Have you noticed the word eco has started to crop up in ads for houses? We’ve seen it on consumer products – just walk down the cleaning aisle and check out the hundreds of claims for biodegradable, environmentally friendly, green and renewable. And I couldn’t help but notice this week, that the word eco is cropping up more and more. It’s not a flood but it definitely looks like the beginning of a trickle. And that’s how streams usually start.

Of course, not all green claims apply to houses. For example, you wouldn’t expect to see a home being advertised as biodegradable. Although some tenants might be able to claim they are renting something that fits the bill because it is crumbling before their eyes.

I contacted the consumer affairs departments in a couple of states, as well as the Australian Competition and Consumer Commission to see if they had received any complaints about unsupported green claims on houses for sale or rent – but it seems if it’s happening, it’s not yet in big enough numbers to get noticed by those kinds of bodies.

Christopher Zinn, of consumer advocacy group Choice, says products on supermarket shelves are awash with green claims, so he wouldn’t be surprised to see it emerging in the housing market too.

"I can say my house is green or eco or anything," Zinn says. "Anyone can make [that claim] because there really is no measure or standard."

However, there is a ceiling to green claims on houses – informed buyers. It’s not quite like buying a spray cleaner, where you dash wildly through the supermarket, potentially with a trolley crammed with a couple of toddlers whose little windmill arms try to grab at all manner of colourful products as you whiz past. There’s little time or head space to give much thought to the price of the thing you end up buying, let alone the veracity of its environmental claims. But with a residential property you take a lot more time to decide – usually – have more time to investigate claims the home is somehow green or kind on the environment. And then there are building inspections that can give you some professional insight too.

There are always going to be agents who try to put a green spin on things though. Like the guy who told me the other day without a quiver in his voice or a shift in tone that it was great the unit he was selling faced west because it got lots of afternoon sun. Um yes, the type that hits you in the eyes, blinds you, and turns your place into an oven.

It begs the question. What makes a green house? Is it green if it meets the newish five star energy minimum that many new houses and major renovations must be built to? Does whacking on a couple of solar panels, or a 2000-litre water tank make it green? How about a couple of draught stoppers? Or building a whopping big house that is filled with downlights and nary a ceiling fan in sight. It might face north (a good thing) but it doesn’t pay attention to too many other details that could make it tread more lightly on the environment. Should there be some minimum standard that properties have to meet to use the label "eco"?

As flagged a few weeks ago, the Council of Australian Governments is proposing a national energy ratings scheme from next year, which could look something like the one already in place in the ACT. If the scheme is introduced, that could help shine some more light on whether houses can really be called eco, or just plain old energy and water guzzlers.

As Christopher Zinn says: "Wherever you see the word eco or green or natural you need to get out a very accurate ruler. It could mean anything and nothing."

Story by Carolyn Boyd, a property journalist and keen follower of Australia’s housing market.

Source: www.domain.com.au

THERE are plenty of pitfalls the first-time real estate investor needs to avoid, writes Anthony Keane. Here’s a list of the most common errors and how to avoid them.

Getting your foot in the door of property investment can be a scary proposition.

It’s not every day you sign up for hundreds of thousands of dollars of debt for something you are not living in.

History has shown that, for long-term investors, the rewards are usually worth the risks, but there are plenty of traps the first-timers need to avoid.

Tax, interest rates, tenants, property agents, renovations and insurance are among the key areas where mistakes can cost investors big money, or at least deny them some of the profits they seek.

Today, Your Money examines some of the traps for first-time property investors.

Seminars that bite

University lecturer, author and investor Peter Koulizos warns about so-called "property education" seminars that are really just sales seminars designed to flog overpriced property to pumped-up investors.

"But I would encourage people to try to see lots of seminars just leave your chequebook at home," he says.

"You get different perspectives and you can get good information, but just go with your eyes wide open."

Where’s the research?

"Some people spend more time researching the plasma TV they are going to buy, rather than the property they are going to buy," says Koulizos, who wrote The Property Professor’s Top Australian Suburbs.

These days we are spoilt for choice, with a wealth of information about property prices, trends, hot and cold suburbs, tips, traps and warnings in the print media and online.
Buying for tax purposes

Koulizos says many people look at property investing as a way to get a bigger tax refund.

"But you are only getting a refund because you made a loss," he says.

This practice is known as negative gearing, but seasoned investors know that a positively-geared investment where the property pays you a profit is the ultimate aim.

First-time investors are usually negatively geared in their approach, so they may as well get their tax refund back sooner.

Louise Carr, a property strategist with investment group Ironfish, says completing an income tax variation form can help smooth out your cashflow rather than get a lump sum refund.

"This way you can organise to get your tax back on a weekly or fortnightly basis with your pay," she says.

Depreciation debacles

One of the best tax benefits from property investment is being able to claim a deduction for depreciation of items within the property and the building cost of the property.

You don’t physically pay these costs, so effectively it’s free money coming back through your tax return.

However, many investors don’t understand depreciation, Carr says.

"Deductions for new homes can be up to $15,000 a year.

