The preliminary capital city dwelling value index result for December was -0.2% (s.a.) following an upwardly revised +0.4% rise in dwelling values in November (was +0.1%). Revised regional house values for November increased from +0.3% to +0.5%. Sydney housing has been the nation’s best performer with dwelling values up 0.4% in December and by 0.7% over the quarter (s.a.).

In the generally seasonally weak month of December, the preliminary RP Data-Rismark Home Value Index result for capital city dwelling values was -0.2 per cent (s.a.). Low sales volumes in December mean that this number will likely see a more significant revision than normal.

The November result from the RP Data-Rismark index for dwellings in capital cities has revised up from +0.1 per cent (s.a.) to +0.4 per cent (s.a.) based on additional sales information. This marks the largest month-on-month improvement in Australian home values since May 2010.

The RP Data-Rismark ‘rest-of-state’ index, which covers Australia’s regional markets, has also revised up in November from +0.3 per cent to +0.5 per cent (s.a.). This is the most significant increase in regional house values since November 2010.

Over the December quarter, Australia’s capital city home values declined by -0.5 per cent (s.a.).

RP Data’s director of research Tim Lawless, said, “The December quarter was the year’s smallest quarterly decline. According to our index, capital city home values fell by -1.5 per cent (s.a.) in the March quarter, and by a further -0.8 per cent (s.a.) in each of the June and September quarters. This rate of decline had decelerated to -0.5% by the final quarter of 2011.”

In 2011, Australian capital city dwelling values experienced a capital loss of about three and a half per cent. Regional house values fared a little better, correcting by around three per cent. This compared to the 14-15 per cent decline in Australian shares. Adding in rents, the gross total return to Australian property investors was slightly less than one per cent over 2011.

Rismark’s managing director Ben Skilbeck said, “The month of December is characterised by a significant lull in activity and the preliminary index results have likely been influenced by some more volatile Melbourne and Perth estimates. We expect to get better clarity on the monthly movements as more information is reported.”

“Sydney currently has the largest volume of reported sales in December. In seasonally-adjusted terms, Sydney dwelling values rose by 0.4 per cent in the month of December. In the December quarter, Sydney dwelling values are up a total of 0.7 per cent (s.a.)” Mr Skilbeck said.

RP Data’s Tim Lawless observed that rental markets continued to strengthen in December.

“Weekly rents across the capital cities were up 1.0 per cent over the December quarter and are now 6.3 per cent higher than at the same time last year.”

“These higher rental rates combined with the slide in property values have improved investors’ yields. The average capital city dwelling is now offering a gross rental return of 4.6 per cent after a consistent trend upwards since mid-2010 when the typical capital city dwelling was yielding just 4.1 per cent. Darwin and Canberra are the highest yielding locations for property investors while Hobart, Brisbane, and Sydney provide gross yields that are better than average,” Mr Lawless said.

On the outlook for the year ahead, Rismark’s Ben Skilbeck commented, “We expect that the RBA’s interest rate cuts in the final two months of 2011 will lend further momentum to housing activity as transaction volumes pick up over February and March after the seasonally slow months of December and January. If financial market pricing for substantial additional RBA rate cuts proves accurate, we could see a stronger-than-expected bounce-back in housing conditions.”

“Housing affordability in Australia has experienced a striking improvement in recent times. While disposable household incomes on a per household basis rose by five per cent over the year to September 2011, Australian dwelling values have declined by 3.4 per cent since September 2010. As a result of the RBA’s rate cuts borrowers can now get fixed- and variable-rate home loans as low as 5.9 per cent and 6.14 per cent. Rismark’s research shows that disposable incomes per household have risen about 15 per cent further than Australian dwelling values since the end of 2003. This helps account for the decline in Rismark’s national dwelling price-to-income ratio, which is as low as its been since 2003” Mr Skilbeck said.

RP Data’s Tim Lawless added, “While global uncertainty and a stagnant local labour market could weigh on the consumer’s mindset, we are nevertheless observing improvements in monthly housing finance commitments. RP Data’s leading indicators on average selling times and vendor discounts are also starting to look healthier. There is no doubt that additional interest rate relief in 2012 would afford a very welcome cushion to the housing market.”

AUSTRALIAN housing markets displayed a generally resilient performance in 2011, reflecting the inherent security of residential real estate in this country, particularly when compared with housing markets in similar open-market economies.

The year was always set to be a period of correction for Australia’s housing markets following the unsustainable growth in house prices recorded through 2009 and 2010.

