The CBA has launched a fee-free standard mortgage at a rate of just 7.24%! Currently Westpac charges 7.86%, ANZ 7.8%, and NAB 7.67%.
Long live competition!
Saturday, February 26, 2011
Friday, February 25, 2011
Australians struggle to enter property market
The following is extracted from today's Real Estate Business:
Australia’s housing affordability problem shows no sign of abating, according to recent figures.
Data from the Australian Bureau of Statistics found residential construction work done fell by 1.1 per cent in the December 2010 quarter.
New residential building work done fell by 1.7 per cent in the December 2010 quarter, following the 5.2 per cent decline in the September 2010 quarter.
On a more positive note, work done on major alterations and additions is again growing, turning in a 2.5 per cent increase for the December 2010 quarter to be up by 6.3 per cent over 2010.
Housing Industry Association senior economist Andrew Harvey said renovations continue to be popular as Australians increasingly look to improve their existing homes rather than face the mounting transaction costs, such as stamp duties, that they will incur if they trade-up to another property.
“Unfortunately Australia’s high property transactions costs do not help the problem of Australia’s undersupply of housing, nor the affordability problems faced by both prospective home owners and those in the market for rental property,” Mr Harvey said.
“Recently the OECD found that Australia has the fourth highest transactions cost on property in the developed world and this situation causes major inefficiencies in terms of locking owners into their existing properties.
"Australian governments need to turn their attention to removing stamp duties on new homes so as to better encourage annual levels of new home building that will help ease the pressure on prospective home owners, particularly young Australians who are really struggling to enter the housing market."
Australia’s housing affordability problem shows no sign of abating, according to recent figures.
Data from the Australian Bureau of Statistics found residential construction work done fell by 1.1 per cent in the December 2010 quarter.
New residential building work done fell by 1.7 per cent in the December 2010 quarter, following the 5.2 per cent decline in the September 2010 quarter.
On a more positive note, work done on major alterations and additions is again growing, turning in a 2.5 per cent increase for the December 2010 quarter to be up by 6.3 per cent over 2010.
Housing Industry Association senior economist Andrew Harvey said renovations continue to be popular as Australians increasingly look to improve their existing homes rather than face the mounting transaction costs, such as stamp duties, that they will incur if they trade-up to another property.
“Unfortunately Australia’s high property transactions costs do not help the problem of Australia’s undersupply of housing, nor the affordability problems faced by both prospective home owners and those in the market for rental property,” Mr Harvey said.
“Recently the OECD found that Australia has the fourth highest transactions cost on property in the developed world and this situation causes major inefficiencies in terms of locking owners into their existing properties.
"Australian governments need to turn their attention to removing stamp duties on new homes so as to better encourage annual levels of new home building that will help ease the pressure on prospective home owners, particularly young Australians who are really struggling to enter the housing market."
Monday, February 21, 2011
Main Roads Bonds to fund infrastructure.
Here is an interesting comment in the Daily Telegraph, by Richard Talbot, Fmr NRMA Director & RTA surveyor of Sydney, and now leader of the new political party TheGreys:
"The RTA has been cash strapped now for nearly 2 decades which is why the only new roads we've seen built in NSW have been toll roads. The next NSW Govt should re-introduce government-guaranteed Main Roads bonds like we used to have to provide a long overdue injection into road funding. Borrowing from the public to build major public infrastructure such as roads and rail lines is good for the economy and provides lots of jobs, not to mention the good feeling commuters get from seeing something is actually being done to solve our transport problem."
"The RTA has been cash strapped now for nearly 2 decades which is why the only new roads we've seen built in NSW have been toll roads. The next NSW Govt should re-introduce government-guaranteed Main Roads bonds like we used to have to provide a long overdue injection into road funding. Borrowing from the public to build major public infrastructure such as roads and rail lines is good for the economy and provides lots of jobs, not to mention the good feeling commuters get from seeing something is actually being done to solve our transport problem."
Friday, February 18, 2011
NSW Labour's last splurge?
According to SMH today, the Rozelle Residents Action Group is alarmed at the bulk and scale of the proposed residential and retail development on the Woolooware waterfront Victoria Road site. But thanks to the Labour government's "Project of State Significance" legislation, the minister can approve the development because it is worth a lot of money.
The developer has asked the planning department to declare the new project as a "Project of State Significance" so that the minister can approve it despite local objections. The new project is worth about $200 million, almost twice the estimated cost of the project that was rejected last year. Is that adequate justification for now approving it?
