From the weekend Sydney Morning Herald:
ENERGY efficiency in NSW homes is becoming riddled with cheating and mistakes, and NSW is falling behind other states in terms of smart power use, the industry body for measuring energy performance says.
The Association of Building Sustainability Assessors says the introduction of online ''do-it-yourself'' measurement kits for home owners has led to widespread errors under the state's Building Sustainability Index, known as BASIX.
The government said the claim was unfounded, and that NSW performed equal to or better than other states in terms of energy efficiency, and in any case it was the building assessors' job to detect cheatsRead more: http://www.smh.com.au/environment/energy-smart/claims-of-cheating-and-mistakes-in-energy-use-20110902-1jq66.html#ixzz1X7nkuQ75
No direct state-by-state comparison is possible due to a lack of recent data, along with different measurement methods.
The body said the introduction of a free online tool for measuring household energy performance meant thousands of people completing their BASIX certificates online were being misled by green claims. NSW should participate in the national ''six star'' system for energy ratings, it said.
''I see a lot of clients [who] need to get compliance, so they'll tick the fluorescent lighting box because that's a cheap and easy one but they have no intention of keeping the fluoros in there,'' said Tracey Cools, the managing director of Efficient Living, an energy certifier. ''But they'll put them in at the time the certifier comes in there and does the check, and then they'll go back and put their halogens in because that's what they want … There's a lot of cheating that goes on around the DIY system.''
People are being led to believe they are building energy efficient homes but standards were higher in the rest of the country, she said. ''We're a huge way behind the rest of Australia.''
The policy manager of the association, Ross Maher, said there were many anecdotal reports of errors, including fundamental ones such as incorrect floor areas being given for houses, , suggesting a less-than-rigorous approach to filling out BASIX assessments.
Tuesday, September 6, 2011
Wednesday, August 24, 2011
The Block Auction Results
What is the main lesson from the failure to sell three of those four properties at auction? Surely it is that sensible people won't buy a property that's been renovated at the rush by a group of amateurs!
One problem with auction is that you have no cooling off period, so you need to inspect the property thoroughly before bidding. How can you do that when the renovations are still in progress under the watchful eye of the attendant television crew?
This blogger recently had a major home renovation done by a professional company with excellent results. A side benefit was that they brought to my attention significant, and clearly verifiable, problems in my old house of which I had been unaware. They offered solutions with no obligation to use them for rectification. I am sure that when, in some distant time in the future, I come to sell the property, my renovation money will have been well spent.
One problem with auction is that you have no cooling off period, so you need to inspect the property thoroughly before bidding. How can you do that when the renovations are still in progress under the watchful eye of the attendant television crew?
This blogger recently had a major home renovation done by a professional company with excellent results. A side benefit was that they brought to my attention significant, and clearly verifiable, problems in my old house of which I had been unaware. They offered solutions with no obligation to use them for rectification. I am sure that when, in some distant time in the future, I come to sell the property, my renovation money will have been well spent.
Thursday, August 11, 2011
House Price Trends
Mathew Quinn, the Managing Director of Stocklands, advised yesterday that the average size of a four-bedroom house has dropped 20 per cent since 2007 while three-bedroom houses have shrunk by 26 per cent over the same period, as living areas, media rooms and hallways disappeared in more compact designs.
Before this change, Sydney houses were amongst the most expensive in the world, and this was in part because they were the biggest in the world. According to Mr Quinn the average new home grew 10 per cent to a world record 215 square metres in the decade to 2009. Clearly this must have contributed to the sky high cost of Sydney housing!
The concrete used in housebuilding gives off a lot of carbon dioxide as it sets, so the trend to smaller houses will bring environmental benefits both during building and later, with lower energy consumption for heating and cooling the smaller houses.
Before this change, Sydney houses were amongst the most expensive in the world, and this was in part because they were the biggest in the world. According to Mr Quinn the average new home grew 10 per cent to a world record 215 square metres in the decade to 2009. Clearly this must have contributed to the sky high cost of Sydney housing!
The concrete used in housebuilding gives off a lot of carbon dioxide as it sets, so the trend to smaller houses will bring environmental benefits both during building and later, with lower energy consumption for heating and cooling the smaller houses.
Tuesday, June 14, 2011
Sydney House Prices "On the Way Up"
According to the Sydney Morning Herald, Sydney house prices rose over the April quarter and as auction clearance rates have recently consolidated, homeowners can expect house prices to rise over the May quarter.