Between January 2009 and June 2010, Melbourne’s quarterly median house price rose by nearly 30 per cent, with Sydney’s up by almost 20 per cent over the same period. All other capitals also recorded big rises in house prices over those 18 months.

Housing affordability crashed by the end of 2010, with surging house prices and rising interest rates combining to send buyers into hibernation.

Australian Property Monitors data has revealed that capital city housing markets have generally performed encouragingly in 2011 despite the pressure on housing affordability generated in 2010 and a mixed economic performance in 2011.

The national median price for houses over the year to October 2011 fell by just 1 per cent compared with the previous year, with median unit prices rising by 1.2 per cent over the year. The 2011 result follows a 17 per cent rise in the national median house price over the year to October 2010 and a 12.2 per cent rise in the median unit price over the same period.

The best capital city performers were Melbourne and Sydney, where annual median house prices rose by 1 per cent. Darwin and Adelaide house prices were flat and Hobart down 1.5 per cent.

The worst performers over the year were Brisbane and Perth, where annual median house prices fell by 3.5 and 4.75 per cent respectively.

The unit market clearly outperformed the housing market over the year to October 2011, with Sydney recording median unit price growth of 2 per cent followed by Melbourne and Darwin up by 1 per cent. Brisbane and Perth were again the underperformers, with annual unit prices falling by 1.3 per cent and 3.5 per cent respectively.

Bureau of Statistics data confirms the solid performance by Australian housing markets in 2011, with the number of owner-occupier housing loans rising by 2.4 per cent over the 10 months ending October compared with the same period in 2010.

New South Wales was the best performer with an increase of 8 per cent, with Western Australia surprisingly in second place with growth in home loans of 7 per cent over the year, courtesy of a surge in the past three months – indicating perhaps growing late-year momentum in that market.

By contrast, the number of home loans approved in Queensland in the year to October fell by 8.4 per cent compared with the same period in 2010.

The nature and strength of Australian housing markets in 2011 was always to be determined by the underlying supply and demand characteristics of individual markets and the strength of national and local economies.

In addition to the affordability barriers created by the prices surge and interest rate rises of 2009 and 2010, housing markets have had to encounter unexpected headwinds in 2011. The impact of the central Queensland and Brisbane floods was not restricted to the local housing markets. National economic output was affected through reduced coal exports and the cost of the reconstruction levy. Higher prices for fruit and vegetables also affected household budgets nationally.

The impact of catastrophic natural disasters on the national psyche and confidence cannot be underestimated, particularly given Australia’s recent propensity for financial conservatism, especially when it comes to buying or borrowing.

The Japanese earthquake and associated tsunami in March also contributed to lower economic growth and reduced consumer confidence.

Stalling economic growth in 2011 was also a product of continued mixed performances by various industry sectors, particularly retail, manufacturing, tourism and construction. As a consequence, all capitals recorded rises in unemployment through mid-year. All these factors combined to subdue consumer capacity and confidence and consequently dampen home buying activity through 2011.

Most Australian capital city housing markets are, however, set to record growth in median prices over 2012 as the national economy gathers strength. The Australian economy is primed to expand strongly on the back of a significant resources boom with the Organisation for Economic Cooperation and Development predicting gross domestic product will increase by 4 per cent over the year.

Melbourne, Adelaide and Hobart will be the underperformers in 2012, with median house price growth of between zero and 5 per cent.

Melbourne’s balanced housing supply and demand mix offers buyers a wide choice and it remains the most tenant-friendly capital city rental market. Affordability barriers, however, remain for home buyers.

With the Victorian economy showing signs of running out of puff, particularly as the recent construction boom abates, the housing market is set to drift sideways though 2012. The possibility remains of some growth in median house prices by the end of 2012 as the impact of a strong national economy filters through.

Dr Andrew Wilson is senior economist for Australian Property Monitors.

Source: BusinessDay

www.news.domain.com.au

While swimming is a great form of exercise, the downside is that pools require vast amounts of water. Just to fill the average backyard pool takes 50,000 litres – and that’s roughly one third of the water used by an average person in a year.

Even more water is needed for regular top-ups. All up, a home with a pool uses 10 per cent more water than a home without a pool.

But surprisingly, water isn’t the only conservation concern – swimming pools are energy intensive too. According to the NSW Government, running a pool pump will increase your household energy use (and your carbon footprint) by 17 per cent and that’s not including energy needed for pool heating.

So does this mean we should fill in our swimming pools? Has the backyard pool become an extravagant luxury this planet can no longer afford? While we can argue back and forth on the pros and cons of a swimming pool there are a number of ways to cut down on pool energy and water use.

