31jan09_FBA_A07 - Exotiq Property

The Sydney Morning Herald
smh.com.au
Weekend Edition January 31-February 1, 2009
■ PROPERTY MARKET
Converted caravan may
be someone’s castle ...
Silvertail suburbs hurt the hardest
Jonathan Chancellor
Property Editor
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ALTHOUGH the average Sydney
house price slipped only slightly
at the end of last year, there were
big falls in the eastern suburbs
and on the lower North Shore.
Eastern suburbs house prices
fell 14 per cent to an $887,000
median during the December
quarter. Lower North Shore
house prices fell 13 per cent to a
$1.03 million median, the latest
figures from Australian Property
Monitors show.
Overall, Sydney house prices
fell just 0.7 per cent in the December quarter. But the year’s
4.2 per cent price deterioration
shaved $23,000 off the city’s
median house, which now
stands at $536,000. The inner
west recorded a 2.7 per cent
drop to $700,000 in house prices.
Small increases in house
prices were recorded during the
December quarter in the south,
south-west, upper North Shore
and Canterbury-Bankstown.
Sydney’s median house price
hit $568,500 in early 2004, with
the subsequent $32,500 decline
representing a 5.7 per cent drop
on the boom-time peak.
But Sydney’s price pain has
been mild compared with Perth
and Canberra. Perth, which had
previously been challenging for
the priciest mantle, recorded a
7.9 per cent drop during 2008 to a
$475,000 median. Canberra
house prices fell 6.7 per cent during 2008 to a $458,000 median.
Sydney units remained more
resilient than houses, falling
3.8 per cent during 2008 to a
$362,300 median after no price
movement during the December quarter.
ROUGH
ROAD AHEAD
Residential property prices, change September to December 2008
HOUSES
Blue Mtns
C’bury B’town
Central Coast
City and East
Inner West
Lower North
Nth Beaches
South
South West
Upper North
West
SMH GRAPHIC: 31.1.09
$345,000
$421,000
$325,000
$887,500
$700,000
$1,035,000
$920,000
$571,250
$339,000
$670,000
$350,000
UNITS
$235,000 -17.5%
$256,000 4.5%
$260,000 -8.8%
$480,000 0%
$397,000 -2.0%
$475,000 -2.3%
$457,000 -3.8%
$347,000 2.1%
$216,000 -0.9%
$390,500 -2.4%
$272,000 1.5%
1.5%
1.5%
-0.8%
-14.9%
-2.8%
-13.8%
1.1%
1.1%
0.9%
1.5%
0%
SOURCE: www.homepriceguide.com.au
‘‘While the first home buyers
share of the mortgage market increased from November, these
latest figures show that the
Government’s first home buyers
boost scheme has done little,
thus far, to stem falling property
prices,’’ said Liam O’Hara, an
economist at Australian Property Monitors.
He said property prices were
unlikely to fall as precipitously
this year, such as the falls in the
United States and Britain last
year, but market values would
‘‘continue to slide modestly’’
over the next two quarters.
The market for units was
weakest on the northern
beaches during the December
quarter. They fell 3.7 per cent to
$457,000.
‘‘There is now a genuine belief, among even the most optimistic economists, that the
current fiscal and monetary policy stimulus packages are not
enough,’’ Mr O’Hara said.
Some economists predict
cash rates could drop to 2.75 per
cent by April. The Reserve Bank
is expected to cut the cash rate of
4.25 per cent to 3.25 per cent
News 7
when it meets on Tuesday as
markets absorb the bleak forecast for global growth from the
International Monetary Fund.
Australia could soon have the
lowest interest rates since the
early 1960s, when Sydney’s median house price was $8500.
While rate cuts will alleviate
mortgage stress, concerns about
higher unemployment have
prompted Fujitsu Consulting to
forecast 929,000 borrowers
under mortgage stress by July.
Queensland’s Sunshine Coast
was listed as the world’s least
affordable property market,
ahead of Sydney, London and
New York, in this week’s 2009
Demographia International
Housing Affordability Study.
The study ranked Sydney as the
fifth most expensive city given
house prices are running at 8.3
times median income.
It’s summertime, so the family home is up for rent
Yours for $22,900 (less grants) ... inside the converted caravan.
Calliste Weitenberg
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FIRST-HOME buyers looking to
break into the housing market
need little more than $9000 in
their pocket.
Sitting riverside on the state’s
North Coast, a $22,900 converted
caravan is the state’s cheapest
listed housing option for firsttime buyers armed with the Federal Government’s First Home
Owner Grant.
With the grant doubled to
$14,000 until June, buyers can
own the three-bedroom Macksville home for just $8900.
‘‘If you’re someone who has
been renting your whole life and
you’re looking to get out of the
rental market and you’ve got a
couple of bucks, it’s a good way to
own your first property,’’ said
sales agent Michael Tonkin, of
Nambucca Heads First National.