The latest Australian Property Monitors research has revealed that Sydney house prices rose 1.1 per cent over the April quarter. This followed a fall in house prices of 0.6 per cent over the March quarter.
The biggest contributor to the April rise in house prices came from the top 25 per cent of the market, which increased by 5 per cent. The upper-middle price sectors rose by 1.7 per cent while the bottom 50 per cent of the market recorded no rise in median house prices over the April quarter.
The report continues:
Sydney median house price growth will continue to be driven by the influence of the underlying housing market fundamentals.
Rising incomes as a consequence of low unemployment and emerging shortages of skilled labour will provide buyers with increased incentive, capacity and confidence in the housing market. The Bureau of Statistics reports that Sydney's April unemployment rate was 5 per cent compared to 5.7 per cent a year ago; 42,280 jobs have been created over the past year in Sydney and NSW annual private sector incomes have increased by 4 per cent.
Increased demand for labour will be driven by the unprecedented resources boom driving through an estimated $380 billion investment in mining over the next five years.
The benefits of this strong economic growth will ripple throughout Australia, especially Sydney, as it re-energises as the commercial centre of Australia.
Growing population and increased immigration to meet skill shortages will continue to fuel demand for housing in a city already constrained by a tight rental market and chronically low levels of new home building.
According to the Real Estate Institute of NSW, the rental vacancy rate for suburbs within a 10-kilometre radius of the CBD fell 0.2 per cent to only 0.9 per cent in April. Sydney just has too many people and not enough houses, with no relief in sight.
Official interest rates are expected to remain on hold in the short-term as key measures of economic growth and inflation continue to remain within the Reserve Bank's neutral policy band. Mortgage interest rates and lending costs for new borrowers are currently under downward pressure as competition between banks intensifies as a consequence of dwindling credit growth.
With incomes rising, a shortage of housing and the pressure off interest rate rises in the short term, the fundamentals are signalling increased home buying activity in Sydney through 2011.
The latest Australian Property Monitors research has revealed that Sydney house prices rose 1.1 per cent over the April quarter. This followed a fall in house prices of 0.6 per cent over the March quarter.
The biggest contributor to the April rise in house prices came from the top 25 per cent of the market, which increased by 5 per cent. The upper-middle price sectors rose by 1.7 per cent while the bottom 50 per cent of the market recorded no rise in median house prices over the April quarter.
The report continues:
Sydney median house price growth will continue to be driven by the influence of the underlying housing market fundamentals.
Rising incomes as a consequence of low unemployment and emerging shortages of skilled labour will provide buyers with increased incentive, capacity and confidence in the housing market. The Bureau of Statistics reports that Sydney's April unemployment rate was 5 per cent compared to 5.7 per cent a year ago; 42,280 jobs have been created over the past year in Sydney and NSW annual private sector incomes have increased by 4 per cent.
Increased demand for labour will be driven by the unprecedented resources boom driving through an estimated $380 billion investment in mining over the next five years.
The benefits of this strong economic growth will ripple throughout Australia, especially Sydney, as it re-energises as the commercial centre of Australia.
Growing population and increased immigration to meet skill shortages will continue to fuel demand for housing in a city already constrained by a tight rental market and chronically low levels of new home building.
According to the Real Estate Institute of NSW, the rental vacancy rate for suburbs within a 10-kilometre radius of the CBD fell 0.2 per cent to only 0.9 per cent in April. Sydney just has too many people and not enough houses, with no relief in sight.
Official interest rates are expected to remain on hold in the short-term as key measures of economic growth and inflation continue to remain within the Reserve Bank's neutral policy band. Mortgage interest rates and lending costs for new borrowers are currently under downward pressure as competition between banks intensifies as a consequence of dwindling credit growth.
With incomes rising, a shortage of housing and the pressure off interest rate rises in the short term, the fundamentals are signalling increased home buying activity in Sydney through 2011.
Thursday, June 9, 2011
A Slow RBA Dawn
An article by Robert Gottliebsen in the Business Spectator starts with "Thank Goodness sanity prevailed in the Reserve Bank boardroom." He refers, of course, to the decision not to raise interest rates this month. The Reserve Bank is hopefully well aware of the devastating effect the November interest rate rise, and the associated media storm, had on the property world. That effect is continuing, and any further increase in interest rates could tip the market over the edge into a full housing price collapse.
The Reserve Bank statement talks up the mining boom, but Mr Gottliebsen argues they have not grasped the seriousness of the situation in non-mining Australia. Their statement does include "Growth in credit to households has softened, as have housing prices."
His article includes the sentence, "Tony Abbott and Julia Gillard are clashing horns over the carbon tax and both are missing the main issue."
