Median house price to be at least $1 million in most capital cities by 2024 — Home Loan Experts

Priceincrease thumb Median house price to be at least $1 million in most capital cities by 2024 — Home Loan Experts

PROPERTY prices are tipped to soar over the next decade as median house prices in most capital cities come with a $1 million plus price tag.

While it will music to the ears of current owners, for hopeful homebuyers it means they will be further squeezed out of a heated property market.

National house prices have skyrocketed at a rate of 8.43 per cent per annum in the 30 years until 2010 and given recent soaring growth rates it’s predicted Australians will need to stump up much larger deposits to afford properties that have risen beyond six digits.

Analysis by mortgage broking firm Home Loan Experts found the median house prices in all capitals is set to climb beyond $1 million and unsurprisingly Sydney will remain the most expensive city to buy — the average median house price in 2024 is tipped to hit $1.824 million.

Melbourne is the next worst where the median house price is tipped to reach $1.366 million.

Home Loan Expert’s managing director Otto Dargan is adamant property prices will continue to rise and said as a result homeowners would need to look at smaller properties including apartments.

“The days of the quarter acre block are coming to an end,’’ he said.

“Living in apartments will continue to become a much better trend.

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tt twitter micro3 Median house price to be at least $1 million in most capital cities by 2024 — Home Loan Experts

8 things that turn buyers off

declutter.1 thumb 8 things that turn buyers off

While every buyer is their own man or woman, there are some common complaints from buyers looking for properties that don’t pass muster. Know them and you can avoid them when it’s your turn to sell.

Clingy sellers

It can be extremely difficult to let go of a property, especially if it’s somewhere you’ve made a home and stitched together memories. But once you’ve decided to sell you need to commit to that process.

Give your agent room to do their job, and potential buyers the space they need to get hooked. Sellers that linger during an open inspection, or start regaling inspectees with merry tales of every last crevice will turn most people off.

Even if your stories are actually quite charming, you need to remember that selling a property is a business transaction, and stay as dispassionate and objective as possible. Keep your distance and focus on the next property in your life!


Walking into a property that’s not well presented is often the death knell for a sale. Buyers will turn off if they’re inundated with dust, dirt or other muck. Make an effort, and hire a professional cleaner, home stager, or both if you need a hand.

Thoroughly clean the entire property, including all those areas you think no one notices. Living areas, backyards, bathrooms and toilets should get extra attention (you’d be surprised how many people use the bathroom at an inspection).

You can’t really overdo cleaning when it comes to selling – properties that just look neat and acceptable might not be enough, especially if you’re commanding top dollar.

Your home should shine as much as it possibly can.


Ah, the good ol’ nose, always ruining things. Actually, we should be glad we’re so sensitive to smell, and that smells can have a big impact on our property buying process.

Setting up your place for sale can involved creating a set of inviting smells. But it should also involve getting rid of the unappealing ones.

Top of buyers turn off lists are pet smells. Even if we love our own animals, we don’t really want to smell other people’s, especially when it’s in an environment we’re trying to imagine kicking back and relaxing in.

Other smell turn offs are cigarette smoke, mustiness, food and overpowering perfumes or incense (if you’re dressing your home for sale, less is more).


If your property is for sale, you usually need to do a little more than a quick spruce (unless you keep an amazing home all year round!). Declutter strategically and systematically, starting with those areas that will interest most buyers when they inspect your home, and the areas they’ll do most of their living in. A cluttered living room is harder to explain away than a cluttered garage, for example.

Getting a professional organiser in to help you out can be a great idea, especially if you’re overwhelmed with all the other business involved in selling a home – not to mention living your life around it.

A pro can look at your clutter objectively and take quick, decisive action to remove the excess and store the rest out of sight.


Call it the Goldilocks effect.

If a property is too hot or too cold your buyers will bristle. Though it mightn’t be a deal breaker it does invite pointy questions – does the heating or cooling work as it should? With such high ceilings, it is expensive to heat?

Buyers get turned off it they can’t experience your home at its optimal comfort levels.

No price

Fewer things will frustrate a buyer more than looking at an advertised property with no price. It’s a big complaint from our website users if agents haven’t included at least an indicative cost, and we understand.

