found in Melbourne where the typical house is now providing a gross return of just 2.9 per cent, and units are providing a gross return of 4.1 per cent, Corelogic said. In Sydney, gross yields are also at a record low with houses providing a gross return of 3.1 per cent and units yielding 4.1 per cent. "With the first month of Spring behind us, it is clear that housing market conditions are being tested, particularly in Sydney," Mr Lawless said. It is still better to buy than rent in some parts of Sydney. Property valuer Propell tipped Sydney and Melbourne house prices would slow to 5 per cent growth. Read more: http://www.afr.com/real-estate/residential/melbourne-takes-sydneys-house-price-lead-20150930-gjynx8#ixzz3nH0s6gNo Follow us: @FinancialReview on Twitter | financialreview on Facebook

Property investment in Adelaide: Red lights for renters

Decluttering is the first step in staging a home for sale, but what to do with all those unwanted items? Tina Parker has a great solution and how to execute it By Self-Counsel Press reprinted courtesy of Self-Counsel Press August 19, 2015 - See more at: http://www.rew.ca/news/home-staging-tips-1-how-to-have-a-successful-yard-sale-1.2035300#sthash.Ybjk5KI6.dpuf This article is an edited excerpt from Do Your Own Home Staging by Tina Parker, published by and reprinted here courtesy of Self-Counsel Press. For more information or to order a copy, click here. We all know that when you’re selling up, decluttering is a key part of staging your home for sale. But after you have decluttered and come up with storage solutions, you will need to get rid of everything you have decided to part with. A good way to use this to your advantage is to have a yard sale. In order to have a successful yard sale, you will need to apply the four Ps of marketing: product, price, place, and promotion. So you must know your products, set appropriate prices, find a place that will showcase your items, and promote your sale properly. Product Be organized and make items appealing: When selling books and compact discs, arrange them in a box with titles or artists facing upwards so the customers can easily read them. Sort items by categories, such as toys and household goods. Sort small toys and put them in sealed clear plastic bags, according to the type of toy or age group. Make sure all items are clean and working. Put everything on attractive covered tables – in keeping with staging your home, you need to stage your yard sale too! And make sure any items you do not want to sell are put away. If not, they will be the ones a buyer wants. Throughout your sale, keep your sale tables attractive by filling up empty spots as items get sold. Set the mood: Have easy listening, middle-of-the-road type of music on, rather than heavy metal. To lure customers in, display some of your larger, more interesting or top-selling items at the end of your driveway. Some people will just drive by slowly and determine if your sale is worth stopping for. Be careful how you arrange things: Use common sense and do not prop a nicely framed picture against a rocking chair on a very windy day. Keep makeup, compact discs, and electronic equipment out of the sun, and keep clothing off the grass. Ensure that all of your tables are stable and on even ground. Empty pockets first! When selling clothing and coats, take a minute and go through the pockets. A buyer once found a $20 bill in a jacket that she paid $5 for. All sales final: To avoid any issues later on, post a sign that reads “All Sales Final.” There have been stories about customers returning the next day wanting their money back on curtains that didn’t fit or end tables that were too big. Price Display pricing: Ideally, put prices on everything. If you do not have time to price everything individually, signs are helpful, such as “All books 25 cents each,” “Each piece of clothing $1.00,” or “Anything on this table 50 cents.” You also can offer a deal, for example, “Paperbacks 25 cents each or five for $1.” Another suggestion is to categorize priced items by location in the yard; post a large, clear sign marked “All items $5.00” where the section is, and make sure the section is obvious. Also, consider the physical size of the item; the bigger the item, the larger the price tag should be. Don’t expect buyers to search all over a couch for a tiny price tag. Know how to price: As a general rule of thumb, price items about a quarter or a third of what they would cost new. However, there are exceptions. Clothes are generally very poor sellers, unless they are baby or kids’ clothes. If you price adult sized clothing cheap enough, it will sell regardless; people are reluctant to pay a lot of money for clothes they cannot try on, but are willing to take a gamble if it is only for a dollar or so. Take some of your “nicer” clothes to consignment stores, rather than trying to sell them at a yard sale. If you still have the original boxes and instruction manuals for an item, you can probably charge a little bit more. Offer “fill a bag” deals: If you have a lot of kids’ clothes or small toys that you want to get rid of, consider having a “fill a bag for a set price” kind of deal. Yard sale buyers love getting a good deal. I