Slash water wastage

An uncovered pool can lose up to one-and-a-half times its total volume in one year through evaporation. In Sydney and Brisbane, rainfall can come close to replacing half the evaporation, assuming that it falls at the right time and in the right amounts so the pool doesn’t overflow. Yet in a dry city like Perth, rain compensates for only 10 per cent of the water lost.

There is one really simple way to save water – invest in a pool cover and reduce evaporation by up to 97 percent. For an outlay of $500 – $1,500 you can purchase a cover that will also prevent heat loss at night, thereby extending the swimming season and saving on heating costs.

As an added bonus, covers also keep leaves and dirt out of the pool and reduce the evaporation of the chemicals used to keep the pool clean.

The type of filter you use can also make a big difference to water efficiency. Sand filters can waste up to 15,000 litres of water each year because they require backwashing to clean the filter. Cartridge filters, on the other hand, can be cleaned with a quick rinse from the hose, saving water and reducing the amount of pool chemicals dumped into the sewer.

Finally, make sure you have no leaks – one drip per second adds up to 7,000 wasted litres a year.

Top up with rainwater

No matter how vigilant you are at preventing water loss, the pool will need an occasional top-up. A simple idea is to attach an inexpensive rainwater diverter to a downpipe to direct water into your pool. Some models on the market can also prevent the first flush of leaves entering your pool.

Just bear in mind that during a large downpour you may need to divert the flow back to the stormwater to ensure the pool doesn’t overflow. A better but more expensive solution is to install a rainwater tank so you can store water for when you need it.

Create a zero-emission pool

It’s an expensive exercise to operate your pool pump continuously – just running it for eight hours a day will cost about $650 per year and emit four tonnes of greenhouse gas emissions.

The solution is to purchase a solar pump that will cost nothing to run.

Many pool owners like to extend the swimming season by heating their pool – but how do you avoid puffing more greenhouse gases into the air? The answer is to go solar.

If your roof is unsuitable, a heat pump is another greenhouse friendly option. Heat pumps work by absorbing heat from the air and transferring it to stored water – a bit like a reverse refrigerator. While they use electricity, the amount required is tiny. Traditionally used for household hot water they are now available to heat swimming pools. Since warm water evaporates faster than cold water it’s even more important to cover a heated pool – it will also reduce heat loss.

Also crucial for optimum operation is an easy-to-install solar controller that monitors and regulates water temperature.

Cut down on chemicals

Pools use rather a lot of nasty chemicals – of which chlorine is the most significant. The concentrated liquid form of chlorine, sodium hypochlorite (or bleach), is extremely corrosive and regarded as highly toxic by the US EPA. For these reasons it should be securely stored and kept out of reach of children. It is acutely toxic to aquatic organisms, which is another reason to avoid sand filters, which create high volumes of chlorinated backwash.

The need for chlorine can be minimised through your choice of water treatment system. UV and ozone systems cut down the amount of chlorine needed by 70 to 80 per cent, and ionisers also reduce the need for chlorine.

Salt chlorinators have the advantage that you don’t need to handle chlorine although you’ll still end up with sodium hypochlorite in the pool solution.

You can also reduce chlorine use by keeping your pool clean and preventing its evaporation with a pool cover. Avoid locating plants that drop their leaves close to the pool and ensure filters are cleaned regularly. To avoid chemicals altogether consider a natural swimming pool.

The upshot?

Pools may be an unparalleled summer luxury – let’s face it, there’s nothing quite like a midnight dip on a hot summer night – but they are certainly not the eco-friendliest addition you can make to your backyard.

If you are going to have a pool, there are ways to make yours the greenest in the neighbourhood. With rainwater and solar power, you can reduce your pool’s impact to near zero.

Of course, for those of us lucky enough to live near the sea, a river, lake or mountain stream, nature provides the greenest swimming pool of all.

Read more here.

Story source: www.yonderr.com.au

The property market will be drawing a collective sigh of relief as the year comes to a close.

As we look back on how the market performed in 2011, we may well see an overall correction of up to 10 per cent – a significant drop for the property market but a fraction of the sharemarket correction of 2008.

As we gaze into the crystal ball and wonder what 2012 has in store for home owners and property investors, there are a few indicators that suggest we are entering calmer waters.

With Europe in crisis, the US economy anaemic and China cooling, interest rates are on the way down. Experts predict the Reserve Bank will cut rates on Tuesday by 25 basis points and there will be a further reduction of up to 100 basis points throughout 2012.