The Reserve Bank statement talks up the mining boom, but Mr Gottliebsen argues they have not grasped the seriousness of the situation in non-mining Australia. Their statement does include "Growth in credit to households has softened, as have housing prices."
His article includes the sentence, "Tony Abbott and Julia Gillard are clashing horns over the carbon tax and both are missing the main issue."
Thursday, May 26, 2011
Immigrants saved Australia from Financial Crisis
An article by George Megalogenis provides a thought-provoking explanation for why Australia survived the Global Financial Crisis. In America, England, Spain, and so many other developed countries, it was the crash in house prices that triggered the collapse of the banks. But, as GM says, in his final two years as Prime Minister, John Howard initiated a flood of mainly Asian immigrants, such that Australia had the world's fastest population growth rate when the financial crisis hit in 2008.
"Take Howard's immigrants out of the equation and a recession would have been more likely. One of the things that set our economy apart from those of the United States and the United Kingdom was the behaviour of the property market. While their house prices collapsed - creating a vicious cycle of mortgage stress, reduced spending, and job losses - large scale immigration kept our house prices rising because supply was lagging demand. Ordinarily shortages would be read as a case of market failure, and they are. But they also played a valuable role in maintaining the confidence of Australian households to keep consuming while the rest of the developed world turned turtle."
"Take Howard's immigrants out of the equation and a recession would have been more likely. One of the things that set our economy apart from those of the United States and the United Kingdom was the behaviour of the property market. While their house prices collapsed - creating a vicious cycle of mortgage stress, reduced spending, and job losses - large scale immigration kept our house prices rising because supply was lagging demand. Ordinarily shortages would be read as a case of market failure, and they are. But they also played a valuable role in maintaining the confidence of Australian households to keep consuming while the rest of the developed world turned turtle."
Thursday, May 19, 2011
Big Four Aus Banks Credit Rating downgraded
Moody's last night downgraded the AA1 rating of Australia's big four banks to AA2, "relecting our view of the Australian banking system's structural sensitivity to conditions in wholesaly funding markets," according to Moody's senior vice-president Patrick Winsbury.
Australian banks are amongst the biggest users of wholesale funding, meaning they borrow huge amounts of money from abroad to make up the shortfall between what Australians deposit and what they want to borrow.
The subdued outlook for credit has reduced their funding needs, and the banks are taking steps to reduce reliance on wholesale funding.
Australian banks are amongst the biggest users of wholesale funding, meaning they borrow huge amounts of money from abroad to make up the shortfall between what Australians deposit and what they want to borrow.
The subdued outlook for credit has reduced their funding needs, and the banks are taking steps to reduce reliance on wholesale funding.
Wednesday, May 18, 2011
Government Population Strategy
The development group Urban Taskforce’s chief executive, Aaron Gadiel, says the Federal Government's sustainable population strategy released last Friday "avoids imposing any damaging population caps on the nation or on the major cities. We're pleased that the Federal Government has walked away from the notion that some parts of Australia are at carrying capacity".
However this seems rather to distort what the strategy actually says. The Federal Government focuses on boosting growth in regional areas and away from the outer suburbs of capital cities.
The report - Sustainable Australia, Sustainable Communities - does not set a population target, saying adopting one would limit the Government's ability to use the migration program to deal with skills gaps and labour shortages. However Population Minister Tony Burke says the strategy's focus is on where people live rather than setting an arbitrary figure for the size of the population.
Mr Burke says there are natural caps on growth such as the infrastructure and water-supply limits.
"There are natural limits to growth in Australia - it will never be a case of free-for-all," he said.
The report says a balance must be struck between the principles of economic sustainability, making communities livable and environmental sustainability.
Mr Burke says the Government is aiming to encourage business hubs in the outer suburbs and regional areas so people can find employment closer to home.
However this seems rather to distort what the strategy actually says. The Federal Government focuses on boosting growth in regional areas and away from the outer suburbs of capital cities.
The report - Sustainable Australia, Sustainable Communities - does not set a population target, saying adopting one would limit the Government's ability to use the migration program to deal with skills gaps and labour shortages. However Population Minister Tony Burke says the strategy's focus is on where people live rather than setting an arbitrary figure for the size of the population.
Mr Burke says there are natural caps on growth such as the infrastructure and water-supply limits.
"There are natural limits to growth in Australia - it will never be a case of free-for-all," he said.
The report says a balance must be struck between the principles of economic sustainability, making communities livable and environmental sustainability.