have seen yard sales with “fill a plastic bag full of clothes for $2” and “fill a lunch bag with small toys for a nickel” (very cheap). Yard sale bargaining: Some buyers will expect you to barter with them. If it is early in the morning and you do not want to bargain, just say to them, “I think it is worth that price. I may lower the price later in the day if it doesn’t sell.” When the buyer asks you how much you want for a particular item, don’t say, “I don’t know, how about 50 or 25 cents?” No buyer in his or her right mind would respond, “Yeah, I want to pay the higher price. Give it to me for 50 cents.” Say, “How about 50 cents?” Then, if the buyer puts the item back or hesitate, counter with, “Or how about a quarter?” By using the higher price first, you give yourself room to negotiate. Money handling: Run a cash-only sale (or risk bad cheques) andhave lots of coins and small bills available to make change. If you do not, your first customer will be someone trying to buy 50 cents’ worth of stuff with a $20 bill. The amount of change you should start off with depends on the average prices of what you are selling. If you are selling a lot of small, lower priced items, you should be fine with around $80 to $100 broken down into small denominations. If someone hands you a large bill, leave the bill out in view until after you have given him or her change. You can put the bill partly under something such as a paperweight until after you hand the person his or her change. Otherwise, a dishonest person could tell you that he or she gave you a $20 bill, not a $10 bill. Having a calculator handy is helpful in totalling purchases. Make it easy for yourself to total items by pricing things evenly, for example 25 cents, 50 cents, $1, $5 etc. Do not leave your money lying around in a box as you’ll be distracted by customers. I recommend a fanny pack or carpenter’s apron so you’ll always have your money with you. Place Where your sale should be: Ideally your sale should be positioned close to the street where passers-by can easily take a look and you are close enough to answer their questions such as “Do you have any LPs?” This spot also prevents people from “forgetting” to pay for an item on their way out. On your property: If you are planning to host the sale in your yard, rather than your driveway or garage, make sure it is a clean and safe environment. Cut the grass a few days before an, fill in any ruts in the ground Love me, love my dog? Although you may have the friendliest dog in the world, it is best to keep animals away from your yard sale. Some people are afraid of dogs or are allergic. Keeping the dog out of the way is also for his or her own safety, since cars will be coming and going. And if your dog poops in your yard, do some pooper-scooping before the sale. Do you have enough parking? Before deciding to have a yard sale at your house, consider whether you have adequate parking to handle an additional four or five cars parked near your house at one time. If not, consider alternative venues, including splitting a yard sale with your friend at their house. You can also rent a table or space at a fundraising yard sale put on by a local community group, or sell at flea markets. Promotion Set a date: Saturdays and Sundays are usually the days devoted to being around the house or going out for leisurely drives. In other words, yard sales are ideally held on weekends. But do not pick a busy holiday weekend to have your sale, unless you live in high tourist area and could get more local traffic. Also, find out if your local government has any restrictions in place regarding yard sales or garage sales. Free advertising: Go big and advertise your yard sale on the Internet, for free on sites, such as www.kijiji.com or www.craigslist.org. Put up advertisements on bulletin boards within your community, such as at grocery stores, community centres, libraries, and mailbox centres; spread the news of your yard sale via word of mouth to coworkers and friends; and post a sign in front of your home a few days before the big event. Inexpensive paid ads: Advertise in your local newspaper. If you are unsure of what to say in your ad, read some others and copy elements from them; make sure to have proper spelling and your correct address. Ask neighbours if they want to share the cost of the ad and hold a multifamily yard sale – the more, the merrier! Signs: Make very clear yard sale signs, both for the sale site and to post in the surrounding neighbourhood, using cardboard or foamcore from local craft shops. Use designs such as big arrows for impact. When writing it, use large very clear lettering. Don’t try to cram too many words on the signs. All that’s really needed is the words “Yard Sale” (or “Garage Sale,”) the date of the sale, the street address, and a bold arrow pointing the way. After your signs are up, drive past to see if you can read them easily. If you can’t, nobody else can. Offer drinks: If your yard sale is blessed with a hot and sunny day, consider selling sodas from a cooler or having the kids run a lemonade stand. Offering complimentary paper cups filled with ice water on a hot day, with a trash can close by, is also a nice touch. The longer people stay