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" What's Happening In New South Wales " Property Guru John Mcgrath Tips Sydney House Prices To Continue Rise

In his first 2015 Experts column for online financial information hub Switzer, property guru turned TV personality John McGrath has tipped this to be a prosperous year — for sellers. He said that over the Christmas break he reflected on an “incredible” year for Sydney real estate citing an unusually large wave of stock hitting the market right before yuletide. 14 January 2015. More. Sydney Property Boom To Start Receding By End Of The Year, Analysts Say

Sydney's home price boom is set to come off the boil over 2015 with experts forecasting a spurt in prices over the first half of the year followed by more subdued activity. CPM Realty research has predicted

total price g rowth of between 5 and 7 per cent over the year. 10 January 2015. More. How Did New South Wales Building Approvals Fare?

The latest ABS housing approval statistics indicated a record high, but the results have been varied from state to state. New South Wales approvals actually dropped over the November period, explains Urban Taskforce chief executive Chris Johnson. 9 January 2015. More.

Refinancing Powers Ahead, But FHBS Still MIA

Refinancing has seen a surge in the last month of 2014, hitting its highest level in more than two years. Data from AFG shows the proportion of home loan borrowers refinancing rose to 37.3% in December, up from 33.5% in September. 8 January 2015. More.

NSW Hot Spots Revealed In New Report

Property prices at some hot spots on the New South Wales coast have surged by as much as 15.4% in the past 12 months. The rapid rise is only part of the story though as although parts of the central coast have boomed, there has been a decline of almost 10% in parts of the mid-North coast. 7 January 2015. More.

" What's Happening In Queensland " The True State Of Queensland’s Economy, Without The Spin

Judging from the first week of campaigning, the 2015 Queensland election is going to be very much about economics – and jobs in particular. On the one hand, Premier Campbell Newman and his Liberal National Party stress that under their “strong economic management”, 1,100 new jobs are being created every month and Queensland is on track to become the fastest growing state economy in Australia. 12 January 2015. More. What Can You Buy For Brisbane’s Median House Price?

Brisbane's median house price now sits at $466,500 after 0.8% growth over December, according to CoreLogic RP Data. Over 2014, the city saw house values increase by 4.8%­ – the third highest yearly growth rate

of Australia's capital cities, after Sydney and Melbourne. Property Observer looks to recent Brisbane sales to see just what a median-priced house looks like. 12 January 2015. More. Brisbane Sees Best Long Term Property Price Growth

Brisbane has had the highest average annual house price growth across the country’s capital cities since 1970 at 11% per year, according to Hotspotting.com.au. This means the city’s house prices have doubled about every six years over the past 35 years. 9 January 2015. More.

Regional Queensland To Take Off In 2015

Strong market conditions are ahead for regional Queensland, according to a leading property group. Raine & Horne has claimed regional Queensland will see a property market boom in 2015. 8 January 2015. More.

National Dirty Dozen: Locations In Decline

Queensland dominates locations around Australia that, for local reasons, are in decline. In most cases, the decline has been caused by changes in the resources sector, coupled with a major increase in new dwelling supply, as developers got their timing horribly wrong. 6 January 2015. More.

Issue # 085 January 16th

2015

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State Of The Nation Continued…

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"What's Happening In Victoria" Melbourne House Rents Stagnant In December Quarter As Unit Rents Fall Tenants in Melbourne have much to cheer about as weekly rents fall or stagnate in some of the city's most desirable areas. High levels of apartment construction are affecting rental growth and vacancy rates, new Domain Group data shows. The median weekly asking rent for houses remains $380, while unit rents have dropped 1.4 per cent to $360, the December quarter rental report released on Thursday shows. 15 January 2015. More. Vacancy Rates Recovering

New data shows rental vacancy rates across one state are stable or falling, while some regional markets are offering healthy yields of up to 5.4 per cent. Real Estate Institute of Victoria (REIV) CEO Enzo Raimondo said recent vacancy data shows that in Geelong, the regional centre with the highest rate, there was a 0.1 per cent fall to 4.4 per cent in October, based on the six-month average trend to 31 October. 14 January 2015. More. Melbourne Property Market: More Sellers Making A Profit

The waiting game is paying off

for a growing number of homeowners, with more than a third at least doubling their money when selling. Melbourne is one of the top

spots in Australia for making a profit on property according to CoreLogic RP Data. 13 January 2015. More.

Melbourne Home Values Rise Faster South Of The Yarra In 2014

The top 10 Melbourne suburbs ranked by growth in house values in 2014 were dominated by some of the cities most expensive suburbs and they were located south of the Yarra. Overall, the Melbourne housing market produced a near repeat of 2013 with house values rising by 8.4 per cent and units recorded a rise of 1.1 per cent. 12 January 2015. More.