Falling interest rates instantly increase affordability and entice people back to the market. Buyers rushed back in 2001 and 2009 mainly due to falling interest rates. The main difference next year is that it is unlikely to come packaged with increased first home buyer incentives.

Property is a great Australian pastime and this continues to be the case.

Web statistics show that, although competition for property was soft in 2011, web browsing continues to be very high. Nielsen’s online analysis of real estate portals suggests more than 3 million Australians search for property each month. That means about 15 per cent of the population is actively looking at property at any onetime.

This activity flows on to the physical market, with many agents reporting high numbers at inspections for good quality homes. Despite the level of interest, many people believe that 2011 has not been the right time to buy.

This means first home buyers and investors have stayed out of the property market. The effect is increased demand for rental property and a lowering of supply. As a result, we are likely to see rental yields lift next year.

According to the Reserve Bank, household savings rates are at their highest levels since the mid-1980s. They have been moving up since the mid-2000s, reaching 10.5 per cent of disposable income in the June quarter.

Many borrowers have been making substantial excess principal repayments in recent years and this will increase their equity and cash flow positions.

For many people, myself included, money begins to burn a hole in our pockets. The people who have been saving and have job stability – which is 95 per cent of the population – will start to realise the sky is not falling and will begin to make a move.

All markets are cyclical and often the greatest period of growth comes directly after the biggest falls.

I think when we look back on 2012 in years to come these factors will likely result in a bounce in median values, and the market will be back to where it started before 2011 hit.

Mark Armstrong is an independent property analyst and creator of propertytycoon.com.au, Australia’s first online auction tipping competition.

Source: www.domain.com.au

Economists are divided on whether borrowers will get a second interest rate cut in as many months on Tuesday.

Seven of the 14 economists surveyed by AAP say the RBA will cut the cash rate to 4.25 per cent from 4.5 per cent on December 6.

On Melbourne Cup day, the Reserve Bank of Australia (RBA) cut the cash rate from 4.75 per cent, saying that recent information suggested inflation had been contained.

With inflation no longer a problem, the bias for the RBA is now firmly leaning towards rate cuts, with 10 of the 14 economists forecasting rate cuts by the middle of 2012.

Citigroup head of economics Paul Brennan is expecting the RBA to cut rates on Tuesday, despite expectations of strong economic growth in the September quarter.

"We see this as a policy of least regret given that the outlook for global growth has continued to weaken in the past month to well below trend," Mr Brennan said.

"We see scope to lower the cash rate to the bottom of the neutral range over the next few months, which would imply a cash rate of four per cent over the next three months."

The biggest risk to economic growth comes from Europe, which may well go into recession, or start another financial crisis, as several members of the euro struggle to meet debt repayments.

There are also local risks to economic growth.

In the past month the RBA, Treasury and the Organisation for Economic Co-operation and Development (OECD) have cut economic growth forecasts for 2012.

In addition to that, official figures for October showed a 10.7 per cent fall in building approvals and retail spending only rising 0.2 per cent.

On the other hand Australia’s mining boom is still going strong, with the sector making its biggest ever contribution to economic growth.

Nomura Australia chief economist Stephen Roberts said he doesn’t expect the cash rate to move for the foreseeable future unless something bad happens overseas.

"My forecast is that they are going to leave it at 4.5 per cent," he said.

"I’m assuming they will hold it neutral all the way through to the end of 2012 but my proviso is if Europe generally does go to hell in a handbasket, then they can drop interest rates a long way."

NAB senior economist Spiros Papadopoulos said the RBA won’t cut on Tuesday but by early next year the pressure will build for another rate cut.

"Obviously there’s a risk that they might cut interest rates next week, given everything that’s been happening offshore in the last couple of weeks," he said.

"On balance, given the fact that the domestic economy has been holding up okay we don’t think they need to rush in to cutting rates."

Story source: www.ninemsn.com.au

Merry Christmas and Happy New Year - Santa has gone for a swim!

With the festive season fast approaching and the Christmas decorations popping up everywhere I would like to wish you all a safe and happy Christmas and a prosperous 2012.

Our offices in Lennox Head and Bangalow will be open until Friday 23 December 2011.  After the Christmas break we will reopen on Tuesday 3 January 2012 to plough, head first, into the new year.

Keep safe, keep happy and keep in touch with those you love.   Lois

It was very exciting for Lois Buckett Real Estate to recieve the Lennox Head Chamber of Conmmerce  Business Award for Professional Services 2011.