at your yard sale, the more likely they will buy something and having a crowd will attract more crowds. Bag it: Have free plastic grocery bags available to bag sold items. If selling breakables, have newspaper available to wrap fragile items.Use everyday metal hangers if you are displaying clothes on a rack so that buyers can keep the hangers if they want to. After the sale Leftover items: If you still have some valuable items to sell, consider selling them on eBay, an online auction site. Visit www.ebay.com for a wealth of information to help you do this. Alterntively, plan to donate any good, unsold items to charities so that others will benefit. Confirm with charities first to see what kinds of donations they take, and in what condition the items should be. Clean up immediately: Do not forget to take your signs down right after the sale and remove all trace of the sale. Neighbours resent unnecessary clutter in their neighbourhood. Success: Count your money; you will have just had a successful yard sale! - See more at: http://www.rew.ca/news/home-staging-tips-1-how-to-have-a-successful-yard-sale-1.2035300#sthash.Ybjk5KI6.dpuf ===================== Red lights for renters Carly Jacobsby Carly Jacobs 16 DEC 2014 Renting Renting a property is exciting, but nerve wracking. Even if you’re on top of things, you can’t control everything and everyone, and there’s always a small risk you’ll run into an unpleasant surprise. To avoid finding yourself in a worrying situation, here’s a few things to look out for when you’re perusing the rental market. On their own, they mightn’t be a deal-breaker, but if there’s several at work you may want to reconsider before booking that moving truck. Female housemates in bedroom Rent seems too good to be true There’s a lot of money to be had in real-estate investments and typically a house owner will charge as much rent as they’re able to. Occasionally you’ll find a property that’s both amazing and cheap but that’s usually the exception to the rule. If you’re looking at a property and the rent seems questionably cheap… question it. There may be a good reason that you’ll uncover if you ask (that impacts the desirability of the property). It might be difficult to heat (leaving you with a large bill each quarter). The shower might give you exactly three mins of hot water before conking out. Or it might be next to a hidden nightclub that you didn’t notice that Saturday afternoon you inspected, but it now keeps you awake until 4am each night. Paying cash & no lease to sign Avoid moving into a property unless you’ve signed a lease and filled out a property damage check. Leases protect both the landlord and the tenant and will help to settle any disputes that may arise. They’re essential if you’re choosing to rent a home from a landlord who’s not using a real estate agent. If the landlord insists that you don’t need a lease, it’s a sign they may have something to hide. Paying in cash might be fine, but make sure the landlord provides you with a receipt on the spot, every time you pay rent. Cash transactions are untraceable, so if your landlord did end up being less than scrupulous, you’ll have no records of what you’ve paid. Private rentals are fine, just make sure the landlord goes through the correct avenues with a proper lease, property check report and timely receipts for payment of your rent. Couple moving into house Disrepair or poor repairs Properties need repairs and maintenance in their natural life, but those should be done in a safe, legal and responsible way. While it’s the landlords prerogative to choose the means and methods by which their property is up-kept, their tenants have the right to a safe property in liveable condition. If you’re noticing repairs made with crude materials like duct tape, glues or string then you should really be questioning whether or not you want to move in. Bad repairs may be a warning sign that the landlord doesn’t value the safety of their tenants and is prepared to compromise on necessary repairs on the home to save costs. This presents a problem not only for the existing repairs but for repairs that may be necessary while you’re living there. If a kitchen cupboard door has been fixed with masking tape you can be pretty sure that when the next kitchen cupboard breaks it won’t get the attention it should. Negative feedback from tenants or neighbours It’s often difficult to get in contact with previous tenants of a house but if you happen to know them, ask them for feedback. It’s not about dishing the dirt, but due diligence. If they don’t have a nice word to say about the landlord, tread carefully. If they’re ending their lease early, it’s in their best interest to get a tenant in the apartment as soon as possible. If they have any cautions under those circumstances, it’s worth paying attention. Too many unwanted belongings If you’re renting from a friend or an acquaintance and you feel comfortable making special arrangements in your rental agreement, that’s fine. If you’re renting from someone you’ve never met before and half their stuff is still on the property, they not re-directing their mail or they want to keep parking their car in the driveway then warning bells should be ringing for