There are times that cause you to take a reality check on Australia’s overriding view of bricks and mortar as investments.

As brown swirling flood waters force thousands of people from their homes in NSW and northern Victoria last week, the images of rivers breaking their banks and gushing through gardens and into homes are enough to make you cry.

When one devastated homeowner declared on national television that he "wasn’t going through this again", his pain was raw for all to see.

Imagine being forced to grab a few precious belongings and leave your home to the will of nature.

Yes, it’s only brick and mortar, and not lives, but for many people – if not almost everyone – a home is part of what defines you. It’s full of memories. And most poignantly, brimming with dreams of times ahead.

A spokeswoman for the Bureau of Meteorology says the recent high rainfall is a result of La Niña and is not necessarily related to longer-term climate change.

Nevertheless, given that this week’s widespread flooding follows last year’s wave of floods, cyclones and bushfires, the question facing many Australians is whether this is situation normal, and if so, do we need to adapt our style of housing, or the infrastructure around it?

In a speech given by Insurance Australia Group chief executive Mike Wilkins late last year, he called on governments to learn the lessons from our recent experience to make our communities safer.

"If we don’t take action, we’re doomed to repeat this cycle of destruction, devastation, slow rebuild and lost productivity over and over again into the future," Wilkins told the American Chamber of Commerce in December.

"In recent times we’ve seen significant new areas of land being opened up for development in the rapidly growing areas around the north west of Sydney. Much of this region is located on the Nepean floodplain and has historically been subject to severe flooding.

"We believe the planning authorities responsible for releasing these areas of land must ensure mitigation work is conducted prior to any new building, so it is not subject to flood if the outskirts of Sydney experience a wet summer similar to Queensland’s."

Wilkins also highlighted the tragic Queensland floods of last summer.

"[They] were not the first times that many of the areas around Brisbane, Ipswich, Toowoomba and Emerald had been severely flooded. It will also not be the last time. In these areas, it is not a question of if; it’s a question of when the next flood will come.

"Notwithstanding this inevitable pattern, plenty of development – homes, sheds, businesses, even infrastructure like substations – was allowed to spring up in areas of unacceptable risk around Brisbane and Ipswich over the intervening drier years."

Wilkins said it was irresponsible to rebuild in a way that "ignores clear historical records". "We do a great disservice and potential harm to our community if we grow apathetic in our approach to rebuilding," he said.

Wilkins put forward a number of solutions, which are listed verbatim below:

• Increasing the woefully inadequate level of investment in mitigation infrastructure. Protective works could include barrages for unusual tides, levee banks, sea walls, properly maintained fire breaks and access trails, improved drainage and dams.
• Planning authorities must be a lot tougher and more transparent about their planning and zoning decisions. Development simply shouldn’t be allowed in areas of unacceptable danger.
• Strengthened building standards will ensure we are adequately prepared for changing risks.

"The improvement to building codes in cyclone-prone areas in north Queensland following Tropical Cyclone Larry meant that – notwithstanding its enormous size and destructive wind speeds – the level of damage incurred during Tropical Cyclone Yasi … was surprisingly low," Wilkins argued.

Story source: www.domain.com.au

The board of the Reserve Bank of Australia has left the official cash rate at 4.25 percent for the second month in a row.

The move was widely expected with inflation at the bottom of the RBA’s target band of 2-3 percent and global economic conditions improving.

However, the news may not be met with the rapturous receptions of the past with many lenders now lifting their rates independently of the RBA.

"The rates that borrowers pay have been creeping away from the Reserve Bank’s cash rate movements since the global financial crisis," RateCity CEO Damian Smith said.

"Last month proves that all variable rate mortgage holders are vulnerable to rate hikes, regardless of what the RBA does."

The central bank left rates on hold last month but that didn’t stop the big four, ANZ, Commonwealth Bank, NAB and Westpac from lifting their standard variable mortgage rates between 0.06 and 0.10 percent.

Westpac-owned St George went even further by hiking their rates by 0.12 percent.

The RBA was expected to ease rates last month but shocked observers when it left the rate unchanged, citing the resilient domestic economy and improved global outlook.

The decision not to move rates suggested the RBA had confidence in the local economy, buoyed by low unemployment and continued demand for labour.

However, the new dynamic the banks have set up by raising rates independently of the RBA mean borrowers could be hit by a rate rise at any time.

"Borrowers should expect frequent small changes in rates, perhaps as often as every month," Mr Smith said.

Source: www.ninemsn.com.au

With about 40 per cent of food wasted in Australia, we wondered what would happen to that number if we were forced to pay for every piece of food we threw away?  In South Korea, throwing away food means paying more for waste collection, and more waste means more carbon emissions.

South Korea has had a pay-as-you-go system for years, and will soon implement an aggressive disposal management system that will charge businesses and residents for the exact amount of food waste they throw away.

There are lots of reasons why 40 per cent of food is wasted in Australia. Some of the reasons are: large portion sizes at restaurants, regulations that make it difficult for retailers to donate fresh food to charities, and confusing “sell by” or “best before” dates that lead to too much food going from shelf to garbage bin. This issue is similar in the US and the UK where the food waste is also 40 per cent.

Korea’s rate of overall food waste is comparable to Australia. For fans of Korean food, the joys of such a meal are also what contribute to the country’s excessive disposal of food. All those tiny side dishes (pan-chan) from kim chee to glass noodles to fresh greens – not to mention the leftovers from a large restaurant meal of meat dishes like galbi and bulgogi – add to the headaches Korea experiences with waste management.

Overall, Korea has an efficient waste diversion system. Residents and businesses must buy specially labelled garbage bags that are available for purchase everywhere. The less you throw away, the less you spend. Nevertheless, food waste has increased dramatically in Korea as the country has experienced a long economic boom, and therefore the government is taking much stronger measures.

