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

The end of the fiscal year has given me an opportunity to look back on the growth and progress that has been achieved over the past 12 months.

After having invested a great deal of effort, upgrading many of the technology based products and venturing into the social media network, it is rewarding to see and enjoy the fruits of our labour.  The hard work and positive energy in the Sales, Rentals and Holiday Lettings sectors of the business continue to allow the team to offer the best possible service to our valued clients.

Interest rates remained stable and there is the added incentive of zero stamp duty for land sales up to $400,000 and new house sales up to $600,000!  I anticipate Spring 2010 will see a significant increase in buyer confidence in our market place as we move into the Spring and Summer months.

Over the past few months we have seen some staff changes at the Lennox Head Office.

With Alex Kennedy now off & travelling, Diana Joynson has moved into Holiday Lettings & Rentals. Our new face on the front desk is Paula de Vos and I am pleased to introduce Yonika Mantel as my PA.

All in all this is a great team and we are all looking forward to working together and offering the outstanding service we have maintained in the past.

Natalie, Marie, Trish and myself were fortunate enough to attend the Aust Real Estate Conference – AREC 2010 held in Sydney last April. Truly a valuable opportunity to get together with industry leaders and other like minded agents across Australia and New Zealand. To say that the experience was inspiring is an understatement.

Read more about it in our June newsletter!

With 2010 fiscal year end upon us I would like to congratulate my team of hard workers for their effort and dedication which has shown an outstanding growth factor in both sales and rentals, despite the difficult economic climate.

KEEP UP THE GREAT WORK.

You can download a copy of our June 2010 newsletter here

Lois

The string of interest rate rises since October is not deterring borrowers from taking out variable rate housing loans, leaving mortgage holders potentially more exposed to higher repayment costs.

The Reserve Bank, in its quarterly Statement of Monetary Policy released today, said fixed-rate housing loans now account for only about 2 per cent of total – the lowest ratio in a decade.

”This share has been well below its decade average of 11 per cent for almost two years, with the result that the share of outstanding loans at fixed rates has declined substantially,” the RBA said.

Fixed loans mortgage borrowers in the market fell to 4.8 per cent of the total in 2009 from as high as 19.4 per cent in 2007, separate data from the Australian Bureaus of Statistics data and RateCity research show.

Fixed-rate loans, which currently charge an interest rate about 1.5 percentage points higher than standard variable rate loans, demand larger fees for providing borrowers with certainty about monthly costs.

Variable rate mortgages, while offering more repayment flexibility, expose borrowers more directly to Reserve Bank interest rate changes. The RBA has lifted rates six times out of its past seven monthly board meetings – including earlier this week – adding about $300 per month to total repayments for those borrowers holding a typical $300,000, 25-year variable rate mortgage.

Borrowers flocked to the certainty of fixed-interest mortgages during the last cycle of rising interest rates, with the ratio rising to 22 per cent a month over the six months to March 2008.

The average three-year fixed rate mortgage rate was 9.42 per cent in August 2008, according to RateCity. That compares with 7.38 per cent for a standard variable rate today.

”There are still a lot of people out there, still paying these high interests rate for fixed loans,” said RateCity consumer advocate and spokeswoman Michelle Hutchison.

Being locked in also meant those borrowers missed out on tumbling rates over the past two years when the RBA drove its key cash rate to 50-year lows in a bid to avert a sharp economic slowdown.

Outlook changes
Interest rate futures pointed to a rate cut this morning for the first time since August of 2009 as fears unleashed by the sovereign debt crisis in Europe forced central banks reconsider the case for a global slowdown.

As of Friday afternoon, the market was rating the possibility of a rate cut in June by the central bank at a 6 per cent chance – a reversal of previous months when the outlook has been consistently pointed to the prospect of rates to rise in coming months.

The turmoil in financial markets – including steep plunges on Wall Street overnight – has also trimmed the prospect of further rate rises in coming months.

Credit markets are pricing in a cash rate for the RBA of 5 per cent within a year from a current 4.5 per cent.

czappone@fairfax.com.au

Take time out to enjoy - let the Lois Buckett Team do it for you

After the inclement weather that we experienced over the Christmas and New Year break the sun is now shining, surf’s up and the area is bursting with holiday-makers and locals enjoying our beautiful beaches and cafes.

Traditionally January through to April is peak time in real estate for our region and our sales and rental staff have been kept busy servicing our dedicated client base.

Real estate values have continued to show a steady rise and (in line with reports from RPData, EAC, realestateworld.com and domain.com ,indicating that the property market in NSW is on the rise) we anticipate continued success for our clients.

Of utmost importance when considering the marketing of any property is first impressions. 

In Lennox Head, Ballina, Bangalow, Byron Bay and surrounding areas the presentation of any property can easily make the difference in a sale.  A fresh and tidy appearance with a welcoming feel ensures that prospective purchasers feel comfortable and at ease when they inspect – what a difference some fresh flowers and a light/airy ambiance can make.

At Lois Buckett Real Estate our staff is trained to help you optimise your property and assist you in choosing the best possible path for marketing – with special attention to detail.

Lois Buckett Real Estate has the edge on the real estate market.

Lois Buckett Real Estate

A Valued Member in the Community!

 

 

Presentation of book award to student.

With a view to giving back to  the community Lois contributes to Lennox Head Primary School and Bangalow Public School with her “Buckett of Books” award on a monthly basis and constantly gives of her time and money to many worthy local groups, including Lennox Head Surf Club, Bangalow Bowling Club and The Buttery.

Lois Buckett supporting the Team

 

 

Pro-active in so many community based activites Lois and the team are involved and caring participants. 

 

 

 

After a recent trip to Cambodia Lois became involved in assisting the Self Help Community School and the New Hope Community Centre and remains a constant and generous benefactor.

 

Lois Buckett

Hello everyone, this is the new blog for Lois Buckett Real Estate in Lennox Head. On this blog you’ll find lots of interesting information about real estate, houses for sale and rental properties available in the area.

We hope you find the information helpful to you in your search, please feel free to ask us any question about the area and what it has to offer, we look forward to working with you in the near future.