Property News Australia.com.au

Up - better - brighter… at least in the Australian Property Front.  Spring has sprung, will Summer heat things up?

Here are some high points gleaned from various sources -

“Investors are coming back to the Australia and New Zealand Property market” according to Harcourts International’s Managing Director, Mike Green.

“Home Prices Rose in the September quarter” according to Australian Property Monitors

“Rents Are Rising across the country” says Chris Zappone of The Age

“Residential Property prices in Australia are at a six year high” Property Wire report to its readers.

HISTORY

European Discovery

Norfolk island is a small volcanic island 8×5kms lying in the Pacific Ocean about 1,600km of Sydney Australia. There are 2 small islands to the South, Nepean (a limestone islet approx 4 hectares in extent) and Philip, a volcanic island 2 kms long.

Captain Cook discovered Norfolk Island on 10 October 1774 on his second voyage around the world on the HMS Resolution. He described the island as “paradise” and named it Norfolk Isle, in honour of that Noble family. Part of Cook’s diary ” we found the island uninhabited and near a kin to New Zealand, the flax plant, many other plants and trees common to that country was found here but the chief produce of the isle is spruce pines which grow here in vast abundance and vast size, different sort to those in New Calendonia and also to those in New Zealand and for Masts, Yards &ca superior to both”

Polynesian Settlement

Over 1000 years ago, there is now some evidence that Norfolk was settled by Polynesian people, sailing the Pacific, and who lived on the island prior to Cook’s discovery. Excavation work was carried out near to Emily Bay during 1995-1999 and materials such as tools were discovered.

Convict Era’s
In 1786 Lord Sydney, Secretary of the Home Office advised that because of over crowding in the English gaols it had been decided to rid that country immediately of prisoners under sentence or order of transportation. On the 6 March 1788 Phillip Gidley King Superintendent and commandant arrived on Norfolk Island on the Supply to begin the first European settlement. There were 7 free men, 9 male and 6 female convicts with six month’s provisions. The group set about clearing the land, building houses, sowing crops and husbanding livestock. When King finally departed Norfolk island in 1796 he reported a population of 887, of whom many were free and land holders.This settlement closed in 1814 and it was eleven years later when in 1825 Captain Richard Turton established what was to be Britain’s harshest Penal Settlement. Floggings, hangings and torture was part of the every day life. In 1855 this settlement was disbanded and many of the convicts were shipped off to Van Diemen’s Land.
Arrival of the Pitcairn Islanders

In 1788 HMAV Bounty arrived at Matavai Bay in Tahiti under the command of William Bligh, bound for the West Indies with a boat full of bread fruit for the slaves. On the 28th April 1789, Captain Bligh was awakened and bound by the sailors, thus began the saga of the Mutiny on the Bounty. 28 persons landed on Pitcairn in January 1790, nine Europeans, six Tahitian men, 12 Tahitian women and a baby girl. The mutineers were Edward Young, William McCoy, William Brown, Matthew Quintal, Alexander Smith (John Adams) John Williams and Isaac Martin. 3 other Engishmen settled on Pitcairn a few years later, John Buffett, John Evans and George Hunn Nobbs.

The Pitcairners were the descendants of the Bounty mutineers (and late settlers Buffett, Evans and Nobbs) who under the command of Fletcher Christian had settled Pitcairn Island in 1790. By the 1850’s Pitcairn had out grown their tiny island and Queen Victoria agreed to relocate the islanders to Norfolk Island. 193 men, woman and children arrived to Norfolk on 8 June 1856. The settling of the Pitcairners on Norfolk Island marked a complete break from the island’s convict past, establishing new patterns of life, including unique traditions and culture such as the local language, weaving and cooking.

Population
Norfolk has approximately 2,000 citizens with roughly equal numbers of Pitcairn descendants, Australians and New Zealanders.

Language
The language spoken on Norfolk Island is English, but you’ll hear the Islanders speaking Norfolk, a unique language derived from the speech of the Bounty Mutineers and their Tahitian wives and companions who settled Pitcairn Island in 1790.

Geographical Location
Norfolk Island is 1610kms ENE of Sydney, 1456kms ESE of Brisbane, 1063kms NNW of Auckland and 772kms SE of Noumea. Norfolk Island is a volcanic outcrop 8km long and 5km wide. Two smaller uninhabited islands, Nepean and Phillip, lie to the south at a distance of 1km and 6km respectively. Norfolk Island is 3855ha.

Climate
Subtropical. Average rainfall 1328mm per year. Lovely summer days from 24 degrees but not exceeding 28.4 degrees, nights 19-21 degrees. Idylic days mid-winter, with temperatures ranging from 12 at night to 19-21 degrees during the day.