Here are Yonika Mantel and Karen Stone accepting the award on behalf of Lois who has been away in Cambodia supporting the orphanage at the New Hope Community in Siem Reap.

 HERE IS WHAT YONIKA HAD TO SAY ABOUT  THE NIGHT:

 Well Karen and I went to the Lennox Head Chamber of Commerce Business Excellence Awards last night at Opes Restaurant and it was a great night!

 We won the “Professional Services Award” which is fantastic – when I sent a text to Lois last night she was thrilled and sent a message back “thanks to all of us”.

 We sponsored the Trade Services Award and the winner of that was Frigid Air, so we got the chance to present that award as a sponsor. I also had the chance to talk a little about Lois Buckett Real Estate, and what a great team we were, and how lucky we were to work with Lois – the theme of the night was “Love Lennox” which is the new initiative from the Chamber as our “catch phrase”. This gave me the opportunity to talk about how much Lois did for the community through sponsorship, supporting local charities, and gave me the opportunity to let everyone know that Lois was in Cambodia volunteering.

 Other winners included Craig Parry Photography (Arts), Retail (Trash Clothing), Hospitality (Seven Mile Restaurant), Trade Services (Frigid Air), Home Based Business (Chem Dry), Customer Service (Fitness Matters Lennox Head) – there were also plenty of other awards but I can’t recall them all.

There was also a President’s award which went to Mavis’s Cafe (after 27 years of being a business owner – Mavis retired at 73 last weekend after selling the shop) and the Business of the Year for 2011 went to the Lennox Head Pharmacy.

 What a team we are Jonika.

Homeowners have been granted a long awaited reprieve, with the Reserve Bank opting to drop interest rates by 25 basis points.

The cut continues what is becoming a tradition, with the Reserve Bank changing the cash rate on Melbourne Cup Day for the sixth year in a row.

It is also the first time in a year that rates have shifted in either direction, with last year’s race tarnished by a surprise 25 basis point bump.

The Reserve Bank’s decision comes after the TD Securities-Melbourne Institute data revealed inflationary pressure was at a 19-month low.

The Institute’s inflation gauge showed a 0.1 percent rise in headline and trimmed mean measures, prompted largely by a massive drop in fruit and vegetable prices.

The rise keeps inflation at a 19-month low of 2.6 percent, well within the Reserve Bank’s target band.

The Reserve Bank last cut interest rates in April 2009. Following a steady climb in 2010, interest rates have stayed on hold since last November.

The last time the Reserve Bank stayed put on Melbourne Cup day was in 2005, midway through the cash rate’s year-long stint at 5.5 percent.

Story source: www.ninemsn.com.au

Bangalow Show Fireworks

As we all know Lois Buckett is an avid supporter of many local entities from Lennox Head Surf Club to the Primary School – with everything inbetween.

Part of her constant “giving back” to the community includes many years of sponsoring the “Buckett of Books” Awards for both Lennox Head and Bangalow primary schools.
Lois would like to congratulate once again the students at Lennox Head for their recent awards.

Annie – August 2011 for being a polite well mananered classroom citizen, producing quality work to a high academic standard, playing in the school band, following the school’s 3 key values, entering university competitions and representing the school in the choir, swimming, athletics and cross country.
Shane – September 2011 for showing respect to others at all times, being a caring, supportive and courteous class member, producing quality work, displaying the 3 key values and trying his best at all times.
Joey – October 2011 for being a quiet and respectful student, treating fellow students fairly, being a supportive Peer Support leader and Kindergarten buddy, consistently demonstrating the 3 key values, being an excellent role model, displaying a quite confidence and mature approach and alwyas pursuing academic excellence.

Lois with her beloved Dotty at Lennox Head

It was a very sad day for Lois and the family on Sunday 23 October 2011 when Dotty, their much loved spaniel, passed away.
The locals in Lennox Head are used to seeing Lois and Dotty on the beach and over the past 13 years she has been a constant companion.
Dotty reached the ripe old age of 91 (in human years) and certainly had a long and happy life filled with love and care.  She is sure to be up in “doggie heaven” by now and will be missed by Lois, Dylan, Eleanor and Mark – as well as the rest of us!

One of the biggest trends in renovating we might be about to see emerge is the mini-makeover.

Think: paints, cupboard handles, tap fittings, wallpapers (yes, wallpapers going up, not coming down) and the polishing of timber floors. Also light fittings and window treatments. Anything that changes the feel and adds a bit of pizzazz without spending the big bucks.

