Aron Cox

The Importance of Having a Valid Will

Mon, 23 Apr 2012 09:39:00 GMT

1. You control the choice of persons who administer your Estate.

2. You control how your assets will be distributed upon your death and thereby, as far as possible, avoid a distribution according to the laws of intestacy.

3. The control over the distribution of your assets is far more important if you are in a de facto relationship, which currently receives no recognition under the laws of Western Australia.

4. Any prior Will that you may have is not invalidated by divorce and it is therefore important that a new Will be drafted to reflect your current situation.

5. If you have children under the age of 18 years, you decide who is to be appointed as the guardian.

6. You can give directions on the disposition of your body and on organ donation.

7. The administration of an estate where there is a valid Will covering all assets is generally faster and less costly than the administration of an estate without a valid Will.

Anton Hugh Puzey BA LLB

Barrister & Solicitor

In association with

Alison & Associates (Legal) Pty Ltd.

Email: anton@alisonlegal.com.au

AUSTRALIANS WANT TO BUY NOW

Wed, 18 Apr 2012 00:59:00 GMT

More than 40 per cent of Australians believe 2012 is the best time to purchase a residential property.

According to QBE LMI’s latest mortgage report lmiBAROMETER, more than 60 per cent of Australians intend to buy property in the next three to five years.

QBE LMI chief executive Jenny Boddington said these survey results prove there is still a good appetite for residential property, despite global uncertainty.

“Despite the ongoing global uncertainty and lower sentiment among borrowers, our lmiBAROMETER confirms that Australians intend to continue purchasing properties and 55 per cent believe it is important to get into the market now, rather than later,” she said.

Ms Boddington said the rate cuts at the end of last year have helped promote residential property and encourage first home buyers to jump into the market as quickly as possible.

“The first home buyers segment, who are typically younger, expect an average deposit of 12.2 per cent of the property purchase price and 39 per cent agree it is more important to get into the market now than wait and save for a bigger deposit,” she said

THE ADVISER

INVESTORS EYE WA

Wed, 11 Apr 2012 06:30:00 GMT

Investors are returning to Western Australia’s property markets as stabilising property prices and strong rental returns provide strong buying opportunities.

According to Rael Bricker, managing director of WA-based mortgage broker House + Home Loans, there hasn’t been a better time to buy in years.

“Investors are definitely back buying. They’ve worked out that the market has bottomed out and that from here on in it is a buyer’s market,” he said.

With new data revealing that a growing rental squeeze is gripping the state, local real estate is once again very alluring as an investment class, Mr Bricker said.

“There is a very strong level of investor enquiry and activity at the moment. We as a business have never been busier, with $30 million worth of loan settlements recorded in January,” he said.

“Back in 2007 we had a massive spike in property prices – values rose by 46 per cent in just one year.

“Suddenly properties delivering rental returns of 5 per cent were delivering yields of just 2.5 or 3 per cent – so investors shied away. They couldn’t afford the shortfall.

“Now there is stability in the market and very strong rental demand off the back of the momentum in resources, with yields back up to 4.5 to 5 per cent.”

Median weekly rents in the Perth metropolitan area have jumped 8.1 per cent to $400 in the past year according to data from the Real Estate Institute of Western Australia.

Also an undersupply of properties is causing rental prices to rise, with the metropolitan vacancy rate shrinking to 2.3 per cent.

The latest figures from RP Data also confirm that Perth property prices are stabilising. The city’s median price contracted just 4.6 per cent in the year ending February 2012 to $446,000, with a 0.8 per cent improvement over the most recent quarter.

STEVEN CROSS THE ADVISER

HOME BUYER CONFIDENCE BOUNCES BACK

Wed, 21 Mar 2012 23:49:00 GMT

More than one third of potential home buyers believe now is a great time to jump onto the property ladder.

According to the Latest Genworth Homebuyer Confidence Index, 39 per cent of homebuyers said they would buy now, as homebuyer confidence bounced back to levels not seen since this time last year.

Genworth chief executive officer Ellie Comerford said a drop in mortgage stress had helped to drive homebuyer confidence – with just one in five people now experiencing mortgage stress.

As per the Index, 22 per cent of homeowners are experiencing mortgage stress, slightly lower than the 25 per cent recorded in September 2011.

“While cost of living pressures and an increase in unemployment are likely to strain households, currently these problems are being offset by positive factors such as wage growth, low inflation and interest rate cuts,” Ms Comerford said.

First Home Buyers were also doing well, with 86 per cent easily meeting, or even overpaying their mortgage in the last 12 months - well above the 78 per cent average.

But while the result was positive, research director of RFi, Alan Shields said it wasn’t surprising.