"We often find that some accountants don’t make people aware of it. We recommend going to an accountant who owns property themselves, so they know the advantages and are aware of tax legislation."

A depreciation schedule will list all your depreciation deductions. They typically cost $500-$600 and are available through a quantity surveyor, are tax-deductible themselves, and are available through a quantity surveyor.

Bad advice

Everyone has an opinion about buying property and these days opinions are deeply divided about the short-term outlook for real estate investment.

There are also different opinions about what to buy, where to buy and tax strategies, and investors should not rely on the advice of friends and family members, who may have completely different financial situations.

Carr says getting good professional advice is crucial to owning the right investment.

"People who get advice from friends and relatives find that their investments are generally not set up properly," she says.

Paying too much

Ian Lloyd, an advisory board member of property and finance group Investa Solutions, says some investors are paying more than they should.

"There are developers out there who, I believe, are offering properties that are overpriced," he says.

Lloyd says some government schemes and incentives are prompting people to create properties and developments that are "a little manufactured" and slug hefty management fees, Lloyd says.

Property management is another area where people can pay too much.

"Don’t pay letting fees or re-letting fees to property managers," Lloyd says.

"For every week of rent you give up, for example for a letting fee, that equals 2 per cent of your rent. So if you pay an 8 per cent management fee but there’s two weeks’ rent for letting, it’s 12 per cent, then if it’s re-let and there’s another fee, you are in effect paying 14 per cent.

"If you can negotiate a flat fee something like 10 per cent you don’t lose rent upfront through letting fees."

No safety net

Investors can lose everything if something goes wrong and they don’t have the financial firepower to cover the costs and their loan repayments.

"Have a strategy where you have set up a reserve," Lloyd says.

"A good finance broker or adviser can help you set up a buffer that would mean if you lost your job you could still keep the property."

Carr says it doesn’t have to be cash an available line of credit could be enough protection.

"Have a kitty of $20,000. Then if you run into trouble or tenants don’t pay on time, you can still sleep at night."

Interest rate panic

Fixed-rate loans have lost popularity in recent years, but fresh talk about rising rates can prompt many beginners to fix.

Koulizos says some people can get trapped in a long-term fixed rate loan say five years because they panic when rates are relatively high.

"Then in about three, six or 12 months the rates start to come down again but you have locked yourself in for years paying a higher rate," he says.

"Generally people fix at the wrong time, but fixing rates can be good especially if you are risk-averse."

Easily scared off

Some investors decide to sell up after just one bad tenant, Koulizos says.

"You can easily get rid of a tenant who’s doing the wrong thing, but as soon as you sell, your asset will not be going up in value," he says.

The vast majority of tenants are not bad people, and if you treat them well most of them will respond in kind.

Renovating? Use your head

Koulizos says many people renovate an investment property with their heart, not their head.

"They renovate a property like they want to live in it, and can over-capitalise," he says.

Save the crazy colour schemes and top-of-the-range fittings for your own home. Rental properties with neutral colours are likely to attract a broader range of tenants.

Ignoring insurance

Landlord insurance is vital for property investors. It’s tax-deductible and not as expensive as you might think.

For example, Carr says a policy that covers things such as malicious damage, accidental damage, rental default and legal liability would cost you $255 a year through major landlord insurer Terri Scheer.

"Some investors think ‘I have a property manager – I don’t need landlord insurance’, but they do," she says.

Lack of patience

"Property is get rich slow," Carr says. "Some people don’t believe that property prices will double again, but historically they have doubled every seven to 10 years."

"The more times you go through the cycles, the more money you are going to make."

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

The Perth real estate market has experienced a winter of discontent, with property prices dropping 4.8 per cent in the three months to August, according to RP Data-Rismark.

The real estate consultancy said the Perth market was the worst performing of all capital cities last winter, with the homes around the nation averaging a 1.2 per cent drop.

Perth’s median price – once the highest in the nation at $500,000 – is now $460,000 following a 3.3 per cent reduction in the value of dwellings in the past year.

This is barely above the $457,000 Australian average, following a 3.9 per cent increase across the nation in the year to date.

RP Data’s research director Tim Lawless said no further capital gains were expected this year as the market battled increasing interest rates.

"Just 12 months ago mortgage rates were 160 basis points lower and the market was still benefiting from the first home buyers boost," he said.

"Since the RBA has normalised rates with six hikes, combined with additional bank top-ups, capital growth has halted."

Christopher Joye, the managing director of Rismark International, predicted further interest rate increases, with the headline rate expected to peak at seven to eight per cent before any discounts.

Mr Lawless said rental yields across capital cities are showing signs of improvement, and creating big investment opportunities.

The rental yield in Perth was 3.9 per cent in August, up from 3.8 per cent a month earlier. Units rents were steady in both months at 4.3 per cent.

"This has resulted in an overall improvement in rental yields. The outlook is likely to be positive for investors but not so great for renters as vacancy rates remain exceptionally tight and rents are now rising," Mr Lawless said.

Kim MacDonald, The West Australian

Applications have opened for Ten’s new 2011 reality competition show, The Renovators, to be produced by Shine Australia, and to air in the second half of 2011.