During 2012, the 50 million Koreans will create up to 170,000 tons of food waste daily, or about 350 grams (over 12 ounces) per person per day. The costs are high: The Korean government has estimated that the annual loss of economic value exceeds $1.5 billion. The annual disposal cost for food waste alone in Korea is more than $600 million a year and rising.

For years, food waste was treated at sewage plants, which then discharged the resulting grey water out into the sea. And that grey water is not in the country’s long term interests for a country and cuisine that boasts plentiful seafood and seaweed – not to mention the coastline surrounding the country. So, a huge shift is in order beginning in 2013.

Public service announcements have long exhorted Koreans to be more conscious about recycling and waste diversion, but in a country with little landfill space, the Korean government has decided to take more drastic measures. And with the old ways of treating waste disappearing a little over a year from now, Korea’s education ministry is tasked to push for a minimum 20 per cent reduction in food waste. Technology will have a strong role.

SK Telecom, Korea’s largest wireless carrier, has designed food waste bins with equipment that will weigh food waste to the nearest gram. Using radio frequency identification (RFID) technology, the bins will then calculate the disposal fee based on the exact weight, which will then be debited from the user’s public transportation card or will be processed for payment on a linked credit card.

The process is relatively simple. The user taps the bin’s card reader with his or her assigned card. The disposal lid opens immediately, and allows the user to toss in the table scraps from last night’s dinner. The cover closes, weighs the food waste, and informs the user immediately of the total weight and subsequent fee. The responsibility for collection, transport and treatment of food waste then falls on the company contracted to empty
those bins.

This next step in food waste is remarkable considering how strongly Koreans have embraced recycling. Koreans have to buy four different types of garbage bags depending on the waste they buy and neighbours will rat out neighbours if anyone is straying from following the rules. Stacks of cardboard on street corners eagerly wait pickup every morning, and reminders in Korean that say “Don’t waste wastes!” are emblazoned on garbage bins.

Source: www.earth911.com

Story by Judith Bence, source: www.yonderr.com.au

It’s one of the quickest ways to give a home a facelift, but painting like the pros requires patience, attention to detail, a steady hand and yes, tedious preparation.

It’s a messy business, with lots of bending, twisting and negotiating ladders, and inevitable dithering over the crucial colour scheme.

Decide up front who lands the back-breaking tasks of heavy sanding and painting the ceilings.

Painting is not just about getting the paint onto surfaces successfully. There’s an awful lot of work involved in not getting paint where it shouldn’t be.

To start

Start your painting project with some measurements. You will need to know how many square meters you will be painting.

Asses the surface you want to paint, is it fresh plaster or cement, is it old flakey paint or wall paper, is it a relatively new finish?

Tools of the trade. A wall scraper and painter’s tape

How dark is the current colour compared to the new colour you’ve chosen? If the old paint is very dark and your new paint is light, you may need an undercoat or have to apply more coats of paint.

What’s the quality of the surface? Is it a nice smooth surface or is it a bit rough?

If you can’t decide on a colour scheme, get some sample pots and experiment.

Surface prep is time consuming but will give the end result a more professional look.

Remember, colours can look quite different in different lighting conditions, don’t just rely on looking at the paper samples in the shop.

Paint comes in a number of finishes from matt to gloss and are either acrylic or enamel or oil-based.

Flat paint hides flaws in old walls. A semi- or high-gloss paint works best on woodwork, such as door and window frames, and skirtings. Low-sheen is the most popular finish for walls.

Careful cutting in gives a much better finish.

Wear and tear is another point to consider. For example, high traffic areas or walls subjected to small sticky fingers will call for a tough, easy maintenance finish.

Most surfaces require two coats of paint, and if you’re painting over a dark colour or a new wall, you’ll probably need an undercoat.

That said, many paint companies now offer "one coat wonders", so it’s worth having a good browse of the paint shelves.

Fantasy land: you will not look this cute or happy when you’re painting. Wear old clothes or overalls and cover your hair. Gloves are a good idea too.

Preparation

You might be a wiz with a paint brush and roller, but all your efforts will be in vain if you haven’t meticulously prepared the surfaces.

Cover the floor
Be generous with the drop sheets, taping them to the walls so they don’t slide around. Make sure the drop sheets are tough enough to resist tearing if you’re going to be moving a ladder around.

Good lighting is essential to ensure even coats of paint.

Light and ventilation
Make sure you’ve got good even lighting where you’re working so you see what you’re doing clearly. Wall surfaces and paint colours will look different in different lighting conditions, especially if it’s daylight coming from a single window.

Use a good bright portable light for best results. And check what you’re doing from different angles in the room.

Whenever using chemicals and stirring up dust make sure you have plenty of fresh air.

Move the ladder, don’t risk a fall or back strain by reaching too far.

Surfaces
Older walls will need any loose paint scraped off. Holes and cracks need scraped out to remove loose material and then patched with a suitable filler.

Blade scrapers are great for tidying up old paint jobs that left paint on window glass.

Be very careful painting over old paints, some of them are oil-based and cannot be painted over directly.

Not all fun and games: Don’t be fooled by DIY shows on TV, painting is hard work … hijinks with a paint roller in the an episode of The Block.

Water-based paint will stick to oil-based paints but only if the surface is prepared correctly. Get some professional advice on this one.

Filling and sanding
The rougher the overall wall surface is to begin with, the more your nice neat filled spots will stand out as shiny patches. Roughen up your patching a little if you want it to blend in.

Old, chipped woodwork will look exactly that if you don’t give it a really rigorous sand, starting with coarse sandpaper and finishing with a fine grade.

Use a smaller bucket to carry with you as you paint.

Give the walls a good sand over rough or shiny surfaces too and a quick sand over all the rest.

Vacuum up all the dust and lose bits of paint and plaster once you have finished preparing the surfaces.

Follow this by washing with sugar soap.

Painter’s tape
Use masking tape to protect surfaces such as light switches and skirting boards. In fact if you aren’t 100% confident of having a very steady hand… tape up the edges of everything you don’t want paint on.