If that sounds like the ’70s revisited, perhaps it is. Hopefully not with such garish results, though.

And yes, if you are thinking – ‘hang on, hasn’t everyone been doing this all along?’ In part you are right. But the difference is the mini-makeover will be used by householders to make do for much longer than in recent years.

Why will we see this replace bigger aspirations – at least for now? It’s a meeting of several forces.

First, the property market isn’t going anywhere in a hurry at the moment – so the belief that you can do a big reno and flip the property to make a good quid is quickly dissolving.

Second, Australians are saving more than we have in years and there’s a propensity to pay down debt. That means making do with what we have and not taking on huge loans to expand our lifestyles.

It’s also dawning on some people that one way to make money off housing in this current market is not to buy and sell in a hurry, but to shake the housing debt as fast as you can and that way lower your overall costs of acquiring an asset that is free from capital gains tax.

More broadly, employers continue to report that the biggest thing employees are chasing isn’t dollars but work-life balance. Money is still important, yes, but there’s a greater focus on living a life outside of the office, and people aren’t jumping ship for an extra $5,000 or $10,000 like they were a few years ago.

So if they are working less and aren’t prepared to move for a bit more cash, it’s a fairly reasonable conclusion that people will be looking to make their dollar stretch further by extending the life of their current home.

There’s another force – again related to the slowdown in the property market. Industry talk says there’s been a general shift in the mindsets of homeowners – people now expect to stay in their homes for longer. And if you’re in for the long haul, you’ve got the luxury to plan and think – ‘right, I’ll paint that old laundry for now and make it last a few more years before we get around to building a new one’.

After all, you’ve got years to live in the house, and you’re not in such a hurry to get it sorted to flick it back on to the market.

It’s all happening at the same time that we are hearing of the re-emergence of the three-bedder as the house to have – but this time with a second toilet attached. For many, that could mean bye-bye to the media room, the fourth bedroom and the extra study. And who needs those, anyway, when you’re watching movies on your iPad and emailing on your smartphone?

A comfy chair and a flip-down desk that can be discreetly packed away into the wall when not in use might suffice for a study.

And with books, DVDs and music all going digital, there’ll be more space in lounge rooms to accommodate that kind of nifty set up.

I’m not suggesting houses will be totally devoid of all books but you can see collections will get smaller – for example why buy a hard copy dictionary for the study when it’s much simpler and easier to use an app on your phone?

There’s been a school of thought in recent years – which persists today, driven in part by property marketing – that it’s cheaper to detonate a house and start again, than renovate. Homeowners are often lulled by the lower prices that large home-building companies advertise.

True, looked at on a square-metre basis, it might be cheaper to build anew than renovate – some say it costs half as much on average. But if you are being more frugal and making use of what you have, then perhaps the renovation would involve a much smaller extra footprint and be cheaper overall.

The awakening on the cost of debt since the GFC is intermingled with this mini-makeover trend. Obviously it’s an awful lot cheaper to use the money you have saved to fund renovations rather than keep increasing the size of your home loan. And if you can spend a few thousand dollars to make your house more liveable and avoid or put off for several years having to borrow $100,000, $200,000, $300,000, you could be much better off financially in the long run.

When working out how much you should spend on a mini-makeover, it’s helpful to calculate what borrowing the money for the major renovation would cost you and do your sums backwards from there.

The trick to extending the life of what you’ve already got without pouring money down the drain, is getting a good picture of where you want to take your property in the long term (which might involve getting a building designer or architect in), and working out what you can – and can’t – live with for now.

For example, if you want to make do with your ratty old kitchen for a few more years, painting it, and replacing the door handles, taps and even the lights might be a good investment. But upgrading the oven or the range hood to something you may or may not use in the new kitchen is possibly a waste of money.

And of course, like any renovation, you need to be well-researched and enter with eyes wide open so you know what the hidden costs might be.

Story by Carolyn Boyd www.domain.com.au

The central bank has decided to keep the cash rate unchanged this month and has opened the door for possible future cuts.

The decision was expected, with all 15 economists surveyed last week by AAP predicting the Reserve Bank of Australia (RBA) would keep rates on hold at 4.75 per cent on Tuesday.

The central bank’s board last raised the rate from 4.5 per cent in November 2010.

But the focus was on the statement accompanying the decision, in which RBA Governor Glenn Stevens indicated he was less concerned that inflation would accelerate.

"The path for inflation may now be more consistent with the two to three per cent target in 2012 and 2013," he said.

