Extension needed for buyer boost

4 • SATURDAY, MAY 2, 2009
REAL ESTATE THE WEST AUSTRALIAN
PORTFOLIO
Extension needed for buyer boost
WIN WIN WIN
For the increasing number of
people choosing to live in
apartments, body corporate living
can be confusing.
With more than 24 years of
experience, Stephen Raff’s Body
Corporate Handbook offers a
step-by-step guide that
demystifies and educates about
body corporate living.
The book covers elements from
deciding whether body corporate
living is for you, to legal and
financial considerations.
The book has useful case
studies and friendly language but
also contains useful State-specific
information.
On a recent visit to Perth, Raff
shared some of his research tips:
• Talk to others living in a body
corporate and find out if it will
suit your lifestyle.
• Get an engineer’s report on
both the unit you want to buy and
its common property.
Ask the strata company for:
• A copy of a disclosure
statement regarding any
outstanding administrative fees
so you don’t inherit debt.
• A copy of the minutes from the
past 12 months.
• A copy of plans showing what is
common or private property.
REAL ESTATE
MATTERS
ROB DRUITT
The First Home Owner Boost is set
to end on June 30. Currently,
first-homebuyers are eligible for a
grant of $14,000 if they buy a
second-hand home and $21,000 if
they buy a new home not previously
sold or lived in, or if they build from
scratch on a block of land.
The boost was introduced in
October by Prime Minister Kevin
Rudd to help stimulate the economy
in the wake of the global downturn.
There is no question that the boost
has had a very strong and positive
effect on the housing market in WA.
Normally, first-time buyers are 20
per cent of overall purchasers.
Currently, they account for just over
40 per cent.
Perth’s northern suburbs
currently seem most attractive to
first-homebuyers, with strong sales
being recorded in places like
Ellenbrook, Butler and Clarkson,
while in the southern suburbs
Canning Vale, Thornlie and Baldivis
are proving popular. However, firsthomebuyer activity can be found in
pockets right across the metropolitan
area as well as in Mandurah and
Bunbury.
Some commentators have
expressed the fear that the boost
would be inflationary and push up
prices. Would sellers raise their
asking price because first-homebuyers had access to more money?
The Body Corporate Handbook by
Stephen Raff (Wrightbooks,
$32.95)
.................................................
For a chance to win one of five
copies, write your name, address
and phone number on the back of
an envelope and send it to: Body
Corporate Handbook Competition
GPO Box 2927, Perth, WA 6800.
Entries close Wednesday at 5pm.
.................................................
First-homebuyers have largely been soaking up the oversupply of new housing in WA.
There is no evidence for this and
in the popular first-homebuyer
regions of Rockingham/Kwinana and
Armadale/Serpentine, house prices
went backwards a little in the March
quarter.
Curiously, however, the average
first homebuyer loan in WA jumped
from $256,000 in September last
year (before the boost), to $300,000
in February this year.
This is the highest average firsthomebuyer loan rate in Australia,
with the national average being
$263,000.
REIWA believes the boost should
be extended for another six months
or, failing that, phased out through
until December rather than stopped
dead in June.
A sudden stop now could have a
devastating affect on the property
market and broader economy.
Unlike the east coast, the housing
problems in WA have more to do
with oversupply rather than undersupply.
Mr Rudd’s stimulus boost was
designed to trigger construction and
create jobs but that hasn’t been the
strong experience here.
In WA, first-homebuyers have
MORTGAGE WATCH
Institution
Basic
rate
largely been soaking up the
oversupply because the boost enabled them to buy new homes that
had been sitting dormant.
This oversupply is starting to
dwindle to the point where
construction will soon be needed.
That will create jobs.
If Mr Rudd’s main objective with
the boost was jobs, then he really
needs to continue it for at least six
more months.
RESIDENTIAL SALES MONITOR
Intro
rate
Intro
term
Variable
rate
1-year
fixed
3-year
fixed
5-year
fixed
Week ending April 24. Top 10 (by turnover)
Fees
AMP
5.24
4.99f
12
5.89
5.49
5.99
6.79
$545-895
ANZ
5.11
-
-
5.81
5.45
6.19
6.84
$600
Aussie
-
-
-
5.55
5.59
6.19
6.79
$675
Bankwest
5.58
4.75v
24
5.70
5.39
6.19
6.84
$500-950
Citibank
5.43
-
-
5.99
5.79
6.39
6.89
$250-649
Commonwealth Bank
5.13
4.61v
12
5.64
5.39
6.19
6.84
$600
HSBC
5.23
3.99v
12
5.84
4.99
4.99
5.70
$650
ING DIRECT
5.09
-
-
5.09
5.39
5.89
6.69
$220-719
Keystart Loans
-
-
-
4.99
-
-
-
$914
Members Equity Bank
-
-
-
5.39
5.85
6.15
6.75
-
NAB
5.24
4.65v
12
5.74
5.09
5.49
6.29
$600
Nationwide Mortgage
-
4.57v
12
5.50
5.84
6.56
6.91
$710
Police and Nurses
5.53
5.24f
12
5.59
5.24
5.79
6.49
$650
RAMS Home Loans
4.99
4.59
24
5.59
4.99
5.79
6.49
$845
RESI Mortgage Corp.
-
4.57v
12
5.62
5.95
6.67
7.02
$0-633
St. George Bank
5.07
4.66v
12
5.79
5.44
5.34
5.94
$100-700
Suncorp
5.22
5.79f
12
5.80
5.79
6.39
6.99
$600
Westpac Banking Corp.
5.11
-
-
5.81
5.39
5.79
6.39
$600
Rates current as at April 27. Introductory rate: f=fixed, c=capped, v=variable
SUBURB
HALLS HEAD
AVELEY
ATWELL
MOUNT LAWLEY
MOSMAN PARK
BOORAGOON
MOUNT CLAREMONT
TAPPING
CLARKSON
COOLOONGUP
NUMBER
12
9
7
3
2
4
2
6
7
8
TOTAL $
$5,836,000
$3,959,000
$3,259,100
$3,088,000
$3,020,000
$3,017,500
$2,825,000
$2,790,000
$2,619,000
$2,565,000
Week ending April 24. Top 10 (by number sold)
For more information, visit www.infochoice.com.au
Copyright Infochoice Ltd 2001
HALLS HEAD
AVELEY
COOLOONGUP
ATWELL
CLARKSON
HUNTINGDALE
WARNBRO
GOSNELLS
TAPPING
FORRESTFIELD
12
9
8
7
7
7
7
7
6
6
$5,836,000
$3,959,000
$2,565,000
$3,259,100
$2,619,000
$2,397,400
$2,294,000
$2,065,000
$2,790,000
$2,189,000
Source: LandGate’s Valuation Services www.landgate.wa.gov.au
BIG VIEWS, SMALL PRICES
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2 x 2 (Total Area 109sqm) from $610,000 • 3 x 2 (Total Area 151sqm) from $770,000
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Office open Saturday & Sunday, 2pm - 4pm Weekdays, 12.30pm - 1.30pm
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