Mr Burke says the Government is aiming to encourage business hubs in the outer suburbs and regional areas so people can find employment closer to home.
House Prices "will be flat for ten years".
According to Jessica Darnbrough in the latest Real Estate Business magazine:
"Property price growth will be subdued for the next 10 years," an industry commentator has claimed. Speaking to Real Estate Business, BIS Shrapnel’s managing director Robert Mellor said property prices will grow by no more than 5 per cent each year.
“These are not boom conditions,” he said. “People have to get used to the fact that over the next 5 to 10 years, strong growth will be in the order of five per cent, while weaker years will see just 2 to 3 per cent growth.”
Mr Mellor said Australia is unlikely to see the rapid growth of previous years again anytime soon. “That growth was stimulated by various incentives, and as we are unlikely to see incentives return, we won’t see extraordinary growth return either."
"Property price growth will be subdued for the next 10 years," an industry commentator has claimed. Speaking to Real Estate Business, BIS Shrapnel’s managing director Robert Mellor said property prices will grow by no more than 5 per cent each year.
“These are not boom conditions,” he said. “People have to get used to the fact that over the next 5 to 10 years, strong growth will be in the order of five per cent, while weaker years will see just 2 to 3 per cent growth.”
Mr Mellor said Australia is unlikely to see the rapid growth of previous years again anytime soon. “That growth was stimulated by various incentives, and as we are unlikely to see incentives return, we won’t see extraordinary growth return either."
Monday, May 9, 2011
Rate Rises begin to bite
The Herald Sun reports that:
"ANZ Banking Group boss Mike Smith has revealed his growing concern at how rising interest rates are affecting the ability of some consumers to repay their loans.
He said yesterday poor credit quality was a concern because people were not paying off their credit cards.
Mr Smith's comments on ABC television follow Westpac chief Gail Kelly who, earlier last week, acknowledged a rise in consumer arrears, but said it was not at a level to cause the bank a loss.
Mr Smith said poor credit quality at this time was strange because it normally occurred during periods of rising unemployment.
He said it now appeared to be seasonally related, noting a little bit of a situation where people were going on holidays and not repaying the monthly debt on their credit cards.
"But I think that interest rates are beginning to hurt a little bit now, so the recent rises are beginning to bite," he said, adding that the Queensland floods had contributed to the issue."
Regarding exchange rates, Mr Smith said the Aussie dollar would continue to rise.
"I think we will see it move through $1.10 and get even stronger than that," he said.
"I can't see anything that will knock it off the perch because it's not only the strong Australian dollar, it's also the weak US dollar.
"When you think about what is happening in the States, I can't see them increasing rates for at least 18 months."
"ANZ Banking Group boss Mike Smith has revealed his growing concern at how rising interest rates are affecting the ability of some consumers to repay their loans.
He said yesterday poor credit quality was a concern because people were not paying off their credit cards.
Mr Smith's comments on ABC television follow Westpac chief Gail Kelly who, earlier last week, acknowledged a rise in consumer arrears, but said it was not at a level to cause the bank a loss.
Mr Smith said poor credit quality at this time was strange because it normally occurred during periods of rising unemployment.
He said it now appeared to be seasonally related, noting a little bit of a situation where people were going on holidays and not repaying the monthly debt on their credit cards.
"But I think that interest rates are beginning to hurt a little bit now, so the recent rises are beginning to bite," he said, adding that the Queensland floods had contributed to the issue."
Regarding exchange rates, Mr Smith said the Aussie dollar would continue to rise.
"I think we will see it move through $1.10 and get even stronger than that," he said.
"I can't see anything that will knock it off the perch because it's not only the strong Australian dollar, it's also the weak US dollar.
"When you think about what is happening in the States, I can't see them increasing rates for at least 18 months."
Thursday, April 21, 2011
Shift on Transport Issues
This post is from a correspondent to this blog:
Ministers responsible (in the new O'Farrell Coalition NSW Gov) for the difficult to solve land use & transport interaction problem in Sydney appear to realize that the 'culture of arrogance' (which can lead to deceit & manipulation), under which the NSW RTA has operated for far too long must end. Expensive major roads and so-called 'upgrades' presented as transport solutions are doomed to failure due to traffic induction which feeds into & causes congestion in supporting road networks.
Real solutions are only available from integrated public transport which is service oriented & for commuters is cost effective, easily accessed & safe. The North West Rail Link (NWRL) is an urgently needed solution as long overdue public transport infrastructure. Having previously represented the M2 impacted area of North West Sydney (as member for the former NSW seat of Northcott) Barry O'Farrell has the background knowledge to understand the urgent need for critical rail & supporting feeder bus infrastructure in NW Sydney.