you. It’s quite possible they want to utilise storage space on their property, and not unreasonable in and of itself. However, if you’re paying to rent a property you’re paying for the full use of that property unless prior arrangements have been made. It may also imply you’ll see them around scrounging in the garage more than you’re comfortable with. You should also check out: You’ve been approved for a rental – now what!? 7 ways to win over a landlord How to prep for a rental inspection Tips to help housemates negotiate Search for your perfect rental or discover the perfect housemates ========================= A guide to property investment in Adelaide Paul Thornhillby Paul Thornhill 26 AUG 2015 InvestingAdelaide South Australia Like to buy a period style house for $600,000? It is still be possible in the Australian city which arguably boasts the most charm – Adelaide. For the newly arrived visitor, Adelaide’s inner suburbs are a revelation: tree-lined streets filled with wonderful examples of Victorian and Edwardian houses at comparatively affordable prices. But does that make for a great investment destination? How is the market travelling? Genevieve Toop, Director at Toop & Toop Real Estate says the market will likely pick up as we enter the warmer months. “We saw a drop-off in stock levels this winter after a good start to the year, but now there is an increase in vendors preparing to list for spring, so we think the market will travel well through the balance of the year.” “Traditionally, Adelaide doesn’t see peaks and troughs like Sydney and Melbourne and the market is a lot more stable than the eastern states.” Adelaide doesn’t see peaks & troughs like Sydney & Melbourne. UnleyFamily-friendly Unley if filled with character homes and timeless charm. Slow but steady wins the race? Adelaide House – Median price $425,000 – Growth quarter -1.1% – Year on year growth – 3.4% Unit – Median price $342,000 – Growth quarter 0.7% – Year on year growth 3.1% Other Australian capitals All dwellings – Median price $572,500 – Growth quarter 4.1% – Year on year growth 11.3% Source: RP Data CoreLogic Home Value Index 31 July 2015 Where are the best areas for investors? Toop nominates suburbs on the city fringe as the best, drawing in plenty of buyers and tenants alike. “Unley, Parkside, Norwood, North Adelaide, Fullarton; these areas are really popular as are coastal areas like Glenelg where there is always strong demand from tenants. “I also think some suburbs out in the east such as Glen Osmond and Magill are worth investigating. We are seeing a substantial number of buyers, including some from India and China, keen on getting into the school belt there.” GlenelgRenters love the lifestyle in Adelaide’s busiest coastal suburb, Glenelg. Key players: North vs South Wars in Adelaide Capital growth in the inner ring Median house price 5 year average growth Rental yield Unley $1 million 6.6% 2.5% Norwood $789,000 4.1% 3.1% Parkside $751,000 3.8% 3.1% Glen Osmond $813,000 2.9% 2.7% North Adelaide $846,000 2.4% 2.9% Mile End $545,000 2.4% 3.8% Magill $565,000 2.1% 3.5% Prospect $558,000 1.0% 3.6% Fullarton $760,000 0.9% 3.2% Glenelg $870,000 -1.1% 2.6% Source: realestate.com.au/invest Correct at time of publication Are there any peculiarities in the Adelaide market? “Our executive rentals are leasing very strongly as we have a lot of relocations coming from the eastern states. Properties that fit the bill in this market are in great demand and earning excellent returns,” Toop says. For investors looking for long term capital growth, Toop suggests a focus on character houses in suburbs around Mile End and Prospect. Glenelg houseLuxurious bluestones can be found across a slew of Adelaide suburbs. “There are some truly unique houses and villas there, many of them bluestone or limestone sitting on big land allotments. With a new hospital being built in this area and factoring in its proximity to the city, we see great value there over the long term.” Award winner: Adelaide makes New York Times hot list What about apartments? There has been some high-rise and mid-rise development in Adelaide’s CBD and in the western suburbs. To date the rental returns have been good but capital growth has proven a little disappointing. Toop suggest this market will take a little time to develop. “Around Port Adelaide, townhouses and converted warehouse are popular and I think capital growth will come. “We also deal with select properties in Newport Quay – where there are strong rental yields and tenant demand. “In the CBD, units which are priced to meet the market will sell but there is a lot of competition.” Adelaide shines: Where are the new apartment hotspots Northern suburbs set to tough it out Despite a downturn in manufacturing in Adelaide’s northern suburbs Toop says these areas are “not a blanket no”, with some opportunities to do well from rental returns. “Investors should keep an eye on this market as rentals are still strong and we could see an uplift in listings with longer term buying opportunities.” “I always advise investors to look for pockets in suburbs and concentrate on finding a property which they can add value to.” Hometown pride: Fitzy names Adelaide as his number one