Your listing is usually the first time your possible buyer will see your home. If the required detail isn’t there, it’ll have be something truly unique to get them to dig deeper, rather than just scrolling past to the next property that meets their criteria.

Budget is all important for a buyer. It’s not always possible to pin down a finite dollar figure, but if your property advertising doesn’t at least have a range listed, it’s a top turn off for buyers, who probably think they’re in for a nasty shock (even if the home is reasonably priced). Help them marry their budget to your property and be upfront.

No address

Buyers want and deserve to know where their investment is located. Sometimes the suburb alone isn’t enough; surrounding streets and amenities can often make or break a sale.

Make sure your agent includes the full address you have available so it’s easy for buyers to do their homework on your property (the more work they put in, the more likely they’ll ultimately buy).

Not including information can be seen as a way to hide less than desirable details, whether or not it’s the case. And hiding doesn’t help anyone.

No photos

Would you buy a product sight unseen?

Photos are the single most powerful tool to inspire a potential buyer to inspect a home, or make an enquiry. People need to imagine their lives in your property, or get an authentic impression of how it will stand up as an investment.

Work with your agent to create a series of photos or video that shows your home in its best possible light. No visuals bodes poorly.

Story:   Venessa Paech     Source:

tt twitter micro3 8 things that turn buyers off

RBA: Rates unlikely to stay put in 2015

ratesno2 thumb RBA: Rates unlikely to stay put in 2015

Australian homeowners are set to sail through 2014 without a single interest rate change. But the same can’t be said for 2015.

There are widespread expectations among finance experts that rates won’t stay steady in the New Year. Determining factors include the heated property markets in Sydney and Melbourne and lifting unemployment rates.

But it’s the world economy that may play a bigger part in any rate movement, says Market Economics managing director Stephen Koukoulas.

“I’m a bit nervous about the global economy and looking at things like commodity prices,” he says.

“I don’t think we’re headed for another financial crisis, but growth is very sluggish.”

If rates change in 2015, Koukoulas predicts it will be shift south.

“If unemployment is up at 6.5%, the property market comes off the boil and commodity prices are still not strong enough, the next move for rates is down,” he says.

Wage growth and consumer confidence is also set to play a big part in how rates shape up in 2015.

The Federal Government is considering a pay rise of just 1.5% per year for the next three years for Defence Force personnel. Koukoulas says such a low offer has implications for Australia’s wider economy.

“There’s a link between public sector wages and private sector wages,” he says.

“And if private sector wages growth is very low, inflation is low because of it and it hurts consumers who can’t afford to spend.”

The nation’s annual rate of inflation eased from 3% in the June quarter to 2.3% in the September quarter, leading the Housing Industry Association to reaffirm its view rates will stay on hold for some time.

HIA senior economist Shane Garrett says the current key measures of key inflation sit comfortably within the Reserve Bank of Australia’s target range.

“While today’s figures show a rather large reduction in the pace of inflation, this has been assisted by the one-off influence of the carbon tax repeal,” he says.

“The housing component of the (Consumer Price) Index provides a good example of the impact the carbon tax was having on households.

“The electricity price level dropped 4.4% in the September 2014 quarter, and by 5.1% over the year.”

Modest growth of just 1.1% has been recorded in the price of new homes in the September quarter, which Garrett says is a stark contrast to the steep price growth of established houses.

“Policy makers must address the high cost of delivering residential land to market if we are to make meaningful inroads into the housing affordability challenge,” he says.

Story:  Kate Jones    Source:

tt twitter micro3 RBA: Rates unlikely to stay put in 2015

Interest Rates Could Stay On Hold Until Mid 2015

Reserve bank no 2 thumb Interest Rates Could Stay On Hold Until Mid 2015

The Reserve Bank has made no secret that it is watching house prices closely but it is becoming clear to economists that the board will not use the cash rate to cool things down this year.

On Tuesday the RBA left the official cash rate on hold at 2.5 per cent for the 14th consecutive month.

Australia is now experiencing the longest period of interest rate stability in more than a decade, and it looks set to continue.

All 28 experts surveyed by mortgage comparison website are now expecting the cash rate to start rising next year, most probably in June. Six months ago almost half of the respondents (five out of 11) expected the cash rate to start rising this year.