Given that the Liberal party have vowed to terminate this PSS rule and restore planning rights to local authorities, it seems most unethical that Labour's minister should approve the project so close to an election which will throw his party out of office and rescind that planning law!
The developer has asked the planning department to declare the new project as a "Project of State Significance" so that the minister can approve it despite local objections. The new project is worth about $200 million, almost twice the estimated cost of the project that was rejected last year. Is that adequate justification for now approving it?
Given that the Liberal party have vowed to terminate this PSS rule and restore planning rights to local authorities, it seems most unethical that Labour's minister should approve the project so close to an election which will throw his party out of office and rescind that planning law!
Friday, February 11, 2011
North West Rail Link - EcoTransit Community Forum
With the NSW election due very soon, everyone needs to know how the various political parties stand on the North West Rail Link issue. It is therefore good to hear that EcoTransit is organising a forum to allow all those parties to explain their policies.
Come along to the forum on Sunday 6 March at 7pm, at the Pennant Hills Community Centre (corner of Yarrara and Ramsay Roads, Pennant Hills).
Come along to the forum on Sunday 6 March at 7pm, at the Pennant Hills Community Centre (corner of Yarrara and Ramsay Roads, Pennant Hills).
Wednesday, February 9, 2011
New Legislation will impact Buyers
This post is taken straight from Real Estate Business:
The National Consumer Credit Protection Act has come under scrutiny, with industry pundits arguing the new laws will negatively impact both buyers and sellers.
RE/MAX WA managing director Geoff Baldwin is concerned that the newly introduced NCCP Act will negatively impact any borrower over the age of 35, and could potentially impact those who are selling to upgrade.
“Effectively the new responsible lending obligations on banks and brokers depict that a borrower should have the capacity to repay the loan in full at retirement age without selling their owner occupied property,” Mr Baldwin said.
“These changes mean that a borrower aged, say 55 can no longer take out a loan over 30 years but will be restricted to a much shorter term unless they can demonstrate that they will have superannuation or other assets they can sell to finalise the loan at retirement.”
According to Mr Baldwin, the impact that these legislative changes could have to the property market has been totally underestimated.
“There has been little or no public education or communication to ensure people are aware of how they may be affected,” he said.
“Obviously this would mean much higher repayments and in many cases it will disqualify people and exclude them from the market."
The National Consumer Credit Protection Act has come under scrutiny, with industry pundits arguing the new laws will negatively impact both buyers and sellers.
RE/MAX WA managing director Geoff Baldwin is concerned that the newly introduced NCCP Act will negatively impact any borrower over the age of 35, and could potentially impact those who are selling to upgrade.
“Effectively the new responsible lending obligations on banks and brokers depict that a borrower should have the capacity to repay the loan in full at retirement age without selling their owner occupied property,” Mr Baldwin said.
“These changes mean that a borrower aged, say 55 can no longer take out a loan over 30 years but will be restricted to a much shorter term unless they can demonstrate that they will have superannuation or other assets they can sell to finalise the loan at retirement.”
According to Mr Baldwin, the impact that these legislative changes could have to the property market has been totally underestimated.
“There has been little or no public education or communication to ensure people are aware of how they may be affected,” he said.
“Obviously this would mean much higher repayments and in many cases it will disqualify people and exclude them from the market."
Friday, February 4, 2011
NSW Labour At It Again
In the dying days of their disastrous and discredited government, the NSW labour government is making a final gift to the developers, approving the immediate construction of a new cruise ship terminal at White Bay.
Apparently this decision has been made before community consultation is complete. Obviously the objective is to allow work to progress before the election, making it more difficult for the new government to cancel it. Or rather, to increase the cost of such cancellation to the taxpayer if consultation concludes the move is wrong.
Objections have come from the City of Sydney and Leichhardt councils and the National Trust, all of whom argued that the cruise ships should continue to dock at Barangaroo.
The biggest operator of cruise ships, Carnival Cruises, said the present cruise ship berth at Barangaroo is the ideal location because it allows passengers direct access into the city on foot, encouraging them to spend money in the city. The White Bay berth will require fleets of busses running shuttle services down Victoria Road every time a ship docks, with a planned 170 ships this year alone, and many on those ships will not want to queue for busses and so will stay in air conditioned comfort on the ship.
"The move from Barangaroo was always a political, government, decision. We always said we wanted to stay at Barangaroo," said Carnival's chief executive.