Source
norfolkisland.com.au/pages.asp?code=500

Housing affordability in Australia has emerged as a major election issue, after the First Home Buyer Affordability Index, compiled by the Housing Industry Association and the Commonwealth Bank, fell to its lowest level.
Prime Minister Howard says he understands there is a problem with housing affordability.

“You won’t solve it by releasing for housing the high court or the parliament, which are two buildings included in the leader of the opposition’s six billion dollars,” he said.

Kevin Rudd announced Labor’s polices which includes freeing up surplus commonwealth land and a $500 million fund to cut the cost of infrastructure on new housing developments.

Mr Howard says that prices have risen due to low interest rates allowing people to borrow more and buy more expensive homes.
The Housing Institute of Australia-Commonwealth Bank quarterly review found that housing affordability had fallen to a record low after interest rates hit their highest level in nearly a decade after nine successive rises.

The findings come amid mounting speculation that rates will rise again next month if inflation for the September quarter is high.

But the question needs to be asked what will happen to the housing market if America’s Federal Reserve System is abolished?

 This is the policy of a Congressman Ron Paul, a top-tier Republican GOP American Presidential candidate, who opposes the Federal Reserve, and supports a dollar backed by real money gold and silver, as the U.S Constitution mandates, instead of prosperity-wrecking fiat money.

It seems the monetary policy issue is being overlooked in the housing afford ability debate.
Releasing more land effectively dilutes the value of the housing market just like printing fiat money dilutes the value of the dollar.

AUSTRALIA’S largest wind farm, with the capacity to generate enough electricity for 400,000 homes, could be up and running in far western NSW by the end of 2009.

Hamburg-based Conergy, which currently has about 15 per cent of the solar energy market in Australia, announced its proposal today to install about 500 wind turbines northwest of Broken Hill.

10 times larger than the next biggest windfarm approved for NSW the Silverton plant could be operational in stages by late 2009, but the $2 billion facility will only partially meet the coming electricity deficit as the supply of electricity represents the next big challenge for the Iemma Government.

The recent inquiry into energy supply in NSW revealed that electricity is running close to capacity in the state and without further investment in a baseload facility some time in the next six years, residents will start to see interruptions to their electricity supply. Estimates are that the entire sytem in is need of a $15 billion upgrade and makeover.

The company will submit a development application for the farm in March next year, with approval expected by the end of the year.

Conenergy executive director Andrew Durran said the Federal Government’s plans to establish binding targets for renewable energy were key to the project.

“Its success will be very much hinged on strong government legislation on renewable energy targets,” he said.

The project could produce up to 4.5 per cent of NSW’s annual energy needs, and reduce greenhouse gas emissions by three million tonnes of carbon dioxide a year, the company said.

“Silverton Wind Farm will be one of the largest in the world once it’s operating, with the potential for almost 1000 megawatts of renewable energy capacity,” Mr Durran said.

He said he had also spoken to the communities of Silverton and Broken Hill, with most people showing support for a project that would create 100 permanent jobs in the area.

Four landholders have already agreed to host the wind turbines.

Building approvals fell more than expected in August and the lack of building will force rents and house prices higher amid a lack of supply, AAP reports.

Building approvals fell 1.7 per cent to 12,751 units in August, seasonally adjusted, from a downwardly revised 12,974 units in July, the Australian Bureau of Statistics said today.

Over the year to August, building approvals fell 0.1 per cent.

UBS senior economist Adam Carr said housing construction was below national needs, and would drive up housing costs.
Higher rents and house prices would likely to add to inflation and force interest rates higher, Mr Carr said. He predicted interest rates would rise again in February, after nine rate rises in just five years.
APM’s general manager Michael McNamara told news.com.au that rents would continue to rise.  “Weekly asking rents in all capital cities are at record highs,” he said.

Although the climate was giving renters little relief, it was a good time to be investing in the property market as returns were growing, Mr McNamara said.

“Increasing gross rental yields are expected to drive stronger property markets in the eastern capital cities, especially in apartment markets,” he said.

“Investors will see stronger investment fundamentals as a reason to prefer property as an asset class”.

The research also found low rental yields in Perth meant its property market was Australia’s most over-valued, with returns on the year a meager 3.7 per cent, the lowest of all capital cities.

Doing your homework when setting your price

Selling a property can be a positive experience and doing your homework before your property goes on the market can make the difference between a good experience and a virtual nightmare.

When a property buyer is looking to spend their money, most would understand the importance of research before they make a purchase. Buyers are doing their research. They are looking on the internet at properties for sale, inspecting properties for sale and researching on what has recently sold. The buyers, armed with this knowledge will be comparing against your property and determining if your property represents value.