Fortunately, his overwhelming victory in the recent 26 Mar NSW Elections has given the mandate to begin fixing the problems created by previous governments pursuing NO SOLUTION public policy outcomes often manipulated through the political decision making process as NSW RTA 'wish list' initiatives... The issue of political facilitators previously assisting road building vested interests needs to be addressed by a Royal commission with coercive powers.
The issue of OPTIMUM size for a large city like Sydney also needs proper inquiry under arrangements with full transparency.
Ministers responsible (in the new O'Farrell Coalition NSW Gov) for the difficult to solve land use & transport interaction problem in Sydney appear to realize that the 'culture of arrogance' (which can lead to deceit & manipulation), under which the NSW RTA has operated for far too long must end. Expensive major roads and so-called 'upgrades' presented as transport solutions are doomed to failure due to traffic induction which feeds into & causes congestion in supporting road networks.
Real solutions are only available from integrated public transport which is service oriented & for commuters is cost effective, easily accessed & safe. The North West Rail Link (NWRL) is an urgently needed solution as long overdue public transport infrastructure. Having previously represented the M2 impacted area of North West Sydney (as member for the former NSW seat of Northcott) Barry O'Farrell has the background knowledge to understand the urgent need for critical rail & supporting feeder bus infrastructure in NW Sydney.
Fortunately, his overwhelming victory in the recent 26 Mar NSW Elections has given the mandate to begin fixing the problems created by previous governments pursuing NO SOLUTION public policy outcomes often manipulated through the political decision making process as NSW RTA 'wish list' initiatives... The issue of political facilitators previously assisting road building vested interests needs to be addressed by a Royal commission with coercive powers.
The issue of OPTIMUM size for a large city like Sydney also needs proper inquiry under arrangements with full transparency.
Home Insulation Test Results
One in four homes inspected after the Federal Government's botched home insulation scheme had varying levels of safety risk and did not meet national building safety standards.
To quote Alison Rehn of the Daily Telegraph, "the disastrous $2.45 billion pink batts program" was axed 12 months ago following the deaths of four installers, many reported injuries, 205 house fires, and scores of complaints about shonky installations and dodgy operators.
Some 58,000 houses had foil insulation fitted. Because of the higher perceived hazard risk with this material, the Government committed to inspect every foil-fitted house, and of the 44,000 inspected so far nearly a third have had the insulation removed, and half of the rest needed safety switches installed.
About 1,100,000 homes had non-foil products installed, perceived to be less of a hazard. However of the 141,000 homes fitted with non-foil insulation products that were targeted for safety inspections, 34,000 (24%) did not comply with standards. The paper doesn't explain why the Government proposed only to inspect little more than ten percent of the houses with non-foil insulation. Perhaps now that the results are in, showing that 24% of those inspected are defective, they will reconsider, and should consider testing all the remaining 83,000 homes!
A number of legal claims are in the offing. One also wonders if anything is being done to compensate the poor honest businesses who stocked up on insulation material only to have the demand slashed by the cancellation of the program.
Alison's word, "disastrous", is certainly appropriate.
To quote Alison Rehn of the Daily Telegraph, "the disastrous $2.45 billion pink batts program" was axed 12 months ago following the deaths of four installers, many reported injuries, 205 house fires, and scores of complaints about shonky installations and dodgy operators.
Some 58,000 houses had foil insulation fitted. Because of the higher perceived hazard risk with this material, the Government committed to inspect every foil-fitted house, and of the 44,000 inspected so far nearly a third have had the insulation removed, and half of the rest needed safety switches installed.
About 1,100,000 homes had non-foil products installed, perceived to be less of a hazard. However of the 141,000 homes fitted with non-foil insulation products that were targeted for safety inspections, 34,000 (24%) did not comply with standards. The paper doesn't explain why the Government proposed only to inspect little more than ten percent of the houses with non-foil insulation. Perhaps now that the results are in, showing that 24% of those inspected are defective, they will reconsider, and should consider testing all the remaining 83,000 homes!
A number of legal claims are in the offing. One also wonders if anything is being done to compensate the poor honest businesses who stocked up on insulation material only to have the demand slashed by the cancellation of the program.
Alison's word, "disastrous", is certainly appropriate.