The NSW Office of State Revenue regards converted caravans
and relocatable homes as eligible
investments for the First Home
Owners Grant if they are rooted to
the ground, fully connected to
both water and sewerage and
have council approval to occupy
their chosen site.
‘‘This is a great example of
the new potential for home
ownership,’’ said Steve Martin,
president of the Real Estate Institute of NSW.
Mr Martin said the incentives,
coupled with the nation’s low
interest rates, had created opportunities for people not in a position to buy months ago. ‘‘If it
means owning a converted caravan, it’s still great, because you
get to own it.’’
Converted caravans and relocatable homes are among the
kinds of entry-level the property
forecaster RP Data says will perform well this year.
Pointing to rising unemployment, reduced bonuses and the
global collapse of financial markets, a spokesperson said there
would be increased forced sales
of luxury properties such as holiday homes; demand for prestige
property would remain low.
While the Macksville property
has a weekly site fee, the agent
said relocatable homes overall
had fairly low set-up costs.
... or for just a few
dollars more in Bali
Cliff-top luxury ... a deck surrounds a large wet-edge pool.
Stephen Nicholls
Domain Editor
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FOUR Australians have paid
$3.3 million each to buy into
Bali’s newest luxury resort on
100-metre cliffs overlooking the
Indian Ocean.
They are undeterred by continuing terrorism warnings, the
world’s deteriorating economic
situation or even the island’s
wine shortage. Sean Brennan,
the Australian general manager
of Alila Villas Uluwatu, says one
of the buyers of the threebedroom villas is a Sydneysider.
Two others are Australian expatriates living in Jakarta and
another in Hong Kong.
Mr Brennan says 13 of the 26
villas have sold off the plan and
could attract rents as high as
$4500 a night from wealthy
Chinese or Russians. But the
buyers so far are so rich they
plan to keep their purchases as
their own holiday homes.
‘‘They’ll pay a monthly maintenance fee of about $US1000
($1500) and use it for three or
four weeks a year,’’ he says.
Making money while the sun shines ... real estate agents have noted an increase in the number of families wanting to rent out their homes over the holiday season.
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FAMILIES around Sydney have
taken to renting out their houses
over summer, as a way of coping
with the souring economy.
There was a 15 per cent rise in
the number of households on
the northern beaches putting
their homes up for holiday rental
this summer, real estate agents
told the Herald.
Dozens of homeowners had to
be turned away in recent weeks
as they tried to rent out their
house at the last minute.
Jane Turpin has been working
at LJ Hooker in Palm Beach since
1984 and said that the recent rush
of people trying to rent their
house out was unprecedented.
‘‘We have more than 100
houses on our books and had to
turn away a lot of people who
approached us in the lead-up to
Christmas,’’ she said. ‘‘What we
saw, in particular, was people
from outside the traditional
holiday areas around Palm
Beach – we had your ‘mum and
dad’ homeowners trying to rent
out their houses around Mona
Vale and Newport.’’
The managing director of
holiday rentals website
rentahome.com.au, Justin
Butterworth, said the number of
listings increased by 45 per cent
in the three months to
December, compared to the
same period in 2007.
‘‘Property owners are seeking
extra income to help maintain
the mortgage and bolster their
financial position in case the
economy weakens,’’ he said.
‘‘They are benefiting from the
lower Australian dollar, with less
domestic tourists holidaying
overseas and more international
‘We ... had to turn away
a lot of people who
approached us in the
lead-up to Christmas.’
JANE TURPIN, LJ Hooker
shorter periods and more modest
accommodation, with demand
for high-end accommodation
falling. She said the minimum
cost of a house rental in Palm
Beach was about $3000 a week,
while at Avalon it was about
$2000 a week.
But there are still some
winners. One Palm Beach house
was rented out for 10 nights at a
cost of more than $40,000 to a
family visiting from Hong Kong.
The house has six bedrooms,
with an immediate waterfront,
boatshed, four-car garage and
separate guest house.
‘‘Our main market is still from
people living in the Lower North
Shore and eastern suburbs,’ Ms
Turpin said.
‘‘We do traditionally get a lot
of people visiting from overseas;
there’s always demand from
America, Hong Kong and
Singapore. But a lot of owners
were surprised when we told
them that with the financial
crisis, a lot of people didn’t want
to take that option [of coming to
Australia].’’
general manager
COMMUNITY MEMBERS
Legal Aid Review
Committee
• Rapidly expanding disability service
• Flexible conditions – 4 day week option
• Sutherland Shire location
Expressions of interest in serving as a community
member on a Legal Aid Review Committee are sought
from persons who are not legal practitioners but who
have an appreciation of the problems of the socially
and economically disadvantaged and a capacity to
absorb and understand legal material and policy
issues.
Allowance Inc enables people with physical disabilities to
transition from institutions to their own homes. Managing over
300 clients and carers throughout NSW, Allowance is a
significant government supported agency with a reputation in
working with clients to achieve independence and self dignity.