Most property owners that have successfully sold real estate would state that there is one fundamental reason why a property doesn’t sell successfully and that is the property was overpriced.

Statistics have shown that when a  property  is overpriced  it may not only take longer to sell but in fact sell for less than what it could have had it been priced correctly in the beginning.

As the seller, by completing some diligent research, you will gain a basic understanding of your local property market and best avoid the pitfalls and hopefully sell sooner and for a price you’re happy with.

Recent comparable sales

Look at other properties that compare to yours that have recently sold. How quickly did they sell and what was their selling price? This will give you an understanding of what buyers are prepared to pay for properties that compare to yours. Make sure you try to compare at least 3 recent sales and don’t compare sales that are more than 3 months old from the sale date. If you are looking to sell with an agent, unless your property is very unique, they should be able to supply you with these facts when giving you a market appraisal. If you’re considering DIY then you can download a recent sales report for a small fee from property websites such as RP DATA -http://reports.rpdata.com.au.

Comparable properties on the market

Consider other comparable properties currently for sale, what are their asking price and how long have they been on the market? You can gain this information simply by reviewing current and past newspaper advertising or contacting  an agent, You can even arrange an inspection of a few properties, this way you can better compare them to yours, after all they will be your competition and having your property prices slightly more competitively may gain you an edge with the buyers.

What is your local market doing?

Which way is your local market currently moving? Are prices going up or down? Are properties staying on the market longer than usual? There is no status quo with the property market, and pricing is determined by supply and demand. Gaining this basic knowledge of your local market will not only assist with your entry price but also to adjust your price quickly and with confidence if necessary.

Speaking to others who have been successful

Speak to other property owners who have recently sold. Find out what their experience has been like selling in the current market and what would they have done differently or not, if they had to sell over again.

Obtaining a registered valuation

Another way of determining your properties value is to have a registered valuation completed. This may cost you money but it can be a very valuable tool to have in your selling kit, especially if your property is a bit unique and you are finding it difficult to set a price. A registered valuer will take more of a mathematical approach to your properties value. In some cases the price may be a bit conservative but at least it can give you a sound platform to work from.

Pricing Structures

Today, there are many options to choose from when deciding how you will advertise your price. Some of the pricing examples are:

• Fixed price $100,000
• Price Range $80,000 - $110,000
• Offers Invited
• Offers Above $100,000
• POA
• Auction

Each method of pricing can have advantages but it really does boils down to what you’re comfortable with. As long as you have the facts to verify that the chosen method is giving sellers results in your local market.

Do you have a selling story that may help other readers? was it successful or a disaster?

Please feel free to post a comment here

A German man decided to settle his imminent divorce by chainsawing a family home in two and making off with his half in a forklift truck.Police in the eastern town of Sonneberg said on Friday the trained mason measured the single-storey summer house — which was some 8 meters (26 feet) long and 6 meters wide — before chainsawing through the wooden roof and walls.

“The man said he was just taking his due,” said a police spokesman. “But I don’t think his wife was too pleased.”

After finishing the job, the man picked up his half with the forklift truck and drove to his brother’s house where he has since been staying.

View our regional and rural properties>> 

Ah, city life, it conjures up thoughts of café’s restaurants, cinema, and large shopping centers, and of course money, that’s where the money is…or is it?

Approximately 60,000 people a year make the move out of the city and relocate to their new life in regional areas and not all of them are retirees.

Many families want a better quality of life for themselves and their children and are finding it in the country more than ever; but, one thing that has caused families to hesitate in making the move is employment.

You may now be surprised at just how fast country and regional areas are growing and just what opportunities there are out there with employment and this includes starting your own business.

• Have you successfully made the move to the country and easily found work or have started a business; has the change been a positive one for you?

• Do you live in the city and have wanted to make the move but have concerns?

Please share your thoughts and post a comment below

The Federal Government has rejected a proposal of introducing tax deductions for first home buyers who purchase properties worth up to $500,000.

Mr Costello says the Government has no intention of making housing applicable to tax deductibility.

“We have never had deductibility of mortgage interest and the reason we’ve never had it is we keep houses out of the tax system,” he said.

“If you bring them into the tax system for deductibility purposes they’re going to be in the tax system for capital gains tax purposes and I don’t think Australians would want capital gains to apply to housing.”

 We welcome your say on this issue, please post a comment below

www.realestateguide.com.au welcomes its latest Independent Agent, Investing In Property.

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To see how Investing In Property can assist you with your property requirements visit their listing and properties for sale at www.realestateguide.com.au/investinginproperty/