The senior economist for the Domain Group, Dr Andrew Wilson, said the RBA was unlikely to move rates while key economic data remained "mixed".

But Dr Wilson did note that despite rates staying on hold, finance was becoming cheaper.

"Mortgage rate settings, however, remain competitive with major banks continuing to improve housing loan affordability through lower lending costs," he said.

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tt twitter micro3 Interest Rates Could Stay On Hold Until Mid 2015

Bad tenants don’t only cause headaches they can cost property owners thousands

badtenantsno2 thumb Bad tenants don’t only cause headaches they can cost property owners thousands

Bad tenants can be a costly nightmare, property owners can get stuck with massive clean up bills and may never see the back rent owned to them.

So how do you sift out the good from the bad?

According to Terri Scheer Insurance executive manager Carolyn Parrella, attracting the right tenant can make or break a landlord.

She said it was not only important to find the right tenant but to keep them happy also.

“If tenants are happy they may be more likely to pay their rent on time, stay in your property longer and look after it as if it were their own,” she said.

Follow her tips for avoiding dodgy tenants;

• First think about the type of tenant you want to attract.

“When choosing an investment property, think about the tenant demographic you want to attract, for example a family, sole tenant or couple, and choose a property that is likely to appeal to them.

“Properties that are close to good schools, shops and public transport are likely to be well sought after and may give you a larger pool of prospective tenants from which to choose.”

• Screen tenants.

Thoroughly check potential tenants’ references during the screening process.

“Speak with previous landlords or property managers and ask specifically whether they had any

issues with the tenant in the past,” Ms Parrella said.

• Present your property well.

“A property that is poorly presented by the landlord may be poorly cared for by the tenant. No one wants to live in a property that has stained carpets and marked walls.

• Appoint a property manager

“They have experience in screening prospective tenants and have access to databases that list

tenants with a history of defaulting on rental payments, damaging property and eviction.’’

• Attend to maintenance issues promptly.

“A tenant who isn’t getting the attention they deserve might begin to question their commitment to your property and become more careless with it.’’

Plus injury or loss as a result of a safety hazard might result in costly legal claims.

• Landlord insurance

“Even the best tenant can accidentally damage a property or lose their job and be unable to pay rent,” Ms Parrella said.

“Every landlord should have a tailored landlord insurance policy that covers them for both malicious and accidental damage, their legal liability and the loss of rental income.’’

Story Source:

tt twitter micro3 Bad tenants don’t only cause headaches they can cost property owners thousands

Liberal MP flags tougher foreign buyer rules

forsale4 thumb Liberal MP flags tougher foreign buyer rules

The Liberal chair of a parliamentary committee has flagged tougher enforcement of rules prohibiting foreign purchases of existing homes, as both she and the Treasurer welcomed overseas buyers of new dwellings.

Speaking at a Bloomberg economic summit in Sydney, the chair of the House of Representatives Economics Standing Committee Kelly O’Dwyer says there has been worrying evidence of foreign investment restrictions not being enforced.

Ms O’Dwyer says the Foreign Investment Review Board (FIRB) has not mounted a prosecution or made a divestment order for breaches of the rules since 2006.

"If you have a framework in place, in order to give confidence to people more broadly in the Australian community, you have to have a regime that will be properly enforced, and so far FIRB have demonstrated that they have not been doing their job in that regard," she said.

"I think there has been a failure of leadership in FIRB. I think that they have not been proactive in the way that they have gone about their role."

The FIRB testified to the committee that it only had eight staff dedicated to reviewing thousands of foreign purchases of residential real estate.

Ms O’Dwyer says that is no excuse for the non-existent level of prosecutions for breaches, however she has raised the possibility of more funding for the FIRB’s real estate monitoring.

She says the committee is looking at recommending a tougher civil penalty regime than the current fines of $85,000 for breaching the rules, which she says many investors regard as simply a potential "cost of doing business".

"We’re actually looking at a sliding scale that would attach to the value of the property if people do breach the rules in place," she said.

"I think that money that would come in from any new penalty regime should be hypothecated to FIRB so that they have the right resources at their disposal, so that they can be far more proactive."