A quick wipe with a rag will remove some stray brushstrokes on glass or other shiny surfaces, but it’s much easier to remove painters tape than unwanted paint, wet or dry.

This sounds like a lot of fiddling – and it is – but you just won’t get really good results without it.

Painting

Tools
Before you take the lid off the paint can, make sure you are ready to go with all your tools and equipment.

There’s nothing worse than starting to paint only to find you need to make another trip to the hardware shop or garage.

The type of surface you’re painting and the type of paint on will determine they types of brushes and rollers you will need. Always buy the best brushes and rollers you can afford, they will make the paint job look more professional.

Buying cheap rollers might seem like a good idea but not when you’re left with fuzz in your fresh paint or extra work because the roller won’t hold enough paint.

Don’t put too much paint in a roller or brush. You want the paint applied evenly but not too thick on the walls. Use a nice firm pressure when using a roller.

Step one – edges
Start painting by cutting in around all the edges with a brush or a paint edger

Make sure your cutting in doesn’t dry before you start filling in with the roller.

Using a small container for your paint as you walk around the room is easier than moving a heavy tin of paint with you and is less dangerous to carry up a ladder.

Step two – walls
then use a roller to apply the paint in long, even zig-zag sweeps, finishing in parallel strokes that even out any overlapping paint edges.

Rollers will make painting walls much faster and give a far better finish than brushes.

You don’t want it dripping down the wall or on the floor and certainly not flying off the ends of the roller in globs.

Cutting in around light fittings and wall fixtures at the same time as you roll will help to avoid a patchy finish if you have a large area and won’t start using the roller before the edges dry.

Using a straight edge tool will help keep paint off adjacent areas if you haven’t taped them up. This tool is especially useful for painting right down to the bottom of walls in carpeted rooms.

The paint is for the wall not for the tool, just put paint on the wall side of the brush. Wipe the straight edge frequently to make sure it’s paint-free against the surface you are protecting.

Extension poles are a must if you’re painting high ceilings, it will be faster and much kinder on your back and neck, not to mention reducing the dangers of trips up and down a ladder.

Use roller tray liners for easier clean up and less waste.

Drop sheets are essential but they don’t save floors from paint you walk from the room you’re painting to another.

Try to clean up spills on your drop sheet as they happen, but always check your shoes or take them off before you step off the drop sheet onto unprotected surfaces.

Wrap brushes and rollers in plastic to prevent drying out or needing to wash if you’re taking a break or continuing the following day.

Do…

• Thoroughly stir the paint before starting
• Always work your way down, starting with the ceilings first
• Choose the best quality paint brushes and paint you can afford
• Paint in manageable patches to ensure you’re not going back over paint that’s started to dry already.
• Tie up/cover your hair unless you want paint speckles that don’t wash out once dried.

Don’t…

• Use a cheap masking tape. Buy proper painter’s masking tape that won’t remove the paint or chunks of plaster when you pull it off
• Overload your roller or brushes with paint
• Stir paint with a brush
• Try to paint over crumbly surfaces you will just get ugly lumps in your paint

Safety tips

• Always wear a dust mask or respirator when sanding or using products with fumes warnings
• Ensure rooms are well ventilated
• Use a fan to assist with ventilation
• Check your ladder is rock-steady before you step on it
• If your building is old, allow for the possibility of toxic lead paint. Further information can be obtained from the Environment Protection Agency on 1800 803 772
• Reduce trips up and down ladders by using smaller paint pots when painting with a brush, use and extension handle with a roller and avoid the ladder completely.

Story Source: www.domain.com.au

When it comes to planning for retirement, paying off a mortgage should be the cornerstone of security.

Question

I am a 49-year-old single female earning $61,317 a year. I pay a compulsory members contribution of 2 per cent to the Public Servants Superannuation Fund.

I have $96,000 in super and another $11,000 in a rollover fund. I have a $232,000 mortgage on a house in the outer suburbs of Melbourne with repayments of $910 a fortnight.

My preservation age is 58 and my Centrelink age pension age is 67. I was hoping to retire well before 67 as I am barely capable of working full time now.

I realise my super balance is inadequate to enable early retirement. In one year I will attain 10 years service and my employer will match my personal super contributions up to 10 per cent.

I receive $911 a fortnight net wages after mortgage, tax and super deductions, so I struggle financially.

If I increase my super contributions it will create even more hardship.

Should I increase my mortgage repayments instead of increasing the super, or a combination of both?

Should I get income-protection insurance and trauma insurance (reducing my net income further), to avoid calamity if I were to get sick? S.M.

Answer

Yes, you can’t go past the offer to match contributions up to 10 per cent and you need to take this up to the full.

However, you also have to put priority on being able to retire in a mortgage-free home and thus avoid a drain on your retirement income. At least you can then rely on the full-age pension to meet your daily needs.

At your current rate of repayment, it will take you some 17 years to pay off your mortgage, assuming an interest rate of 7.3 per cent. Alternatively, you could pay off a loan of about $155,000 over nine years or $130,000 over seven years.

You need to decide whether you can afford this property or whether you are better off relocating to a smaller unit. Or wait until retirement to sell and then buy what you can then afford without a mortgage, but you’ll pay bigger repayments into a bigger mortgage until then.

For now, open a mortgage offset and use it as your main deposit account so that, by using a 55-day credit card, you can keep as much money in there for as long as possible. It’s the most tax-efficient way to handle your money.

Some people suggest salary sacrificing to the maximum and thus getting a tax deduction, then withdrawing a lump sum at retirement and paying off the mortgage.

This may suit those in high tax brackets, depending on whether their super investments make or lose money, but you are already struggling and will be struggling more.

Rollover the benefit from your rollover fund into, say, the AGEST super fund and buy salary continuance insurance through super so as not to reduce the amount you can put into your mortgage offset account.

That, plus your sick pay entitlements will, hopefully, insure against any trauma.