“If they made a commitment to a mortgage in the last few months, then why wouldn’t they be prepared to pay it off?” he said

THE ADVISER

Majors losing ground to smaller banks

Wed, 14 Mar 2012 09:16:00 GMT

Australia’s non-majors are taking market share from the big banks with a sharp spike in business going to the smaller lenders, according to one aggregator.

Speaking to The Adviser, AFG's NSW state manager Chris Slater said Suncorp Bank, Citibank, ING DIRECT and AMP Bank had all dramatically increased their volumes over the past month.

“Macquarie has literally doubled their volumes with us over the past month. Similarly, Suncorp’s numbers are now really strong as are AMP’s,” he said.

“Citibank has had a really strong couple of months also.”

Mr Slater said ANZ’s decision to move out of cycle from the Reserve Bank had definitely prompted borrowers to check out the alternatives available to them.

“Consumers are starting to look for alternatives. The majors have copped a lot of flack in the media and the non-majors are benefiting,” he said.

“In addition, I think a lot of the discounting that the majors were doing has slowed down, which is helping to make the non-majors rates more competitive.

“They are definitely helping to keep competition alive.”

Last month, Australia’s non-majors accounted for 23.9 per cent of all loans written – far higher than the 17 per cent recorded half way through 2011.

THE ADVISER

Brokers see surge in First Home Buyers

Wed, 29 Feb 2012 01:11:00 GMT

A broker poll has found refinancers and first homebuyers are driving the housing finance market in 2012.

The Loan Market poll asked brokers which group they have received the highest number of enquiries from since the beginning of the year. Forty-one per cent of the company's brokers tipped first homebuyers as most active. A Loan Market spokesperson claimed the surge of first homebuyer activity came after a "subdued" 2011 in which potential buyers built up their savings.

"The enquiries from first homebuyers this year are largely made up buyers with significant savings and thorough awareness of the lending landscape," he said.

While respondents to the poll most commonly pointed to first time buyers as the main drivers of activity, 36% said refinancers had provided the most enquiries. Twenty per cent said property investors had been most active, while only 3% pointed to self-employed borrowers.

AUSTRALIAN BROKER NEWS

BORROWERS BANKING ON FEBRUARY RATE CUTS

Wed, 01 Feb 2012 22:48:00 GMT

Borrowers are anticipating yet another rate cut when the RBA meets next week, echoing the sentiments of most economists.

A Loan Market survey has found two-thirds of respondents believe the Reserve will once again take the knife to rates when it meets on February 7. Thirty-nine per cent are forecasting another 25bp cut, while 27% expect a deeper 50bp cut. Loan Market COO Dean Rushton said still more needs to be done to stimulate the economy following the RBA's successive rate cuts at the end of last year.

"The RBA lowering rates in November and December last year was an appropriate course of action which was a welcome relief for borrowers and struggling sectors such as retail, but there are no signs of an improvement in the current global economic environment, particularly the volatile situation in Europe. While the fundamentals of the Australian economy remain quite strong and consumer sentiment has improved, sections of the economy can benefit from the stimulus provided by more interest rate cuts," Rushton said.

The question remains, however, whether an RBA cut would see immediate benefits for consumers. NAB chief executive Cameron Clyne has added to the chorus of bankers flagging bank inaction following the next RBA cut, telling radio station 3AW there was "no correlation" between the RBA cash rate and the bank's cost of funds.

by ADAM SMITH - AUSTRALIAN BROKER NEWS

LANDLORDS ENJOY HIGHER RENTAL DEMAND

Wed, 18 Jan 2012 23:38:00 GMT

Demand for rental properties has pushed rents higher once again, new data has revealed.

According to the latest statistics from Australian Property Monitors, house and unit rentals have resumed upward growth after flat results over the previous two quarters.

National median weekly asking rents for houses rose by 1.1 per cent in the December quarter, with rents for units rising by 1.4 per cent.

Most capital cities recorded house rental rises over the quarter with Canberra up by 6.4 per cent, Brisbane up 2.7 per cent, Perth up 2.6, Adelaide up 1.5 per cent and Sydney up 1.0 per cent.

Melbourne, Darwin and Hobart however recorded flat results with no increases in median asking weekly house rentals over the December quarter.

Speaking about the results, Australian Property Monitors senior economist Andrew Wilson said the Sydney, Perth and Canberra rental markets have been characterised by chronically low vacancy rates and, with ongoing low levels of new construction, this situation is expected to continue with upward pressure on rentals.

"The Brisbane rental market also remains highly competitive for tenants reflecting ongoing consequences of the devastating floods of early 2011 and the slow progress of reconstruction," he said.

"Melbourne continues to be Australia's most tenant-friendly rental market with a wider choice of properties courtesy of nation-leading dwelling construction and no growth in rentals for both units and houses over the December quarter.