Ms O’Dwyer says the committee is also looking at introducing penalties for people who aid and abet foreign buyers in contravening the rules, such as real estate agents or conveyancers.

Story:  Michael Janda and Simon Frazer   Source:

tt twitter micro3 Liberal MP flags tougher foreign buyer rules

Demand for home loans misses forecasts

demandforhomeloans thumb Demand for home loans misses forecasts

DEMAND for home loans rose in July, official data showed, but by much less than expected, as loans for owner-occupied homes slipped in the month.

According to the Australian Bureau of Statistics, the number of home loans granted in July rose 0.3 per cent in seasonally adjusted terms to 52,251.

Economists surveyed by Bloomberg had expected the number of housing finance commitments to rise by 1 per cent in the month.

Total housing finance by value rose 2.7 per cent in June, seasonally adjusted, to $28.571 billion.

The value of investor lending surged 6.8 per cent in the month to $11.513bn.

The number of loan approvals for refinancing rose by 2.4 in July.

Loan approvals for owner-occupiers, excluding refinancing, fell by 0.7 per cent in the month, to be also be 0.7 per cent lower over the year.

At 12.2 per cent, first-home buyers accounted for the smallest share of housing finance in the history of the data.


Story:   Mitchell Neems   Source:

tt twitter micro3 Demand for home loans misses forecasts

Sales surge sees house prices defy talk of winter slowdown

housepricesremainsteady thumb Sales surge sees house prices defy talk of winter slowdown

HOUSE prices have defied predictions of a gradual slow down, posting the biggest jump over the three months of winter since 2007 as low interest rates continue to fuel the market.

Figures from RP Data, released ahead of today’s Reserve Bank of Australia monthly meeting on the cash rate, found prices across the capital cities increased 4.2 per cent to a median of $520,000 for the quarter to August 31.

Interactive: Growth in property prices

Sydney’s median price surged 5 per cent to $650,000 and Melbourne’s prices jumped up 6.4 per cent to $523,750, a growth rate far ahead of the other capital cities.

Canberra homes were up 2.4 per cent, Adelaide prices increased 1.5 per cent, Brisbane was up 1.3 per cent and Perth was up by 1 per cent.

Hobart was down 0.8 per cent while Darwin dropped 0.6 per cent.

Cameron Kusher, a senior researcher at RP Data, said while spring generally saw higher price growth than winter, he wouldn’t be surprised if this had reversed. “We saw a strong winter because of a lack of supply at the same time as low interest rates. Buyers could have a lot more supply to choose from in spring,” he said.

Worried about continued price growth, Megan Harold and husband Chris decided to sell their house in Sydenham, in Sydney’s inner west last weekend, moving to a larger house they purchased at the same time. “The way the market was going, we knew if we didn’t make the move now we wouldn’t get the kind of property we wanted,” Megan said.

The Harolds purchased in Earlwood, where larger block sizes mean it will be easier to ­reconfigure the house as their family grows.

Sydney realtor Maria Hodgson-Smith, from Day & Hodgson, said there weren’t enough houses to satisfy demand, with many selling before auction date as buyers became more aggressive.

Brian White, chairman of real estate agency Ray White, said the housing market was mimicking the economy with the resources-driven cities of Perth, Brisbane and Adelaide performing well, but completely outshone by the financial services-oriented cities of Sydney and Melbourne. Offshore investment had also underpinned those markets, he said.

Mr Kusher said price growth was encouraging many to invest in property, although he said once interest rates began to rise this should pull back as investors moved on to other markets. “Sydney prices have increased by 50 per cent since 2009, and Melbourne by 45 per cent, so a lot of people have built up a lot of equity in their home to invest, and there’s not been a lot of returns to be had with money parked at the bank,” he said.

Scott Haslem, chief economist at investment bank UBS, interest rates would begin to “normalise” around May next year, increasing again in June.

Story:  Kylar Loussikian and Turi Condon    Source:

tt twitter micro3 Sales surge sees house prices defy talk of winter slowdown

5 tips to cut the clutter

Declutter thumb 5 tips to cut the clutter

Ever said any of the following to yourself?

Even if I can’t use it, I’ll keep it for someone who can. It was too expensive to get rid of now. It reminds me of a special time or person.