If you have a question for George Cochrane, send it to
Personal Investment
PO Box 3001
Tamarama, NSW, 2026

Helplines

Banking Ombudsman, 1300 780 808
pensions, 13 23 00

Story source: www.domain.com.au, story by George Cochrane

Recycling your old electronics can be daunting and people often come up with convenient excuses to just throw out old equipment or leave them lying on the side of the road without any regard to the environmental impact and the impact on carbon emissions.

Firstly, you can simply recycle your e-waste. Gather up all your old electronics and take them somewhere to be recycled. Avoid council dumpsites and consider calling a business that specialises in e-waste recycling.

Secondly, give some serious thought to donating any old electronics you no longer use but are still usable and in good nick. You would be surprised by the amount of organisations that accept second-hand computers or equipment and find homes for these computers and electronics that allow communities’ to thrive and learn from what you no longer need. This is the type of recycling that benefits the environment and your community!

You may even find individuals who just love gizmos and gadgets to pull apart and experiment with, so don’t hold back with choosing what old electronics you want to give away.

Thirdly, if you’re motivated by monetary as well as environmental rewards, consider reselling your old computer gear. Before I go any further into this I’m going to point out that trying to sell equipment that isn’t up to scratch can be hard, plus if anything’s faulty you just cause yourself more hassle in  the long run.

That being said, good places to start your search for potential customers are eBay and other organisations that allow you to resell your old equipment. You’ll find there are businesses interested in purchasing your old laptop or pc gear as well, which tends to be a fast and simple exchange that’s convenient for both parties.

Also, consider holding onto your pc and electronics for a little while longer if you’re only considering disposing of them for the latest shiny new tech. You may find later on that you’re perfectly happy with what you’ve got for the time being and that you saved yourself some serious cash by not upgrading to the next model.

Finally, ask your friends and family if anyone is interested in scrounging through your box of wires and keyboards for anything they may want. This can be a great way to get some more use out of things that could have been otherwise wasted. Posting on Facebook for any interested individuals is a great place to look, or just send out a mass-text (whatever feels right).

Remember that computers and electronics are some of the more harmful products out there that damage our environment. So give some of these ideas some thought next time you’re upgrading your electronic gadget and think about reducing your carbon footprint and helping to save the planet.

Source: http://intandem.ca/blog/5-ways-to-dispose-of-your-electronics-responsibly

Story source and to find out more information, please visit www.yonderr.com.au

There’s still money to be made out of property if you are careful and hard-headed.

It has been the wealth strategy of a generation. Buy a home. Look after it, improve it, upgrade it. And if cash flow allows, gear up to your eyeballs to buy more property for other people to live in. For the baby boomers and for many from generations X and Y, it has been an easy path to success.

But the prospect of lower rates of capital growth and possibly even falls, if the doomsayers are right and the global economy takes another big turn for the worse, has changed the outlook for property investment.

Home owners and investors will need to be smarter about property. Solid rental yields, buying the right property at the right price and less dependence on gearing will be the key to making money. The days of certain returns made by gearing up and hitching a ride on the market boom are gone. At least for now.

THE OUTLOOK FOR PROPERTY

In November, The Economist magazine said Australian housing prices were still 38 per cent overvalued when compared with incomes and a hefty 53 per cent when compared with rents. Household debt levels in Australia exceeded those in the US at the peak of the boom, which makes us highly vulnerable to falling prices if the worst case of a second crisis – worse than that of 2008-09 – happens.

In December, ratings agency Moody’s said Australian house prices were unsustainable and last month a leading US real estate analyst, Jordan Wirsz, predicted Australian house prices could fall by as much as 60 per cent.

Last week, the Demographia International Housing Affordability Survey found Australia was one of the least affordable countries in which to buy a home. The median house price in capital cities was 6.7 times the median annual household income – with only Hong Kong being more expensive. Sydney was the least affordable city in Australia, with a median house price 9.2 times the average annual household income.

Many commentators say prices might be fully valued, or overvalued, but a crash is not the only way the market can correct itself. The head of property and financial system research at ANZ, Paul Braddick, says talk of a big crash assumes a doomsday scenario for the economy. While not impossible, he says it’s unlikely.

”Our base case is that the labour market will remain soft for the next six months but will start to pick up again in 2012-13,” he says. ”It won’t be a boom in any sense but [the economy] should bottom and start to pick up again.

”But there are risks and that does overlay sentiment. There’s a fear of the unknown and if Europe does implode, how will that affect us? As we saw in 2008 at the height of the global financial crisis, if overseas conditions get worrying enough, the Reserve Bank will react. In 2008-09, it lowered interest rates and boosted the housing market, though that was also helped by the new first-home owner boost and changes to the foreign investment rules, which are less likely to reappear this time.”

Given that, Braddick says the most likely scenario is that house prices will fall further in the next six to 12 months but once they have found a floor, prices should start to rise in line with household incomes. He says that means longer-term growth of about 4 per cent to 5 per cent a year on average, though there will be cycles around that.

The chief economist at AMP Capital Investors, Dr Shane Oliver, says historically, prices get ”stuck in a range” for five to 10 years after they have been pushed to extremes. He says research on house prices since 1920 shows they have risen about 3 per cent a year after inflation in the longer term.

He says in the 1990s, prices were below that long-term trend (see graph below) but they took off in the early 2000s and are now about 25 per cent above the trend line. Though not predicting a US-style collapse, Oliver says it is hard to see prices growing at the rate they were because affordability is so poor and people are more reluctant to take on debt.

Australian Property Monitors (APM) is predicting national growth this year of 3 per cent to 5 per cent (see table above).

It says Brisbane, Perth and Darwin have the potential for higher growth while Melbourne, Adelaide and Hobart are likely to underperform.