That meant rate cuts were now on the table.

"An improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary," Mr Stevens said.

UBS interest rate strategist Matthew Johnson said the RBA appeared to have downgraded its growth and inflation forecasts.

"I think that the bank has gone from thinking that things were too strong a couple of months ago, to being around trend now," Mr Johnson said.

"If there’s a further deteriorating, they’ll ease policy."

He said the statement prompted investors to buy bonds, on expectations that the central bank may soon cut the cash rate.

The December 10-year bond futures contract rose to 95.985 (implying a yield of 4.015 per cent) from 95.96 (4.04 per cent) just before the RBA released its statement at 1430 AEDT.

The Australian dollar dropped to a one-year low 94.65 cents after the statement.

Mr Johnson said Mr Stevens’ statement suggested the bank would be watching unemployment figures very closely, as a gauge of inflationary pressure on the economy.

"But we’re a few months away from having to make that decision."

Mr Stevens said conditions in global financial markets continued to be "very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth."

However, economic activity in China and Asia was continuing to expand, he said.

CommSec chief economist Craig James said Mr Stevens’ statement showed the RBA had become more open to the possibility of lower rates.

"For the first time since the global financial crisis, the Reserve Bank has opened the possibility of rates being trimmed to support the economy," Mr James said.

He said the focus now shifts to October 26, when the Australian Bureau of Statistics releases consumer price index (CPI) data for the September quarter.

The CPI is a key measure of inflation and is used by the central bank in setting its monetary policy.

HSBC chief economist Paul Bloxham said the RBA’s statement was more dovish than recent ones.

"The RBA is keeping a steady hand on the wheel and is more concerned with the inflation outlook," he said.

Mr Bloxham noted that while the European and US economies were slowing, Asia, and particularly China, were going strong or, at least, easing at a steady rate.

Story source: www.ninemsn.com.au

It is always refreshing to hear good news and it is with great pride that I publish this testimonial, revieved from a happy renter.  For me, as a principal and licensee, it is extremely heartening to hear that that culture and environment within our office is something that infiltrates into the larger community and affects people when they are first greeted by my dedicated staff.  So, here it is:

Dear Lois

Thank you for your kind correspondence relating to our recent leasing at LENNOX HEAD.

I have been delighted with the uncommonly high level of service offered by Lois Buckett Real Estate and can offer only pleasing feedback for everyone we have encountered that be Paula de Vos, Simon Rawlins and mostly Karen Stone.

Karen was very effective when communicating with myself and with the landlords. Her efforts led to the two parties reaching a happy outcome. Karen was also good enough to show the property four times while we were attempting to engage a third party to share the rent.

I must also mention the very kind gentleman who mans the office on Saturdays; he had just finished for the day and offered to take my housemate through so that his five year old son could see the property before we moved in.

Paula in particular plays a very important role in the office. Her kind demeanour and fresh appearance makes it very easy and pleasant to pop into the office, and one leaves having been listened to and assisted.

Lastly, your website is very fresh and uncluttered, the colours are beautifully chosen and well balanced. The fonts used are contemporary and clean. The layout and general navigation is more slick and stylish than any other property website that I have seen.

Again, it is noticeable that all of the staff have been very well appointed. I feel compelled to encourage you all to hang in there with the persistent softness of both the rental and sales markets. Keep up the great work!

Yours sincerely

Katie Gold

Interest rates remaining unchanged for a fifth month.

The central bank left its key cash rate at 4.5 per cent, defying widespread expectations that it would increase it to 4.75 per cent.

"It’s a bit of a surprise," said Macquarie senior economist Brian Redican. "The press release (accompanying the RBA decision) looked consistent with an interest rate increase".

"The present uncertainty in the financial markets is keeping the RBA on the sidelines," Mr Redican said, adding ”that higher interest rates will be required."

Holders of a typical $300,000 mortgage are already paying $300 a month more than they were a year ago, when the RBA began the first of six rate rises to return borrowing costs to their long-term levels as the economy bounced back.

The reprieve for borrowers may be short-lived, though, with the big commercial banks flagging their intention to pass on rising funding costs in the form of higher interest rates.

There was speculation such an increase may come as early as today, but National Australia Bank, Westpac and ANZ said no change to their mortgage rates is imminent.
"We have not made any announcements regarding any changes to our standard variable interest rate at this time," said a spokesperson for NAB.

Westpac also ruled out a rate rise until after next month’s Reserve Bank meeting scheduled for November 2.