Massive Fraud Allegations See Melbourne Brokers Arrested

Two Melbourne brokers at the centre of a massive fraud investigation have been arrested. Najam Shah and Aizaz Hassan of Footscray Company Myra Home Loan Pty Ltd have been arrested and charged with conspiracy to defraud, ASIC has revealed. 7 January 2015. More.

"What's Happening In South Australia" Your Dream Lifestyle Begins On The South Brighton Beachfront

The contemporary 1960s home, which is just metres from the beach, is well known in the area, says selling agent Mike Wignall, of Gary J Smith Real Estate. “It’s a very impressive, corner elevated site,”

Mr Wignall says. 14 January 2014. More.

How Chimney Coming Down Has Boosted House Prices

A Surprise southern coastal suburb is among the areas local real estate agents are tipping to be standout performers this year. O’Sullivan Beach has a huge potential for capital growth, according to Timms Real Estate property marketing specialist Ainsley Cahoon. He said the removal of the landmark chimney at the former Exxon Mobil Port Stanvac refinery last year had taken some of the stigma of the suburb with it. 12 January 2015. More. SA’s Coastal Hot Spots Still Below 2010 Prices, But Sales Improving

Property values in the popular south coast hot spots of Victor Harbor, Port Elliot and Middleton are still below where they were in 2010, but there has been a “mild improvement” in transaction rates over the past year. Phil Dodd, managing director of Dodd and Page, a prominent family-run firm founded in 1922, says South Australian coastal holiday spots are less influenced by international factors than east coast destinations. 10 January 2015. More.

Stamp Duty Comes Under Fire As SA Housing Approvals Fell In November

Industry bodies are renewing their calls on the State Government to review stamp duty costs after Australian Bureau of Statistics data released yesterday show the number of SA housing approvals fell in November. ABS Building Approvals data show the number of dwellings approved rose 0.2 per cent nationally in November in trend terms. 9 January 2015. More.

Adelaide Property Owners Profit In A Year Of Rises

Adelaide house prices rose 4.3 per cent last year, the fourth best performance in the nation. Capital city home values were up 0.9 per cent in December, and were up 7.9 per cent nationally in 2014, according to the CoreLogic RP Data home value index. Sydney led the way with prices up by a whopping 12.4 per cent in the year, but were flat in December. 2 January 2015. More.

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State Of The Nation Continued…

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"What's Happening In Western Australia" Perth Rents Dropped Further In December

Perth rents dropped further in December with the median price dropping by $10 to about $440 a week. Real Estate Institute of Western Australia president David Airey said the

shift was more noticeab le in apartments and villas. 14 January 2015. More.

Negative Gearing: WA’s Mum And Dad Property Investors Face Most Hurt If Negative Gearing Is Scrapped

Whether you love it, hate it or don’t understand it, negative gearing is one of our most controversial taxes. And with rumours circulating that the Federal Government may be looking to scrap it, the debate is getting hotter. Despite criticisms negative gearing is a tax concession for the rich. 14 January 2015. More. Regional WA Beats Out Regional QLD In Resale Race To The Bottom: Corelogic RP Data

In the 2014 September quarter, 90.7% of properties sold in Australia recorded a profit, with 30.1% selling for more than double their purchase price, according to CoreLogic RP Data. Regional Western Australia, however, didn't attract many of those gains. The area recorded the highest proportion of loss-making resales in the country, seeing 22.5% of resales make a loss in the September quarter. 13 January 2015. More.

RE/MAX WA Head Welcomes Pet-Owner Tenants The common thinking that accepting pet owners as tenants can lead to a disaster to your property appears to be invalid as new data show that sealing a contract with them may be preferable to having tenants with toddlers. Geoff Baldwin, managing director of RE/MAX WA, said pet owners are more willing to pay premium rent and much less likely to move out anytime soon. Moreover, Baldwin said he observed that there are more damage can be done by young children than by a dog. 12 January 2015. More. Jail For Nigerian Mastermind Behind 2012 Perth Property Fraud The multi-national eight-month investigation by WA's major fraud squad, Australian Federal Police and authorities in South Africa and Nigeria has resulted in a year's jail for the convicted mastermind. Ntuen Promise Ekenmini tried to sell a $780,000 home in the Perth suburb of Falcon using forged documents. 6 January 2015. More.