POTENTIAL STUMBLING BLOCKS

The managing director of SQM Research, Louis Christopher, says buyers need to ask what would trigger a major selloff in housing and assess the likelihood of those events happening. One strong trigger (thanks to high levels of household debt) would be a return of rising interest rates. ”All it took was the cash rate to get to 4.75 per cent to cause problems in this country,” he says.

He says buyers also need to watch for signs of the banks reducing loan-to-valuation ratios. He says house prices in most big British cities fell by about 20 per cent when British lenders suddenly cut lending ratios from 100 per cent or more to 80 per cent.

”Think about it,” he says. ”If you had a $50,000 deposit and someone was willing to lend 95 per cent, you could borrow up to $950,000. But if they would only lend 80 per cent, you could borrow $200,000 and your maximum purchasing power would be cut from $1 million to $250,000. You can see the havoc that would cause in the market.”

Why would banks cut their loan ratios? Like most things, it comes back to Europe. At worst, if Europe unravelled, we would be likely to see significant bank defaults that would limit the ability of other banks to raise finance outside their own countries. Australian banks have already raised the threat of another credit squeeze.

Other risks include unemployment rising to levels in which forced sales become a problem (Christopher says SQM Research’s modelling suggests problems would occur if unemployment broke through 7 per cent) and banks lifting interest rates independently of the Reserve Bank’s changes.

Oliver says the most vulnerable are heavily geared buyers, because they are most exposed to negative equity and forced sales. RP Data recently found slightly less than 5 per cent of Australian houses were worth less than their purchase price. Queensland had the highest levels of negative equity while Victorian households had the strongest equity positions. In Melbourne, 1.9 per cent of houses were worth less than their purchase price. However, the figures did not take into account debt, especially mortgage redraws.

The research director at RP Data, Tim Lawless, says coastal lifestyle markets are also vulnerable to a downturn and have already suffered from a downturn in tourism and sea-change migrants, as well as weak demand from second-home buyers. He says many of these lifestyle markets experienced dramatic appreciation before the GFC.

He says markets that had a big run-up in prices during the most recent growth periods are now also potentially more exposed to weaker conditions. ”The Melbourne market, for example, has seen home values appreciate by almost 50 per cent since the start of 2007,” he says. ”Rental yields in Melbourne are now the lowest of any capital city and new housing supply has been much more sufficient than [in] other cities.”

WHERE THE OPPORTUNITIES ARE

In this market, most analysts say the old strategies no longer guarantee success.

Buyers will need to do their sums and ensure they are buying well rather than simply picking the next ”hot suburbs” and riding the boom.

Success will also depend on having the flexibility to decide when to sell. That means buyers will need to keep borrowings at a manageable level so they are not forced to sell at the worst possible time.

Christopher says he is loath to tip particular areas, given that any recovery might not be long-lived. But he does favour the outer ring of Sydney, particularly the western and south-western suburbs.

”We see a big movement to more affordable housing,” he says. ”Rents there have already been rising by about 5 per cent a year, infrastructure has been improving and they have the potential to outperform over the next five years. We think 7 per cent growth there is possible.

”More average and above-average income earners are moving west because they don’t want to raise a family in a unit and it makes the mortgage more manageable.”

APM forecasts growth in Sydney this year will come mostly from middle- and lower-band suburbs, supported by high rents and an undersupply of housing. In his 2012 outlook, the senior research analyst at RP Data, Cameron Kusher, also predicted Sydney might perform better than in 2011. ”Home values across Sydney have increased at an average annual rate of just 4 per cent over the past 10 years,” he says. ”Although value growth has been limited, rents have increased by 5.4 per cent for houses and by 6.4 per cent for units in 2011. Estimated sales activity as at September 2011 was 6 per cent above the five-year average. Sydney’s market continues to be hampered by an undersupply of new housing at a time when demand remains strong.

”Although we don’t expect property values to increase at a rate above inflation, we anticipate Sydney will continue to be one of the better-performed markets, especially considering that when adjusted for inflation, values remain below their 2004 peaks.”

A property adviser at Lachlan Partners, Ana Bennett, says areas along the main Sydney transport corridors ”should do well”, given the undersupply of housing – ”areas that aren’t reliant on having two cars to get to work” – though she says Melbourne is a different prospect.

”The large volume of stock coming onto the market in Melbourne is a concern,” she says.

For investment, she favours ”the groovy, funky areas with a younger demographic”, such as South Yarra, Richmond and Middle Park.

”The other opportunity is the old house on the corner block in suburbs like Cheltenham where there is the potential for multi-residences down the track,” she says. ”Investors can rent them out for five years or so with a view to either selling the site or developing themselves. People are saying they’ll build one residence for themselves and sell the second for profit.”

Braddick says buyers should be aware that states are likely to perform differently. ”NSW has the advantage of being the most undersupplied market but it’s tricky to look at particular sectors.” He says if the construction and resources sectors continue to boom, this could support the upper end of the market, while soft conditions in retail and manufacturing could dampen the middle and lower parts of the market.

”But ultimately it will come back to the ‘atmospherics’ – the number of properties on the market, current sentiment and so on,” he says. ”Over the short term there could be significant increases or falls but on average the market is unlikely to achieve much.”

A GREATER FOCUS ON YIELD

To a large extent, buying a home is a lifestyle decision and you can afford to trade off slower capital growth against the desire for a place to call your own.

But if you’re considering putting your hard-earned money to work in investment property, you’ll need to be hard-headed.

Braddick says investors in the 2000s ”got away with non-focused property buying because most prices were going up.” But with capital gains likely to play less of a role, investors will need to focus on yield for more of their return.

”You need to look at the yields now and what they will be in the future,” Bennett says. ”The initial yields in the inner city may be lower but newer stock can balance that with depreciation allowances and if you get income growth, the yield will bounce back.”

Lawless says units have outperformed detached dwellings in terms of value growth in recent years.

”This is probably due to both improving demand related to price sensitivity [units are generally more affordable than houses] as well as the fact that units generally provide higher rental yields than houses. With more focus on urban renewal and higher densities around transport hubs and employment nodes, we would expect that well-located units will continue to be a popular choice for investors,” he says.