”Our standard variable rate remains unchanged in line with today’s RBA decision,” said a spokesperson for Westpac.
”We have no current plans to change our standard variable rate ahead of next months’ RBA meeting.”

The Commonwealth Bank said its rates are under review and declined to comment on its likely decision.

Rates outlook

And the prospect of an official rate rise still looms after the RBA hinted strongly last month it will use rate rises to combat inflation pressures from the booming commodity export sector – a suggestion repeated today by RBA governor Glenn Stevens.

”The current stance of monetary policy is delivering interest rates to borrowers close to their average of the past decade. The Board regards this as appropriate for the time being,” Mr Stevens said, in a statement accompanying the RBA decision.

”If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target,” Mr Steven said.

Inflation figures for the September quarter are due on October 27, just days before the central bank’s next interest rate meeting on Melbourne Cup Day.

Financial markets were pricing in an increase of 41 basis points in 12 months’ time – implying at least one more rate rise by the RBA by then – down from 53 basis points prior to today’s RBA decision.

Stocks pared their day’s losses after the announcement, ending about 0.4 per cent lower for the day after being off more than 1.4 per cent earlier.

RBA view

The RBA signalled that continuing doubts about the health of the international economy contributed significantly to its decision to stay put on interest rates this month.

”Financial markets are still characterised by a degree of uncertainty, and are responding both to differences in growth outlooks between regions and evident strains on public finances and banking systems in several smaller countries in Europe,” Mr Stevens said in his statement.

Greece, Spain and Ireland are among European economies struggling to cope with soaring budget deficits and slowing growth.

By contrast, Australia’s economy is showing ”growth around trend over the past year,” with prices for the country’s commodity exports ”very high,” the RBA governor said.

Indeed, Australia’s key economic measures are mostly improving, with the government’s fiscal stimulus spending easing back just as private spending perks up to take up the slack.

Importantly, the quickening growth is yet to stoke a pick-up in inflation, with prices growth moderating from ”the excessive pace of 2008,” the statement said. ”The effects of the rise in tobacco taxes aside, CPI inflation has been running at around 2.75 per cent over the past year. That looks likely to continue in the near term,” he said.

The Reserve Bank aims to keep inflation between a band of between 2 and 3 per cent over the medium term.

Patchy economy

One reason why inflation has been held back so far is that the growth of the overall economy – excluding the booming mining sector – remains patchy.

Data out today on the services industry showed the sector has contracted for the past five months, while retail sales rose 0.3 per cent in August – less than the 0.4 per cent pace expected.

Housing has also been under a cloud with price growth flattening out in major cities while new building approvals have fallen for six of the last eight months.

Other areas of weakness include slow lending growth, implying that banks are holding back on loans to businesses.

Mr Scutt noted that the RBA focused also on subdued credit growth.
"This has been getting little or no coverage in recent times but this will be closely watched in the months ahead…Credit has been weak despite the strong domestic labour market," said Arab Bank Australia trader dealer David Scutt.

"With households unwilling or unable to borrow more at present, it offers a strong indication that household finances are struggling with rates at present levels."

Other economists pointed to the brevity of Mr Stevens’ comments.

”What’s notable is that it is quite a short statement,” said RBC Capital Markets senior economist Su-Lin Ong.  ”There’s virtually nothing about housing or consumption” on the statement, she said.

"It does suggest maybe the RBA is paying a little more attention to what’s happening in Europe and some of the strains in the banking system there," she said.

Even so, "a rate hike before the end of the year is more likely than not," she said.

czappone@fairfax.com.au  BusinessDay

Real estate sales in Australia jumped by 11 per cent during August, official figures reveal.

The property market in the country received a boost as homebuyer confidence strengthened and first-time buyers returned to the market.

With the Reserve Bank keeping official interest rates on hold, property sales across the nation were 10.9 per cent higher than in July, the figures from the Australian Finance Group (AFG) show.

According to the figures, greater competition between lenders on price and policy combined with increasing loan-to-value ratios are also proving beneficial to property investors.

"With property prices in many areas having stabilised, and some lenders prepared to lend up to 95 per cent of the property’s value, property is becoming more accessible to first home buyers and more attractive to investors," he explained.

Indeed, investor activity varied across the states, with New South Wales and Victoria topping the market.

In New South Wales almost 37 per cent of all mortgages sold were to investors, while in Victoria they accounted for 36.4 per cent of the total sales volume.

However, investor confidence in Queensland and Western Australia remained low, largely due to the uncertainty over a possible mining super tax.

Source: www.ipinglobal.com