What about these?

  • One day it might fit me.
  • I’ll read it when I have more time.
  • It may look like a mess to others but it’s organised chaos to me.

We use a zillion excuses to justify the physical clutter that collects on our desks, in our wardrobes, on our bench tops and on other unsuspecting surfaces around our homes.

But instead of rationalising our behaviour to self and others, it may be more helpful to ask: how do I feel when I live, sleep or work amongst the clutter? Or what emotions come up for me when I think about sorting through the piles and files to clear the mess?

For many would-be hoarders, the mere idea of getting rid of clutter can create varying degrees of anxiety, guilt, embarrassment, shame, paralysis and insecurity.

In order to placate the overwhelming bubble of discomfort growing within, the clutter-bug clings a little tighter to the pile in question, which results in a sense of relief (at least in the short term) thereby reinforcing the unhelpful behaviour.

For others who struggle to sort and clear their clutter, there is often a misled belief that the items represent some kind of extension of who we are at our very core, therefore to get rid of the mess is erroneously perceived as akin to losing some sense of self.

In order to make progress in the battle of the mess, it’s important to understand what our relationship with the clutter represents. Only then can we hope to taste the sweetness of empowered lightness that freedom from the stuff we no longer need will bring.

For those drowning in a sea of insignificant memorabilia, bedside table pick-up sticks, a mounting floordrobe, or dust-coated items untouched in years, there is help at hand, and you can start today.

5 tips to cut the clutter

1. Start small

Bite sized chunks are key. Start with one pile, one shelf or one drawer. The act of sorting even one area free from clutter can help clear the physical and mental cloud to get the ball rolling.

2. Get real

What’s really important to you? If you haven’t worn or used an item for several years, give it to a charity or bin it.

3. Find clutter a home

Aim to sort and file papers and items to a permanent home, behind closed doors and drawers, rather than leave them on open shelves and surfaces. Keeping the items out of sight reduces the often overwhelming assault on our already overloaded senses.

4. Picture this…

Imagine a life without clutter. Picture how you will operate at your desk with the papers gone or how it will feel to sleep in a room minus the maze of clothing or books.

5. Document it

Take before and after pictures as a reminder of the progress you’ve made and the state you choose not to return to.

Story:   Sabina Read     Source:

tt twitter micro3 5 tips to cut the clutter

Most investors miss out on tax rebates

TaxTime thumb Most investors miss out on tax rebates

Even small items like smoke alarms and shower curtains can be claimed on rental properties.

Four out of every five property investors are missing out on potentially thousands of dollars in tax rebates, by forgetting to claim on everyday household items.

Shower curtains, smoke alarms, lawnmowers, roller-door motors, microwaves and garbage bins are among the dozens of minor objects in the average rental home that landlords routinely forget to claim depreciation on.

New research conducted by tax depreciation specialists BMT has revealed that figuring in these assets can increase the cash flow generated by a property by around 15 per cent.

“Property investors tend to focus on the larger-ticket depreciation items available, such as the structure of the house and large plant items in the house,” said BMT managing director Brad Beer.

“However it’s often the smaller items which can make a significant difference to an investor’s cash flow.”

Beer, who recommends investors engage a qualified quantity surveyor to create a deprecation schedule for their property, says investors can often name a few depreciable items, such as carpet, hot water systems and light fittings. “But a range of less obvious items, such as garbage bins, exhaust fans or smoke alarms, are often overlooked,” he says.

BMT conducted their survey among their 190 staff Australia-wide, asking them which items their clients found “very surprising” when told they could be depreciated or which they’d missed out in their DIY filing of depreciable items. The company has more than 8000 regular referrers to their business, including property professionals and accountants who recommend their services to property investors.

They found the most common assets never claimed for were items like garden sheds which have, on average, a depreciable value – the purchase price of the item minus its salvage value which can then be claimed for over its useful life – of around $855 and ceiling fans ($265) right down to smaller expenses like shower curtains ($30). Frequently missed were other assets like solar-powered generating systems ($5500), automatic window shutters ($800) and intercom systems ($745).

Story source: ; Story by Sue Williams

tt twitter micro3 Most investors miss out on tax rebates

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