”Another tactic that is likely to remain popular among investors is buying within close proximity to the capital cities. The 10-kilometre to 15-kilometre ring should continue to provide reasonable housing demand with tight supply constraints. Public and private transport options are becoming even more important and these factors will be one of the primary drivers of long-term capital gain.”

Oliver says investors might also want to consider looking outside the residential box.

”You can argue that if you’re going to buy investment property, you’d be better off looking at commercial property where the yields are higher and there is less evidence of overvaluation,” he says. ”Listed property trusts have gone back to their roots after going through a more speculative period and are offering yields of 5.5 per cent to 6 per cent, unlisted property trusts and syndicates are an option [though you have to be careful], or you can invest directly in something like a shop, warehouse or strata office.”

The new rules to property success

When it comes to gearing, less is more. ”It’s not what you own but what you owe,” Shane Oliver, of AMP Capital Investors, says.

Think affordability. The more expensive your property, the smaller the list of potential buyers or renters.

Buy well. What’s the point of being in a weak market if you don’t get to dictate terms? ”You make money in property when you buy, not when you sell,” Ana Bennett, of Lachlan Partners, says.

Don’t count on making a quick buck. ”If you think you’re getting a bargain, you’re usually not,” Bennett says. She says property should be regarded as a long-term investment. ”Particularly for investors, you have to ask whether you can really afford it,” she says. ”There’s no point struggling and realising you have to sell in two to three years.”

If you’re investing, think income. In the absence of strong capital growth, investment returns will increasingly depend on a decent, and growing, rental yield.

Do your homework. While average returns might not look promising, the property market is highly segmented and demand for the right properties will remain strong. Look for properties that are in undersupply, not a dime a dozen. ”I would be wary of locations that have recently experienced a large surge in home values or where rental yields are lower than average,” RP Data’s Tim Lawless says. ”Areas where housing can easily become oversupplied should also be treated with some caution.”

Understand that property prices can be volatile – especially in the short term. Just because your house price isn’t quoted on the news each night doesn’t mean it can’t go up and down. ”If you put a large proportion of your money into a particular investment, it is a risky position, particularly if you’re also leveraged,” Michael Sherris, from the Australian School of Business, says. ”There may be half the volatility that you get with shares but people think there’s no volatility at all.”

Look for areas with strong population growth, strong demand and good infrastructure that is improving.

Think outside the box. Will it be possible to add value to the property in the future? If residential property doesn’t stack up, what about commercial?

Don’t expect history to repeat itself.

Story by Annette Sampson, source: www.domain.com.au

From the Boardroom – 2012 Summer Edition

To read the full story, please click on the link!

The Reserve Bank of Australia board has kept interest rates on hold, leaving the official cash rate at 4.25 percent.

The shock move comes as many parts of the economy continue to struggle with the side effects of the mining boom.

Data published yesterday showed retail trade contracted 0.1 percent in December, traditionally the sector’s strongest month.

In anticipation of a rate cut, the Prime Minister and Treasurer earlier urged banks to pass on the cut in full.

But the board’s decision means mortgage holders and borrowers will have to wait another month in hope of further interest rate relief.

The CEO of mortgage comparison company RateCity, Damian Smith, told ninemsn the surprise announcement does not spell impending doom for mortgagees.

"Borrowers shouldn’t be disheartened that the Reserve Bank kept the cash rate at 4.25 percent today because the sluggish home loans market means the ball is in your court," Mr Smith said.

"We’re seeing lenders offering discounts of up to one percent off their standard variable rates for basic home loans and many lenders — including the big four banks — have said they are willing to negotiate to retain their share of the home loan market."

The Australian dollar rose sharply immediately after the news, up more than 0.7 of a US cent.

At 1432 (AEDT), the currency was at 107.79 US cents, compared with 107.06 US cents just before the RBA announced its decision at 1430 (AEST) today.

Source: www.ninemsn.com.au

The Board of the Reserve Bank meets on February 7 next week. In July last year Westpac forecast that the next easing cycle would

total 100bps beginning near year’s end. Subsequently, the Board decided to ease the overnight cash rate by 25bps in both November and December. Based on current information, we continue to expect a further 50bps of easings in this cycle with the next move at the February 7 meeting and another to follow in May.

The case supporting a rate cut next week is strong. Market pricing is certainly arguing for a move: current pricing puts an 85% probability on a 25bp cut.

Clearly, a key factor used by the Board to justify the decision to cut rates in December hinged around Europe and funding conditions.

The RBA Governor on December 6 noted, "Financial markets have experienced considerable turbulence and financing conditions have become much more difficult".

It is reasonable to argue that financial market conditions have improved since the December meeting. In the Board minutes it was noted, "Australian banks had found long–term debt markets dislocated" and "wholesale debt markets appeared to be closed to many financial institutions".

Bill Evans, Chief Economist

Westpac Bank

A Newspoll survey conducted late last year showed many Australians plan to keep rising energy prices in check by closing curtains, washing clothes in cold water and taking shorter showers – but how much does any of that actually affect the average power bill? Apparently, quite a bit.

By matching the five most popular energy-saving strategies with some ballpark dollar savings based on the National Australian-Built Environment Rating System (NABERS), it was found the average three-person household can save hundreds of dollars a year.

Put simply – simple changes can lead to big savings on your power bill.

Of course, all of this varies depending on which state you live in, how you use power, and exactly how you implement each strategy in your home. But whichever way you look at it, there are plenty of opportunities to reduce your utility bill with just a few behavioural changes.

1. Closing curtains/blinds: $55 p.a.

Windows are a home’s biggest sources of heat in summer (and cold in winter) so the 89 per cent of Newspoll respondents who plan to close blinds and curtains can expect to save around $55 this year according to the NSW Government’s Save Power website.

