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

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

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

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

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 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

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 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 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