It’s A Golden Era In Which To Be Australian…

 

Recently I spent time with Tony Pearson the Head Economist of the ANZ Bank and the quote above is how he commenced his address on the Australian economic scene. Tony, who hails from Sydney, then went on to say “and it’s an even better time to be a Queenslander and a brilliant time to be a Gold Coaster.” As fast as I could scribble down his positive observations all of which were founded upon statistical fact, he came up with yet more…which should make us all feel somewhat confident, even bullish, about our immediate outlook. So, here we go in condensed form:

The Directors Of Robina Realty Get The Good Oil From Tony Pearson Head Economist For ANZ Bank

 

Housing Growth

• 7-8%pa house price increase

• Perth is now the 2nd most expensive property market

• Sydney only capital city to decrease

• Canberra & Darwin also quite high

• QLD building approvals increasing and is the only state to do so.  This also means that the rate ($) of construction is also going up.  Interesting to note that despite its huge growth, WA building approvals going down.

• It has become evident that not enough homes are being built.  The completion of dwellings is below demand.  There is a major shortage in NSW & to a lesser extent in QLD.

• The above factors reflect in a sharp decline in rental vacancy rates.

 Interest Rate Rises

• It is predicted that there will be another rate rise. It’s a question of “not if, but when”. Pushed to make a prediction, Tony believes the rise will be after the election.

• The interest rate rise will be necessary to curb strong retail spending which is putting pressure on inflation which is trending upwards.

 Employment

• At a 4.2% unemployment rate we are at record lows.

• QLD, WA & NT have the highest employment rates indicating where the jobs and growth are to be found.

• Despite the unemployment rate coming down, there is not much pressure on wages.

• There are not as many people joining unions

And Here Are Tony’s Observations On The Global Front:

• The world economy is currently enjoying its longest period of above trend growth in 30 years. It’s in a “sweet-spot” where the world will continue to rain CASH on Australia via our resources.

• Australia is presently enjoying its 16th year of growth and this is likely to continue into the 17th and 18th.

Yes, right now it’s good to be an Aussie…and better to be a Gold Coaster!

If we can assist you in your investment portfolio needs, call me.

Kind regards,

 

 

Alanah Day

Managing Director

 

Special Days & Events

 

1st July, 2007	96th Anniversary of the Royal Australian Navy
1st July, 2007	41st Anniversary of Medicare
4th July, 2007	USA Independence Day
14th July, 2007	Bastille Day
July Birth Flower	Tulip
July Birth Stone	Ruby

 

Property Of The Month

5 Bedrooms…..Perfect for the Growing Family

	37 York Creek Crescent

 

Trade Shortage Affects Prices

Real Estate Dynamics

June Newsletter

 

If you thought you were paying more for the services of tradespeople, you were right, according to a Housing Industry Association (HIA) report that shows tradies remain in short supply and prices continue to rise.

  

HIA says that across Australia the price of 13 key home building trades climbed 0.4% over the March quarter to be up 3.4% over the year.  The trades seeing the largest annual price climbs were ceramic tiling (10.4%), roofing (9.9%), ‘other trades’ such as maintenance and repairs (9.5%), bricklaying (8.6%) and plastering (8.2%).

 

The price increases reflect a continued skill shortage in the trades, according to HIA chief economist Harley Dale. Quarterly trade prices increased 6.8% in regional Queensland, 5.7% in regional Victoria, 5.2% in regional New South Wales, 2.9% in Adelaide, 2% in Brisbane, 1.8% in regional South Australia and 1.5% in Sydney, HIA reported.  Prices fell 5.7% across Western Australia and were down 0.9% in Melbourne.

 

As your Managing Agent, we continue to work closely with our key tradespeople and in turn we are fortunate to have quality contractors who provide trade work at competitive pricing.  However in some trade areas we have experienced delays to obtain quotes simply due to the supply and demand of particular trade work eg qualified carpentry or building and fencing.  We strive to minimise delays for our clients with constant follow-up

and sourcing of other suitable contractors.

 

 

Water Restrictions & Rental Properties – What you need to know

REIQ Journal

June 2007

 

Level 5 water restrictions came into force in most shires of Southeast Queensland on 10 April this year. 

 

The level 5 water restrictions are just one part of the Queensland Water Commission’s water efficiency measures which include: 

• Achieving “Target 140” – a new campaign to achieve a regional average water use of 140 litres per person per day;

• Targeting inefficient, high volume residential water users and stopping wasteful water practices;

• Fitting water saving appliances and improving regulation to ensure Southeast Queensland’s buildings are water efficient; and

• Ensuring compliance with water restrictions.

The Residential Tenancies Act (RTA) policy review paper was released in April, recommendations included amending the Act to allow lessors to seek full reimbursement of water consumption charges from tenants in individually metered properties where water efficient devices have been fitted.  The lessor will be responsible for paying any fixed costs for the supply of water to the premises.  These amendments will only apply to individually metered premises.  Water efficient devices may include dual flush toilets, water efficient taps and showerheads.  Water leaks will be classed as emergency repairs (recommendation 66).

However, the current legislation states that the lessor must provide a reasonable amount of water to tenants.

The RTA has produced a fact sheet about water charging.  The fact sheet states that under sections 90 and 91a of the Residential Tenancies Act 1994, lessors are generally responsible for providing and paying for a reasonable amount of water supplied to the premises.

The lessor can only pass on water charges for excess water use to the tenant in general tenancies (units or houses) where the premises are individually metered and if the tenant uses above the reasonable amount provided.  The amount charged by the lessor to the tenant cannot exceed the amount charged to the lessor by the water supply authority less an amount for reasonable consumption.  Premises can be individually metered for water, as is the case with most houses.  Some units are also individually metered.