Effective window insulation includes:

- Shading windows and skylights during the day as much as possible

- Lined curtains and close-fitting Holland and/or Roman blinds instead of vertical blinds, conventional or timber Venetians

- External blinds or awnings on north, east and west windows

- Keeping doors and windows closed during the day as much as possible

- When the temperature drops at night, opening doors and windows up.

With window glazing, you can save even more. If the cost of double-glazing looks a bit steep, consider secondary glazing (fitting a membrane to the window) instead.

Of course, it helps if you’ve got effective house insulation. Energy retailer AGL estimates efficient insulation can bring the temperature down by up to 7 degrees in summer, and increase it by 10 degrees in winter, slicing more than $100 off your power bill every year.

2. Washing clothes in cold water, drying on line/rack: $380 p.a.

AGL says that cold water has been ‘scientifically proven’ to be just as effective as hot water when it comes to washing clothes, and Save Power calculates the cost saving at $30 or more per year.

You can save another $30 per year if your machine is a front-loader with a 5-star energy rating.

But the real savings kick in when you cut back on clothes dryers. These energy thieves can use more power over the course of a year than a reasonably energy-efficient fridge, and cutting them out can save a whopping $350. Dry outside or on a rack instead – apart from being budget-friendly, it’s a whole lot kinder to your clothes too.

If you do need to use the dryer, AGL recommends setting it to warm rather than hot – it takes a little longer but uses less energy.

Bear in mind the cold water rule doesn’t apply to dishwashers – hot water is more efficient when it comes to dishes.

3. Being quick in and out of the fridge: $25 p.a.

Running your fridge efficiently can save about $25 per year. That means making sure it’s set to the right temperature (fridge at 4°C, freezer at -18°C), has decent sealing and is kept closed as much as possible.

Fridges use more power when they’re empty than when they’re full so if you’ve got a second fridge, turn it off and leave the door ajar when you don’t need it. Giving it a rest for six months of the year could take another $130 off your bill.

And if it’s time to upgrade, you’ll find an energy-efficient model pays itself off before long by reducing power bills by about $145 per year.

4. Taking shorter showers: $105 p.a.

Shaving three minutes off shower times can save a three-person household about $105 a year – or much more if your house is still running an electric water heater.

“Electric water heaters account for around 25 per cent of a household’s energy use,” says Stephen Cranch from Solahart, an Australian solar water heater manufacturer.

“Switching to a solar water heater will reduce water heating energy consumption by 50-90 per cent,” he says – he says, and according to Save Power, reduce your annual power bill by about $150.

Plus, the Federal Government is planning to phase out electric water heaters from 2012, so rebates are also available for households needing to upgrade.

5. Switching appliances off at the power socket: $125 p.a.

It’s estimated that standby power contributes about 10 per cent of every power bill, so switching things off at the wall can save $125 or more a year.

And it’s not just computers and appliances. Even chargers use power when they’re not connected to our phones, iPads, razors and toothbrushes, and the digital clock on our microwaves can cost more to run than the cooking function itself.

But awareness goes a long way. All up, you can reduce your bills by close to $700 without sacrificing comfort or refitting your home.

Source: www.smh.com.au, www.yonderr.com.au

Apartments and multi-storey homes are about to get a little safer for children thanks to a rule change around windows in new buildings.

The Australian Building Codes Board has ruled that all windows in new homes and apartments that are more than two metres off the ground must be either fitted with window locks that stop the window being opened more than 125mm (12.5 cm), or must have reinforced screens to prevent children from falling from a height.

The changes will be included in the National Construction Code from May 2013.

The Australian Building Codes Board estimates that owners and builders will choose to fit 80 per cent of windows with locks, and the remaining 20 with reinforced screens. Its research priced window locks from $20 – $70 each, and strong screens from $130 a square metre, putting the average cost of a suitable screen at $130.

Ron De Vere, a project manager with the Australian Building Codes Board, says the decision was made after wide consultation with industry, and with fire authorities across the nation.

De Vere said an economic analysis that took into account the cost of installing locks and screens versus society’s cost of treating children who had fallen from windows showed that the broader cost-benefit of the changes was around zero.

However, "the board was swayed by the risk to children and the danger of children falling out of buildings", he says. "It’s a bit like the pool safety issue, the child drowning … the value of a child’s life is so crucial."

Danny Cass, a professor of paediatric surgery at the Children’s Hospital Westmead, has welcomed the changes saying the recognition that children could access windows and easily climb or fall out of them was a win for commonsense.

"Before, they thought a kid couldn’t climb that high but … they often pull things up to it, or beds are placed next to it," Cass says.

Just a like a pool safety fence though, children will only be protected when adults remember to lock the windows and check that the reinforced screens are in good order.

The board backed away from an initial proposal to mandate window guards for windows two stories or above in all domestic dwellings.

It also a decided against that a proposal to increase to one metre the minimum floor-to-sill height of openable windows in rooms that are four metres from the ground outside.

The minimum floor-to-sill height will effectively remain at 865mm as the current provisions require a barrier of 865mm be in place to any openable window that is more than four metres from the ground, and it is common practice to place the bottom of the window at that height, using the wall itself to create the barrier.

The floor-to-sill height requirement will remain even where a lockable or removable device or screen is in use – in case the device or screen is inadvertently unlocked or removed. However, the minimum height from ground level at which the window-to-sill or barrier rule comes into play will drop from four metres to two metres after evidence showed serious injury can happen when a child falls from just two metres.

The changes will come into effect from May 2013, a timeframe the board says will allow industry to prepare for the changes.

An average of one child a week is taken to hospital in Australia after falling from a window. According to figures from the Children’s Hospital Westmead, 80 per cent of children who have fallen from a window have significant injuries, and four out of five children who fall from windows are aged under five. For information on keeping your kids safe near windows, click here.

Cass says the next challenge is making windows in existing housing and apartment stock safer for children. Cass is part of a working party on child falls at the Children’s Hospital Westmead. The group will meet again this month to explore further recommendations for existing properties.