But the developers of Barangaroo are not concerned about traffic on Victoria Road, or the effect of such changes on the cruise ship traffic, or the loss of trade to Sydney retailers. And it seems the wishes of those developers count for more than any others when the state government is about to be sacked.
Apparently this decision has been made before community consultation is complete. Obviously the objective is to allow work to progress before the election, making it more difficult for the new government to cancel it. Or rather, to increase the cost of such cancellation to the taxpayer if consultation concludes the move is wrong.
Objections have come from the City of Sydney and Leichhardt councils and the National Trust, all of whom argued that the cruise ships should continue to dock at Barangaroo.
The biggest operator of cruise ships, Carnival Cruises, said the present cruise ship berth at Barangaroo is the ideal location because it allows passengers direct access into the city on foot, encouraging them to spend money in the city. The White Bay berth will require fleets of busses running shuttle services down Victoria Road every time a ship docks, with a planned 170 ships this year alone, and many on those ships will not want to queue for busses and so will stay in air conditioned comfort on the ship.
"The move from Barangaroo was always a political, government, decision. We always said we wanted to stay at Barangaroo," said Carnival's chief executive.
But the developers of Barangaroo are not concerned about traffic on Victoria Road, or the effect of such changes on the cruise ship traffic, or the loss of trade to Sydney retailers. And it seems the wishes of those developers count for more than any others when the state government is about to be sacked.
Thursday, February 3, 2011
Beecroft Cheltenham Civic Trust AGM
The BCCT Annual General meeting is due to be held on Monday 7 March at the Cheltenham Recreation Club.
A new constitution is being proposed with some significant changes. For instance "Membership shall lapse if the subscription is unpaid six months after it is due" is to be changed to lapsing after three months. Given the need to optimise the political power of the voice of the Trust, why would the committee propose deliberately to disenfranchise people in this way?
The influence yielded by the trust is largely determined by membership, and would therefore be greater if this rule was changed to read: "A member shall lose the right to vote at the AGM if the subscription is unpaid for six months after it is due." In other words, the Trust should be claiming to represent anyone who ever paid a membership fee!
What should alarm the local residents most is that there has been no explanation of this or other changes proposed. If these issues concern you, then join the trust, come to the AGM, and have your say!
A new constitution is being proposed with some significant changes. For instance "Membership shall lapse if the subscription is unpaid six months after it is due" is to be changed to lapsing after three months. Given the need to optimise the political power of the voice of the Trust, why would the committee propose deliberately to disenfranchise people in this way?
The influence yielded by the trust is largely determined by membership, and would therefore be greater if this rule was changed to read: "A member shall lose the right to vote at the AGM if the subscription is unpaid for six months after it is due." In other words, the Trust should be claiming to represent anyone who ever paid a membership fee!
What should alarm the local residents most is that there has been no explanation of this or other changes proposed. If these issues concern you, then join the trust, come to the AGM, and have your say!
M2 Kirkham Bridge Usage Restrictions
There is another nasty rumour going around, that during the period of widening the spans of the Kirkham road bridge over the M2, between Murray Farm Road and Kirkham Street, the single lane left open will be restricted to light vehicles only! No buses for the school kids, and no fire engines!
One hopes therefore that the M2 Project will be devoting significant planning effort into minimising the duration of the span widening activity. It is preposterous to claim it will coincidentally take exactly the same duration as the overall project.
Indeed competent project planning would want this span widening to be completed very early to allow better access for the work gangs widening the road under the bridge. As soon as that work is finished, full two lane access without weight limits should be restored immediately. Obviously this will benefit the community as well as the project.
Meanwhile, what arrangements have been put in place to fight fires in the houses and bushland around Murray Farm Road during the (hopefully very short) period that the fire engines from Beecroft Fire Station are unable to use the bridge?
One hopes therefore that the M2 Project will be devoting significant planning effort into minimising the duration of the span widening activity. It is preposterous to claim it will coincidentally take exactly the same duration as the overall project.
Indeed competent project planning would want this span widening to be completed very early to allow better access for the work gangs widening the road under the bridge. As soon as that work is finished, full two lane access without weight limits should be restored immediately. Obviously this will benefit the community as well as the project.
Meanwhile, what arrangements have been put in place to fight fires in the houses and bushland around Murray Farm Road during the (hopefully very short) period that the fire engines from Beecroft Fire Station are unable to use the bridge?
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