Wednesday, April 13, 2011
Incentives Hurt Housing Market
A stimulating article on the back page of the Australian on Monday 11 April by David Uren starts by saying "Demand for homes is falling and the supply is rising." Interesting items in the article include: "First home buyer grants, variable rate mortgages and capital gains tax concessions all served to destabilise housing markets." "The Australian housing market is in a worse state than is widely understood. Demand is falling, supply is rising, and the monthly turnover is drifting lower." "There were a record 260,000 properties advertised for sale in the four weeks to 3 April, 24.1% more than a year ago when the market was booming." Monthly sales peaked in May 2010 at 37,500, and by December 2010 were down to 27,500. That translates to over nine months supply of houses on the market. Later David argues: "Australia's property investors are driven by capital gain, not by rental yield. With the increasing weakness in the capital gain outlook, investors are deserting the market." The point about variable rate mortgages is interesting. "People are encouraged to enter the market during periods of low interest rates without fully appreciating the interest rate risk they are taking on."
Friday, March 25, 2011
Residents dismayed by High Rise plan
Residents around Whiteside Ave North Ryde protested in the streets last Sunday about a proposal to develop a site opposite the Optus building to take 270 units in an area currently restricted to two storeys.
The proposal is to build five structures ranging from three to eleven stories! Of course the developer is hoping to use the Labor government's Part 3A powers to approve this.
Victor Dominello, State Liberal MP for Ryde, said that if the Liberals win government at the election this Saturday, one of the first tasks will be to review all outstanding applications submitted under Part 3A.
The proposal is to build five structures ranging from three to eleven stories! Of course the developer is hoping to use the Labor government's Part 3A powers to approve this.
Victor Dominello, State Liberal MP for Ryde, said that if the Liberals win government at the election this Saturday, one of the first tasks will be to review all outstanding applications submitted under Part 3A.
Tuesday, March 22, 2011
Barangaroo Remediation
Extracted from 7 News, by Caris Bizzaca:
NSW Premier Kristina Keneally is under siege from the Opposition, Greens and action groups who say the government has undermined a court case by exempting Sydney's Barangaroo site from environmental laws.
Planning minister Tony Kelly on Wednesday gazetted an order that effectively excises Barangaroo from his department's own planning laws for managing contamination, just days before the government goes into caretaker mode ahead of the state election.
The Sydney Harbour site is at the centre of a case in the Land and Environment Court being pursued by Australians for Sustainable Development (AfSD), a group concerned about contaminated subsoil.
Opposition spokesperson for planning Brad Hazzard said on Thursday it was an "abuse of process".
"The signature on the planning document may be Tony Kelly's but Kristina Keneally's fingerprints are all over it," he said in a statement.
"In September, Ms Keneally confirmed that she was, 'taking direct responsibility and control of Barangaroo' - so there's no ducking that this rotten act is all hers.
"This is an abuse of process and Kristina Keneally is in it up to her eyeballs showing that NSW Labor has no respect for the rule of law and the NSW community."
But Ms Keneally denied she was behind the order.
"This is a planning decision," she said while campaigning in Sydney.
"I am not the minister for planning."
Ms Keneally, who assumed ministerial responsibility for the $6 billion project last September, said she heard about Mr Kelly's action on Wednesday and spoke with him on Thursday morning.
She defended Mr Kelly saying he had simply made a "technical clarification".
NSW Premier Kristina Keneally is under siege from the Opposition, Greens and action groups who say the government has undermined a court case by exempting Sydney's Barangaroo site from environmental laws.
Planning minister Tony Kelly on Wednesday gazetted an order that effectively excises Barangaroo from his department's own planning laws for managing contamination, just days before the government goes into caretaker mode ahead of the state election.
The Sydney Harbour site is at the centre of a case in the Land and Environment Court being pursued by Australians for Sustainable Development (AfSD), a group concerned about contaminated subsoil.
Opposition spokesperson for planning Brad Hazzard said on Thursday it was an "abuse of process".
"The signature on the planning document may be Tony Kelly's but Kristina Keneally's fingerprints are all over it," he said in a statement.
"In September, Ms Keneally confirmed that she was, 'taking direct responsibility and control of Barangaroo' - so there's no ducking that this rotten act is all hers.
"This is an abuse of process and Kristina Keneally is in it up to her eyeballs showing that NSW Labor has no respect for the rule of law and the NSW community."
But Ms Keneally denied she was behind the order.
"This is a planning decision," she said while campaigning in Sydney.
"I am not the minister for planning."
Ms Keneally, who assumed ministerial responsibility for the $6 billion project last September, said she heard about Mr Kelly's action on Wednesday and spoke with him on Thursday morning.