Story by Carolyn Boyd, source: www.domain.com.au

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.”

Brisbane vet Michael O’Donoghue has seen too many people have to give up, or put down, their pets because they could not find a rental property that welcomed animals.

"It’s very heart-breaking, people euthanising their beloved pet because they can’t find accommodation," he said.

The People and Pets veterinarian is pushing for more pet-friendly rental properties to be made available to encourage more families to adopt animals and stop the displacement of loved family members.

According to the RSPCA, 30 per cent of pets surrendered to the organisation are from owners who cannot find adequate accommodation.

Mr O’Donoghue’s effort to publicise the need for more pet-friendly rentals, and his ideas for homes to be built to be more welcoming to cats and dogs, have been praised by the celebrity vet Katrina Warren as part of a competition calling for ways to create a pet-friendly world.

His perspective is also shared by Tenants Union of Queensland coordinator Penny Carr, who said renters struggled to find properties that allowed pets and often had to settle for homes which were unsuitable in the short term while finding a new home.

"It’s really difficult and I think it is really unfair especially for kids who are denied having a pet as a child because of these unreasonable restrictions," she said.

The Residential Tenancies Authority states a tenant can only keep pets on a premises if their tenancy agreement states pets are allowed.

It does not allow landlords to make pet owners pay a larger bond.

Property Owners Association of Queensland president Bruce McBryde said, apart from body corporates and real estate agents warning against landlords allowing pets, owners were also wary of the cost of damage to their properties and the difficulties in recouping those costs.

He said it was difficult to get tenants to take responsibility for damage caused by pets to rental properties since the RTA allowed for no extra protection for landlords.

"Ideally if you really want to make landlords more pet friendly you need to change the regulations to allow them to take a bigger bond," Mr McBryde said.

"At least then the landlord would have more incentive."

Mr McBryde also suggested routine treatment for carpeted homes.

"Perhaps in the legislation it could be mandated that if you have carpet you would need to have a flea treatment before you leave the property, similar to how tenants have the carpets shampooed," he said.

Mr O’Donoghue was supportive of the idea of mandating flea treatments when a pet owner leaves a carpeted property.

But he did not believe dogs and cats were more destructive than children or teenagers.

"Generally a normal bond should cover any sort of damage a pet could possibly do, it is only going to be a scratch on the wall or replace a bit of carpet," he said.

"But I find in my own personal experience that young children are more destructive to houses than pets are."

Ms Carr agreed.

"Tenants already have an obligation to restore the property to the same condition as it was when they got it except for fair wear and tear," she said.

"If tenants don’t restore their property there can be a claim against their bond and sometimes there are orders over and above the bond for tenants to compensate."

Ms Carr said she would love to run a test case on whether pet owners had a right to house pets on their rental property.

"I think there is an argument in saying that not allowing pets is a breach of the right to ‘quiet enjoyment of the property’," she said.

"You have a contract which says this is your home and you can’t do anything illegal in that home, but other than that you have a right to peace and comfort and privacy in using that property."

RSPCA spokesman Michael Beatty said the organisation urged landlords to be a lot more sympathetic to people who want to have pets.

"If you look at it logically someone who is going to take good care of their animal is going to take good care of their property," he said.

Mr Beatty said the Companion Animal Council provided contracts for landlords and tenants to sign when entering an agreement to allow pets on to a property.

Story by Dan Nancarrow, www.domain.com.au

As we head into 2012 pondering where the housing market is headed – will it be down 10 per cent as some commentators are expecting, or will others be on the money with predictions of 5-7 per cent growth – there is some interesting news emerging about home loans.

Out today are figures showing mortgage holders are increasingly being lured by fixed rates.

Despite predictions about one, two or even three rate cuts coming over the next six months, a growing number of homeowners are locking in their rates now. Data from the Australian Bureau of Statistics shows fixed loans grew from 10.6 per cent of new housing loans before the most recent rate cut in November to 11.1 per cent.

And mortgage broker AFG reveals that 19.2 per cent of loans arranged through its business in December were issued at fixed rates, a big jump from 8.2 per cent six months earlier.

An odd move you may think given all the predictions are for official rates to fall further this year. But CommSec economist Savanth Sebastian argues people are simply getting in at what they can afford.

“It’s more about ensuring you can purchase a place within your budget and within your limits," he says. "While the risks are to the downside [for rates to fall], I think the fixed rate market has already priced in a couple more rate cuts,” he says.

In addition “even though the Reserve Bank will cut rates, the banks need to pass it on. So the fixed market is looking very attractive, not only do you need a couple more rate cuts [for variable rates to match fixed] but you need it all to be passed on as well to justify where the fixed market is.”

Many homebuyers may also be wary that should there be a swift change in the economy, rates can easily shoot back up. 

“We saw straight after the GFC how rates rose, it certainly would have caught some home buyers that were on the edge in terms of repayments, so at least this way they can sleep easy,” says Sebastian.

Further news on the home loan front could point to a slightly more positive year for property than last, where we saw prices fall across the board. Australian Bureau of Statistics figures have revealed that the number of new owner-occupier housing loans rose by 1.4 per cent in November while the value of loans rose by 2.2 per cent.

However, home loans aren’t being drawn down – rather potential buyers are simply getting their finance sorted and sitting back and waiting until the right time to buy.

So while for the past eight months there’s been consecutive jumps in the number of home loans being approved, in November the value of loans that had actually been drawn down was two per cent lower than a year ago, and commitments not advanced were almost 11 per cent higher than the previous year.

With all the concern about the state of the US and European economies, it’s little wonder buyers have been taking a cautious approach.

So just what will entice all these cashed-up potential home buyers to jump? Could a February rate cut be enough?

CommSec’s Sebastian thinks so. “Even the thought of rate cuts should prompt activity levels to increase over the next few months,” he says.

Story source: www.domain.com.au