"By contrast house rentals in Canberra rose by 6.4 per cent over the year with Perth up by 5.3 per cent, Sydney up 4.2 per cent and Brisbane up by 2.7 per cent."

But while rental demand was high in Sydney, Canberra, Perth and Brisbane last quarter, Mr Wilson said he expected demand and price growth to peak in 2012.

"Peaking housing affordability as the price cycle bottoms out, combined with a strengthening economy will facilitate increased buyer activity in Sydney, Perth, Brisbane, Canberra and Darwin through 2012 that will take some pressure off the rental markets in these capitals," he said. THE ADVISER

INVESTORS EYE MARKET RETURN

Mon, 16 Jan 2012 02:52:00 GMT

Investors are expected to slowly return to the property market, one industry stakeholder has claimed.

Interest rate cuts and more affordable housing are likely to encourage investors to re-enter the property market according to Property Buyer Rich Harvey.

"We are starting to see investors make small moves, thanks to the latest rate cuts," he said.

"However, that said, we have only had two rate cuts and I don't think that will be enough to really drive the market. Back in the 1990s, we had cuts of 1 to 1.5 per cent, which moved the market quite dramatically.

"So while investors will come back into the market, they won't rush back in overnight."

THE ADVISER

First Home Buyers to DOMINATE in 2012

Tue, 10 Jan 2012 07:12:00 GMT

First home buyers are expected to be the most active player in the Australian home finance market during 2012, a national survey has found.

According to a recent poll by Loan Market Group, 36 per cent of brokers expect first home buyers to dominate the housing finance market this year.

Of the 252 respondents, 33 per cent said investors would be the dominant market segment, while 30 per cent said it would be refinancers.

“Our brokers are divided on which consumer group will dominate in 2012 but the majority think first home buyers will be the most active,” Loan Market chief operating officer Dean Rushton said.

Mr Rushton said first home buyers were the consumer group to re-emerge from hibernation during 2011, spurred on by the Reserve Bank of Australia lowering the official cash rate twice during the final quarter of the year.

“2011 was a savings year for many potential home owners and with the likelihood of further interest rate reductions and softened property prices, 2012 appears to be primed for first home buyers to enter the market,” he said.

Mr Rushton said investors were another growing market force and there was evidence last year of first home buyers also targeting investment properties as their entry point to the property market.

“Refinancing activity is also set to continue in 2012 with borrowers having a greater capacity to switch lenders and secure a better deal,” he said.

“There can be as much as a percentage point difference between the variable home mortgage rates currently on offer and people are starting to realise it’s worth shopping around.”

The Adviser

DARWIN TO BOOM IN 2012

Mon, 09 Jan 2012 01:46:00 GMT

The Darwin property market is preparing for another boom as offshore gas projects gather steam and lift investment confidence.

Analysts believe the Icthys project will send the Darwin property market into overdrive after the city's median house price dropped 3.7 per cent in the year to November.

In fact, the top end is already starting to make a comeback, with research from RP Data showing home values in the capital city grew 0.3 per cent in the three months to November 2011, taking the median dwelling price to $456,000.

According to RP Data's research director Tim Lawless, Darwin remains one of the more resilient capital cities and he doesn't expect this to change in 2012.

"Housing market conditions are starting to show some green shoots now, at least at a macro level."

THE ADVISER

INVESTORS REAP REWARDS OF TIGHT RENTAL MARKET

Fri, 30 Dec 2011 01:04:00 GMT

Property investors will do well in 2012 on the back of the same tight vacancy rates and soaring rents they enjoyed in 2011, a research company has claimed.

“With regard to rents, 2011 has been a landlords’ market with rents nationwide recording rises of 4.6 per cent-plus, according to the Australian Bureau of Statistics (ABS),” managing director of SQM Research, Louis Christopher, said.

“Sydney has recorded the fastest [rising] rents while Melbourne has been at the other end of the spectrum with zero rental growth, and in some areas rental declines.

“I expect 2012 to be somewhat the same with possibly another five plus per cent increase,” he added.

Figures released recently by SQM Research revealed that residential vacancies rose slightly during the month of November, increasing by 0.1 per cent to 1.9 per cent. This brings the total number of vacancies for November to 48,244 nationally.

Canberra remains the nation’s tightest rental market, recording a vacancy rate of just 0.6 per cent for the month of November, with a total of 294 properties.

This was closely followed by Perth, where renters have to choose from just 1,208 properties, leading to a vacancy rate of 0.8 per cent.

At the other end of the spectrum was Melbourne, whose vacancies continued to increase from month-to-month, and are largely considered to be experiencing an over supply of property, SQM Research said.

The capital city recorded a vacancy rate of 3.4 per cent for the month of November, with a total of 12,367 vacancies.

“Melbourne’s high levels of sale stock also further confirm that the city is currently undergoing an oversupply issue,” SQM Research said in a monthly report.