She defended Mr Kelly saying he had simply made a "technical clarification".
Friday, March 18, 2011
Property as an Asset
A really interesting article in The Economist 5th March starts by saying "Property is widely seen as a safe asset. It is arguably the most dangerous of all."
The article, by Andrew Palmer, includes some interesting thoughts:
People buy property for various reasons, but dominant amongst those motives is financial gain. This mixture of motives can be toxic for financial stability. If housing were like any other consumer good, rising prices should dampen demand. But with property, higher prices are seen as a signal to buy. What happens if prices start to drop?
The value of any particular home is set by the latest local transactions. One absurd bid can push up prices for lots of people living nearby. But has it changed the intrinsic value of those properties?
An analysis shows that in America for the past 30 years renting was better financially than buying (but only if the renter meticulously saves the difference between the rent and what a mortgage would be costing).
The article, by Andrew Palmer, includes some interesting thoughts:
People buy property for various reasons, but dominant amongst those motives is financial gain. This mixture of motives can be toxic for financial stability. If housing were like any other consumer good, rising prices should dampen demand. But with property, higher prices are seen as a signal to buy. What happens if prices start to drop?
The value of any particular home is set by the latest local transactions. One absurd bid can push up prices for lots of people living nearby. But has it changed the intrinsic value of those properties?
An analysis shows that in America for the past 30 years renting was better financially than buying (but only if the renter meticulously saves the difference between the rent and what a mortgage would be costing).
Thursday, March 17, 2011
John McGrath Hates Underquoting
John McGrath's blog of 12 April 2010, responding to a question about underquoting, says:
"Hey Sonja, I agree, it's a pet hate of mine too. Guides should reflect the Agent's opinion and the Vendor's expectation. I hope it wasn’t a sale connected with our firm but if it was please let me know so I can look at it right away. John McGrath."
John, you should check out the 14 Allerton sale last month. Quote price $900,000, sale price $1,117,000, 24% over guide! Yet a comparable house next door sold a year ago for $1,116,000 so luckily for Wayne this one sold below market price.
While you are at it, John, check out all the other recent Wayne Vaughan sales:
8 Dennistone Rd Eastwood 20% over guide.
17 Railway Ave Eastwood 19% over guide.
55 Eastview Ave N Ryde 19% over guide.
74 Ray Road Epping 14% over guide.
24 Angus Avenue Epping 12% over guide.
He almost got 1/17 Pinner Close N Epping right, only 9% over guide.
Wayne is in good company though, Betty Ockerlander of Better Homes clocked up:
41 Stanley Rd Epping 18% over guide.
30 Surrey St Epping 17% over guide.
28 Cecil St Dennistone E 16% over guide.
Come on, OFT, protect the buyers. Let's see some prosecutions to stamp out this pernicious practice. Unfortunately the maximum fine is only $22,000, which is less than the commission, but the OFT can take away the licence of repeat offenders.
Wayne is now being investigated by OFT, so will have to be careful not to sell any of his present under-quoted listings for the correct market price, or he could lose his licence. An interesting problem for an agent, trying to persuade buyers to settle below market price!
"Hey Sonja, I agree, it's a pet hate of mine too. Guides should reflect the Agent's opinion and the Vendor's expectation. I hope it wasn’t a sale connected with our firm but if it was please let me know so I can look at it right away. John McGrath."
John, you should check out the 14 Allerton sale last month. Quote price $900,000, sale price $1,117,000, 24% over guide! Yet a comparable house next door sold a year ago for $1,116,000 so luckily for Wayne this one sold below market price.
While you are at it, John, check out all the other recent Wayne Vaughan sales:
8 Dennistone Rd Eastwood 20% over guide.
17 Railway Ave Eastwood 19% over guide.
55 Eastview Ave N Ryde 19% over guide.
74 Ray Road Epping 14% over guide.
24 Angus Avenue Epping 12% over guide.
He almost got 1/17 Pinner Close N Epping right, only 9% over guide.
Wayne is in good company though, Betty Ockerlander of Better Homes clocked up:
41 Stanley Rd Epping 18% over guide.
30 Surrey St Epping 17% over guide.
28 Cecil St Dennistone E 16% over guide.
Come on, OFT, protect the buyers. Let's see some prosecutions to stamp out this pernicious practice. Unfortunately the maximum fine is only $22,000, which is less than the commission, but the OFT can take away the licence of repeat offenders.
Wayne is now being investigated by OFT, so will have to be careful not to sell any of his present under-quoted listings for the correct market price, or he could lose his licence. An interesting problem for an agent, trying to persuade buyers to settle below market price!