"What's Happening In The Northern Territory" NT Government Takes Steps Against Rising House Prices

The government land release program in the Northern Territory has seen a record number of new residential titles issued in Greater Darwin in an effort to assist with subduing rising prices, with the Government saying

rising prices are good for investors but not for everyone. 8 January 2015. More. FHOG Restricted To New Homes In The Northern Territory

In the Northern Territory, the First Home Owners Grant (FHOG) is now only available for first home buyers entering into contracts to construct or purchase a new home. As of 1 January, Northern Territorian first home buyers will only be able to access the grant if they purchase new, providing them with a $26,000 cash incentive to construct their own dwelling. 5 January 2015. More.

‘Worst Capital City Market’ To Continue Downturn Australia’s weakest capital city is set to continue its poor performance in 2015, according to a leading market commentator. SQM Research’s Louis Christopher said according to the research house’s figures, Darwin is currently the weakest capital city market. 5 January 2015. More.

"What's Happening In Tasmania" Boom Time For Homes In Tasmania

Residential building approvals jumped 25 per cent during the past 12 months as Tasmania shared in a national boom in building activity. The Housing Industry Association said new home building approvals for

the nation reached their highest monthly level during November. 9 January 2015. More.

Hobart Rental Market Heats Up

Hobart house rents grew by 4.5 per cent in the three months to December 2014, while activity in other capital cities remained subdued, new figures reveal. The latest research from CoreLogic RP Data depicts modest house rent growth across other capitals in the final months of 2014, with Brisbane rising 2.5 per cent, Adelaide 1.4 per cent, Canberra 1.1 per cent and Sydney 1.0 per cent. 9 January 2015. More.

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State Of The Nation Continued…

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If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to kevin@smartpropertyadviser.com.au

"Market Update" The Best Ways To Lose Money Often regarded as the world's most successful investor, Warren Buffett says the first rule of making money is never to lose money. His second rule is never to forget rule number one. It's not as simple as avoiding loss-making investments. 14 January 2015. More.

Decline In Loans For Home Construction Nothing To Worry About, Say Property Lobbies

Building and property lobbies have talked down concern over a downturn in residential construction – a key driver of economic growth – despite the latest figures revealing a decline in the number of loans for the construction of new homes. 13 January 2015. More.

Housing Finance Commitments Start To Ease In November 2014 The November 2014 housing finance data from the Australian Bureau of Statistics (ABS) indicates that demand for mortgages is starting to wane. We would expect that this trend will continue over the coming year as APRA crack down on higher risk mortgage lending and focus on curtailing growth to the investment segment of the market. 13 January 2015. More. Rate Cut Hopes Rest On 'Weak Foundations' The Commonwealth Bank has bucked the trend by forecasting that the Reserve Bank of Australia is unlikely to cut interest rates in 2015. The official cash rate has remained at a record-low 2.5 per cent since 2013, but both Westpac and NAB forecast last month that the cash rate would fall to at least 2.0 per cent in 2015. 12 January 2015. More.

Units Lead Slow Property Rental Growth In 2014 Weekly property rents across the capital cities were 2.6% higher in December 2014 than they were a year earlier, the slowest growth rate in a decade, according to CoreLogic RP Data. Median house rents were up 1.2% on the year across the capitals

combined 8 January 2015. More. Finance Broking Associations At Odds Over SMSF Borrowing Two major finance broking associations are lobbying the government for opposite outcomes to the Financial System Inquiry’s final report, with one advocating a ban on LRBAs and the other pushing for borrowing in super to remain. 8 January 2015. More.

"What's Happening Internationally" UK Mortgage Market Sees Lending Fall Off Toward End Of 2014 Lending trends to first time buyers, home movers and remortgaging in the UK have declined but there has been an annual rise in buy to let lending, according to the latest data from the Council of Mortgage Lenders. 14 January 2015. More.

Australians Wish For A Debt-Free 2015, Study Says

A survey by NAB shows most Australians are aiming for financial responsibility this year by saving more, making fewer impulsive splurges, and keeping a more realistic budget. However, New Year resolutions varied between age groups. People between 30 and 49 years old were the most likely to want to settle their first home buyer loans and other mortgages, including credit cards. 13 January 2015. More.

Controversy Corner

Australian Dollar Bounces On Disappointing US Retail Data Disappointing US retail sales numbers have given the Australian dollar a lift above 81 US cents. At 0700 AEDT on Thursday, the local currency was trading at 81.48 US cents, up from 80.93 cents on Wednesday. Official figures overnight showed that US retail sales slumped in December, falling 0.9 per cent, despite cheaper petrol prices and falling unemployment. 15 January 2015. More.

Some Parting Advice

“Quick fixes don’t work; only for the person selling the quick fix. Whether you like it or not, creating wealth through property takes

time.”

Until Next Time… Kevin Lee

www.smartpropertyadviser.com.au