“Coming off the building boom that occurred in 2009 and 2010, the city has many ‘newly completely’ and ‘currently being constructed’ dwellings, but unfortunately not enough demand to meet the high levels of stock available.”

“This problem is being intensified by a generally cautious consumer attitude towards residential property at the present moment. Many individuals are deciding to stay at home in order to keep costs at a minimum or save, and even those who are currently interested in purchasing homes are opting for less expensive alternatives and are choosing older dwellings verses brand new or off-the-plan residences,” the report concluded.

Hobart recorded the largest yearly growth of the capital cities, increasing by 0.9 per cent to 1.9 per cent in November 2011, when compared to same period of the previous year.

Darwin has recorded the most substantial yearly falls, decreasing by 0.9 per cent since the corresponding period of the previous year to record a vacancy rate of 1.3 per cent in November.

Sydney’s rental vacancy rate increased by 0.2 per cent month-on-month and year-on-year to 1.5 per cent in November.

Matthew Sullivan – The Adviser

Property Outlook Brightens

Fri, 23 Dec 2011 00:19:00 GMT

The property market has been tipped for an upswing in the New Year on the back of stronger domestic economic performance.

Speaking to The Adviser, Australian Property Monitors senior economist Andrew Wilson said the property market should undergo a "modest recovery" in 2012, resulting in greater lending and borrowing activity.

"Our strong economy will help our property market enter a modest recovery," he said.

"OECD is reflecting 4 per cent growth over the year, which is above trend and very good especially when compared to other countries around the globe."

On the back of this strong growth, Mr Wilson said he expects Australians to start spending again.

"They will definitely think about spending. They have been saving like crazy for the past 18 months and they have, in some instances, forgotten how to spend. But, I think confidence will return and, as it does, so will spending habits."

"Moreover, the skills shortage in key areas will drive immigration, which will ultimately drive new buyers into the market – helping 2012 to become the year of recovery."

PROPERTY PRICES TO GROW BY 5 PERCENT IN 2012

Thu, 15 Dec 2011 02:08:00 GMT

After a pessimistic year in most housing markets across the country, the outlook for 2012 is generally a return to growth, according to Australian Property Monitors' annual State of the Market Report.

Despite earlier signs of growth, a sustained spring revival in buyer activity failed to materialise.

In the quarter to October, national median house prices fell by 1.6 per cent and were down by 4.2 per cent over the year.

But, looking forward, the news isn't all bad.

Australian Property Monitors senior economist Andrew Wilson said 2012 will be a mixed bag when it comes to housing, with some capital cities set to revive strongly while others will remain flat.

Darwin, Perth and Brisbane have the best prospects for price growth, while Sydney and Canberra are also expected to achieve reasonable growth in the year.

Nationally speaking, Mr Wilson said property prices should grow somewhere between 3 and 5 per cent.

Meanwhile, Brisbane, Darwin and Perth are all expected to achieve growth between 5 and 10 per cent.

Melbourne and Adelaide on the other hand, are only expected to achieve growth of 3 per cent.

"Demand for housing will intensify in 2012, particularly in Sydney, Canberra and Perth, which will see housing markets reenergised albeit at different levels," Mr Wilson said.

"Australia's economic fundamentals are strong, and are well positioned to weather any downturn in international markets. This coupled with renewed buyer confidence, will be the key to driving prices growth in the New Year

THE ADVISER

FIRST HOME BUYERS DOMINATE HOUSING ENQUIRIES

Wed, 09 Nov 2011 03:12:00 GMT

First home buyers have come out of hibernation to dominate housing finance enquiries, new research has revealed.

According to Loan Market Group, enquiries from first time buyers have hit their highest level in two years – representing 51 per cent of total enquiries.

Loan Market chief operating officer Dean Rushton said enquiries from first home buyers to the brokerage during October were strong in every state and territory.

Tasmania had the highest number of enquiries with 71 per cent followed by Queensland on 54 per cent, Victoria 53 per cent, the Australian Capital Territory 50 per cent, South Australia 48 per cent, Western Australia 44 per cent and the Northern Territory 41 per cent.

“After a few years of hibernation, first home buyers are back and are now the dominant section of the market for enquiry,” Mr Rushton said.

“A more favourable interest rate climate, helped by the latest RBA rate cut, is one reason first home buyers have re-emerged.”

Mr Rushton said the end of stamp duty concessions for first home buyers in New South Wales from the end of 2011 are boosting activity in that state.

“The softer real estate market is another encouragement for first time buyers if they are in a position to be active in the market,” he said.

“We’re finally starting to see signs of optimism and more confidence from that segment of the market. And predicted further rate cuts from the RBA would help to build that confidence.”

Staff Reporter - THE ADVISER