Wednesday, March 16, 2011
Fair Trading disqualifies agents
Two central coast real estate agents have had their licenses revoked by NSW Fair Trading.
Kevin Barnes and Nicole Mars were disqualified from practising as estate agents for 10 and six years respectively, after the duo were found to have obtained $500,000 profit in a property sale.
Fair Trading took action against the pair after a compliant came through from Housing NSW concerning the sale of a property at 1-3 Walmsley Road, Ourimbah.
Fair Trading deputy commissioner Steve Griffin said Fair Trading would continue to take decisive action when real estate agents and businesses acted inappropriately in putting their own interests before that of their clients.
Nice to see Fair Trading showing teeth! There is a great need for this in the real estate industry!
Kevin Barnes and Nicole Mars were disqualified from practising as estate agents for 10 and six years respectively, after the duo were found to have obtained $500,000 profit in a property sale.
Fair Trading took action against the pair after a compliant came through from Housing NSW concerning the sale of a property at 1-3 Walmsley Road, Ourimbah.
Fair Trading deputy commissioner Steve Griffin said Fair Trading would continue to take decisive action when real estate agents and businesses acted inappropriately in putting their own interests before that of their clients.
Nice to see Fair Trading showing teeth! There is a great need for this in the real estate industry!
Friday, March 11, 2011
McGrath Underquoting Again
No doubt the large crowd at the auction of 4 Allerton Road Beecroft were surprised when the advertised price of "Guide over $900,000" resulted in an auction with 69 bids! The first wildly optimistic bid was for $875,000. Bidding then leapt away in $25,000 steps until finally a realistic market sale price of $1,117,000 was reached, 25% above the McGrath Guide Price.
A newly listing vendor says that they went with McGrath because they explained to her that this is their technique. Once people have paid to do building and pest inspections for a property that seems to be a bargain, they will come to the auction and might continue bidding way beyond the limit they had set themselves. Great policy for the vendors, but unkind to the poor buyers who spend their money with no prospect of buying the property.
It is actually also against the law. Trouble is, the Fair Trading Minister's people typically fine the agency $2,200 which is seen as just a trivial tax on a sale which realises commission of $24,000 or more. Apparently the maximum fine is $22,000, so still just matching commission. So the only real threat is loss of licence, which penalty should be applied for repeat offenders!
It's amusing that in 2008, when McGrath was fined for this, John McGrath's response was "I'm obviously disappointed. We've had a great reputation for the exact opposite of this," and no doubt smiled as he said "I think the only thing we're guilty of is achieving a good price for our vendors." Or to put it another way, "Bugger the Buyers". But it's not a fair comment anyway, because a nearly identical property next door sold nearly a year ago for $1,116,000, so the McGrath sale price was at best market value.
Read more: http://www.news.com.au/business/real-estate-agents-busted-for-low-quotes/story-e6frfm1i-1111116430288#ixzz1GFhh9Skd
A newly listing vendor says that they went with McGrath because they explained to her that this is their technique. Once people have paid to do building and pest inspections for a property that seems to be a bargain, they will come to the auction and might continue bidding way beyond the limit they had set themselves. Great policy for the vendors, but unkind to the poor buyers who spend their money with no prospect of buying the property.
It is actually also against the law. Trouble is, the Fair Trading Minister's people typically fine the agency $2,200 which is seen as just a trivial tax on a sale which realises commission of $24,000 or more. Apparently the maximum fine is $22,000, so still just matching commission. So the only real threat is loss of licence, which penalty should be applied for repeat offenders!
It's amusing that in 2008, when McGrath was fined for this, John McGrath's response was "I'm obviously disappointed. We've had a great reputation for the exact opposite of this," and no doubt smiled as he said "I think the only thing we're guilty of is achieving a good price for our vendors." Or to put it another way, "Bugger the Buyers". But it's not a fair comment anyway, because a nearly identical property next door sold nearly a year ago for $1,116,000, so the McGrath sale price was at best market value.
Read more: http://www.news.com.au/business/real-estate-agents-busted-for-low-quotes/story-e6frfm1i-1111116430288#ixzz1GFhh9Skd
Thursday, March 10, 2011
Back on the Gas
On the front page of the Northern District Times this week is an article about an independent petrol station starting up again on the corner of Blaxland and Lovell Roads in Eastwood. The demise of independent petrol stations has been a sad result of Coles and Woolworth discounting, and it is a real pleasure to see a movement to open some of them up again.
Subscribe to:
Posts (Atom)