The RTA suggests lessors and tenants use the following questions to assist in deciding the amount of water that is reasonable for the lessor to pay:

1. How does the local council charge for water?

2. What is the average water usage in your area?  You local council may have some information on this.

3. How many people will be living in the premises?

4.  How large is the block or yard?

5. Are there gardens which the lessor wants watered?  If the lessor wants the tenant to water an extensive garden, this may have a bearing on who pays for this water usage.

6. Is there a pool or other special items that use a lot of water?

7. Are the premises fitted with water-saving devices, such as dual flush toilets, built in watering systems and shower roses?

8. What should the lessor reasonably pay for?

Answers to frequently asked questions on the Level 5 water restrictions can be found at www.qwc.qld.gov.au

Non Existent Property To Sell

Real Estate Dynamics

June Newsletter

Here’s an article we came across by Jamyes Song an Associated Press Writer. It’s fascinating reading!

HONOLOLU: Real estate is often a long-term investment. But 10,000 years? Lo'ihi Development Co. will soon start offering ocean view lots speculators won't even be able to stand on for many millennia.  That's because they're currently submerged more than 3,000 feet below sea level -- on an underwater volcano called Lo'ihi, located about 20 miles southeast of the Big Island of Hawaii.  The company’s website will be renovated in the next couple of weeks to officially begin selling parcels for an introductory price of $39.95.  Buyers will receive a brochure and a "deed," but much like Internet groups that claim to sell stars, they probably can't call themselves owners.  "What's the scam?" said Norm Nichols, co-developer of the online venture.  "If you really think there's something here that you can't live with, nobody's forcing you to buy it. It's meant to be fun."

Local consumer affairs office has no problem with it as long as the website is clear that it is a parody – and that there will be no actual real estate passing hands.

The Web site advertises, "Lo'ihi Seaview Estates: Real Estate for the Future. Grand Water View Front Lots."  A photo of the sales office is a raft in the middle of the ocean.  Nichols and his business partner, both Honolulu entrepreneurs, envision online chat rooms to discuss everything from street names to what kind of government to install.  They want to hold a "homeowners association" meeting -- a boat ride over the volcano -- every April Fool's Day.

Scientists don't really know when, or if, Lo'ihi will break the surface of the Pacific Ocean.  Many guess about 10,000 years, but it could be much longer than that.

It could only happen in America!

Smoke Alarms

REIQ Journal

June 2007

From 1 July 2007, every domestic dwelling in Queensland is required to install smoke alarms.  The new laws, which fall under the Queensland Fire and Rescue Service Act 1990, apply to all residential dwellings in Queensland, not just the rental sector.

The law has placed minimum requirement for the type of smoke alarm is a 9 volt battery operated alarm.  It is recommended that lessor’s consider higher standards of alarm such as photoelectric 10 year tamper proof lithium battery alarm or a 240 volt hard wired alarm with battery back up.  However, if a landloard has a 9 volt battery operated alarm installed at their property, this would meet the legal requirements imposed by the Queensland Fire and Rescue Service Act.

The alarms are required to be installed on or near the ceiling on any storey, between areas containing bedrooms and the rest of the house or unit, eg hallways or on a storey not containing bedrooms on the most likely evacuation route from the property.

The laws have imposed maintenance obligations on both the lessor and the tenant.

Lessor Obligations

The lessor must clean and test all smoke alarms at the property within 30 days of the start of a tenancy, including renewal agreements.  For example, if a tenant enters into a six month tenancy agreement and the lessor offers a renewal agreement at the end of that agreement, the lessor is obligated to clean and test all alarms within 30 days of a new agreement beginning.

If it is found that the battery is flat or almost flat at the time of cleaning and testing the alarm, the lessor must replace the battery immediately.  If the alarm fails, other than because the battery is flat, the lessor must replace or repair the alarm.  The lessor must replace the alarm before it reaches the end of its service life.

Tenant Obligations

The tenant must replace the battery if the battery is flat or almost flat during a tenancy.  The tenant must clean and test the alarms during a tenancy only if they have a tenancy agreement for 12 months or longer, or if they are on a periodic tenancy that is 12 months or longer in duration.

If the tenancy is less than 12 months in length, or a periodic tenancy lasts for less than 12 months, the obligations for cleaning and testing an alarm can not be passed on to the tenant.

The tenant must notify the lessor/agent immediately if they become aware that the alarm has failed other than because the battery is flat or almost flat.

For A Chuckle - Know Versus Don’t Know

The world is divided into two groups. There are those who know, and those who don't know. Those who know are no problem.

Those who don't know are also in two groups.

One is those who don't know and know they don't know. Well, they can learn!

But then, there are those who don't know, and don't know they don't know. If you know anyone like this, sit them down and calmly take them through their situation…but remember, it’s very likely they already know, except they don’t know that they know!

Cooking Corner - Grilled Country Ribs with Summer Savoury Mustard Marinade

Courtesy FoodNetwork.com

 

2 tablespoons Dijon mustard 1 tablespoon red-wine vinegar 1/4 cup olive oil 1 tablespoon dried summer savory, crumbled, or 3 tablespoons fresh summer savory, chopped fine 1 tablespoon water 2 pounds country-style pork ribs (about 6) Prepare grill. In a bowl whisk together mustard, vinegar, oil, summer savory, water, and salt and pepper to taste. In a baking dish large enough to hold ribs in one layer coat them with marinade and let stand, covered, at room temperature 15 minutes. Grill ribs on an oiled rack set 5 to 6 inches over glowing coals until just cooked through, about 10 minutes on each side.

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