Reporting to the Board you will lead a small team ensuring
the effective operation of the service. You will lobby and
advocate to government, disability groups and associated
bodies, manage funding relationships, develop policy and
ensure clients are encouraged to be self-reliant and
treated with respect.
Applicants for legal aid may appeal to a Legal Aid
Review Committee appointed under the Legal Aid
Commission Act 1979 NSW against adverse
determinations made by Legal Aid NSW officers.
Each of the five Committees consist of a Chairperson,
a community member (who is not a legal practitioner)
and a joint nominee from the Law Society of NSW and
the NSW Bar Association. There is an alternate for
each member.
There are currently vacancies for a community and an
alternate community member on the Family Law
Committees. An eligibility list will also be created to fill
any future vacancies.
This is a non-remunerative position.
Aboriginal People and Torres Strait Islanders are
encouraged to apply for these roles.
Enquiries: Lyndsay Brooker (02) 9219 5859
798172
Applications in writing are invited and should be
addressed to Kathleen Thompson, Legal Aid NSW,
PO Box K847, Haymarket 1238 or via email to
[email protected]
Closing Date: Friday, 13 February 2009.
visitors being attracted to more
affordable accommodation.’’
But the increase in available
accommodation has meant that
homeowners have had to
compete much harder for renters.
Ms Turpin said that holiday
bookings this year were for
Room with a view ... interior of a Palm Beach waterfront house.
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Australians who buy in Bali
– See Domain
development
director
executive officer
• Peak body for tenants
• Rare ‘community legal sector’ opportunity
• Social justice and human rights focus
• Kick start ‘significant’ new income streams
• Fundraising or BDM experience
• Significant remuneration package
The Tenants’ Union of NSW (TU) represents the interests of all
tenants and campaigns for policy and law reform. TU also
operates as a community legal centre specialising in residential
tenancies law, and as the main resource service for the state’s
Tenants Advice and Advocacy Services.
The Climate Institute works with community, business and
government to drive innovative and effective solutions to climate
change. Its vision is for Australia to be a world leader in clean
technology use and innovation and a place where clean and
low carbon ‘climate action’ solutions are part of life.
Accountable to the Board, you will have outstanding staff and
financial stewardship skills. Liaison with tenancy networks
and the community legal sector will be a key aspect of the
role and the maintenance of excellent relationships with
funding authorities will be essential.
This role will develop and implement fundraising strategies
targeting philanthropists, government and corporations. You
will work with the board and senior staff to identify
prospects, nurture relationships and drive major gift
cultivation and solicitation.
You have a track record in management especially in
nurturing staff, preferably within a disability or community
based organisation. Financial management, accreditation
and quality improvement skills, dealing with government,
clients and the physical disability sector will be crucial.
Candidates with a physical disability are encouraged to apply.
You have a track record in community management,
preferably within an advocacy or rights-based organisation,
and a commitment to social justice. High level
communication and diplomacy skills are essential to ensure
that the positive relationships that now exist amongst staff, the
Board, external funding bodies and the network of tenancy
services continue into the future.
You have a track record in ‘making the ask’ for a not-for-profit
or in business and are able to negotiate successful outcomes.
You have the maturity and experience to establish and nurture
meaningful relationships resulting in new and significant
donations, grants and sponsorships.
If you would like to lead this
best-practice disability
organisation then please
contact Olivia Ryan on
02 8243 0570 or send
your resume to
[email protected]
quoting reference #29338.
If you are passionate about
managing a strong
representative body then
please call Olivia Ryan on
02 8243 0570 or send
your resume to
[email protected]
quoting reference #29337.
If you have the technical
skills and are passionate
about fighting climate
change then please contact
Richard Green on 02 8243
0570 or send your resume
to [email protected]
quoting reference #29295.
A division of Bradman Recruitment
Franchise Partner of CareersMultiList.com.au
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hmaBlaze138512
Jonathan Dart
The complex, developed by
the Indonesian-owned Alila
group, is in Bali’s newest development hot spot, the southern
Bukit region.
Australians, who cannot buy
freehold property in Indonesia
unless they marry a local, are
offered a 100-year lease at Alila
Australian Lewis Norman,
who owns Alu Bali villas in the
upmarket restaurant haven
Seminyak, says: ‘‘They have a
second home and a holiday
home here that generates income. But you need to do due
diligence . . . before you buy.’’
Former Sydneysider Saxon
Looker had the job of selling the
Sentosa villas in Seminyak during the Schapelle Corby trial, followed by the second Bali
bombing. Half the villas sold to
Australians.
Mike Pugh, of Exotiq Real Estate in Seminyak, says the prices
of some luxury villas have fallen
30 per cent because of the
financial crisis.
A division of Bradman Recruitment
A division of Bradman Recruitment
Franchise Partner of CareersMultiList.com.au
FBA A07