Have you got the skills to transform the country’s worst house into a real estate goldmine?

The search for Australia’s best renovator has begun.

The Renovators is an ambitious new television project from the creators of Masterchef Australia. We are holding a nation-wide hunt to find the one person who can prove they are the most talented renovator of all.

Applicants must be ready to roll up your sleeves and dedicate up to six months of your life towards proving you are the best in the nation. We are looking for men and women, aged 18 and above, who have home renovation experience and are ready for a life-changing experience.

The chosen individuals will take on rundown homes, with the aim being to make as much profit as you can in a short space of time through clever renovation. As well as the home makeover, contestants must fight for survival in the competition, through an epic series of additional building and design challenges.

Just one renovator will emerge victorious in this historic winner-takes-all competition.

Applicants must be available for filming between April and October 2011, be passionate about renovation and be able to show photo evidence of renovations carried out.

You can apply here.

Sydney’s yo-yoing auction clearance rate slipped to 57 per cent amid the bumper 588 weekend listings. There had been a 61 per cent success rate the previous weekend.

Clearance rates have averaged 67 per cent so far this year, the weakest weekend result being 51 per cent in early July.

The easing success rates, combined with the high number of properties on the market, has prompted suggestions that better buying conditions were on the way.

”It’s moving towards a buyers’ market, but I wouldn’t say it was there quite yet,” said John Edwards, chief executive of the real estate monitor Residex. ”Clearance rates consistently below 60 per cent is a buyer’s market.”

It was the second busiest Saturday this year – falling short of the super Saturday in March when 70 per cent of the 680 vendors sold their houses and units at auction.

Given school holidays and the grand final, there are just 170 auctions scheduled next weekend.

The weekend’s highest sale was a three-level, cliff-top Vaucluse house which sold pre-auction for $4.3 million. The six-bedroom house last traded at $4.1 million in 2007, reflecting a subdued 1.3 per cent annual growth.

Another Vaucluse house, a modernist house designed by Tobias Partners, was passed in at $6.7 million. It was initially listed early last year with $8.5 million-plus hopes. The three-bedroom, four-bathroom house was built in 2007 after the 696 square metre block cost $2.75 million in 2005.

In 2007 a neighbouring residence sold for $8.5 million, and although that house was new at the time, keen observers of Vaucluse real estate thought the latest offering was superior in design and finish.

Figures from Residex show Sydney’s price growth fell last month by 1.45 per cent to a $658,500 median house price.

Sydney unit prices also fell 1.16 per cent in the month to a $468,000 median. However, country NSW’s median house price rose 1.88 per cent to $342,500, according to the Residex data.

The Labor government’s agreement with independent MPs could help with property values in regional Australia, Mr Edwards said.

The government’s pledge to invest in building affordable homes in regional cities and to spend on infrastructure could be one of the most significant policy shifts of modern times, he said.

”Just the development of 15,000 new homes in regional Australia suggests a capital outlay in the order of $3.7 billion. I have for a long time suggested that the only way to solve the unaffordability crisis in our capital cities is to create growth in our regional areas and in turn encourage a good percentage of our city dwellers to relocate to a better lifestyle. This process will by its very nature reduce the capital growth rate in our most unaffordable capital cities but it will in the longer term be beneficial for society and ensure there is no housing bust that is so often suggested by many.

”It will cause a better balance between capital growth and rental returns in the future.

”This is because cities will have tighter rental markets with higher rental costs due to lower investor activity because of dwelling cost and expected lower capital growth rates.”

Story by Jonathan Chancellor Sydney Morning Herald

Larrikin carpenter Scott Cam, of Channel Nine’s Domestic Blitz, gives us his top ten tips for home reno projects. Scott tells us about essential tools for the DIYer’s toolbox (see our DIY section), the move towards building with sustainable wood products and gives us an insight about builders’ beer etiquette.

What are essential tools for the home handyman?

Scott: “The main thing to remember – when you are a home handyman or woman – is to not go too big too early and not have power tools that could cut your fingers off. So, I think hand tools are the most essential thing.”

Toolbox essentials

• Screwdriver set
• Pliers
• Multigrips
• Tin snips
• Wire cutters
• Hand saw
• Square pencil
• Level and shifter

What is the best power tool someone could buy? Or should weekend renovators just hire large tools?

Scott: “The most important power tool you can have is a cordless drill, one with a hammer component so you can drill into masonry or concrete or brick.”

“I don’t like the concept of people that aren’t really up there on power tools to go out and hire a nine inch power saw because it’s so easy to injure yourself with those. So if you hire power tools, make sure they’re small ones.”

What’s your favourite power tool?

Scott: “I’ve got about 300 power tools and 10 circular saws. I really like my chainsaw – it’s petrol driven – and my big circular saw. You have to be very experienced to use a big chainsaw and it can be dangerous for the home handyman.”

What is the most important building tip to remember when revamping your home?

Scott: “Be prepared to make sure you budget. Be careful of variations. If you’ve got a plan, stick to that, and don’t change things along the way because that’s when you get into strife and you’ll run out of money.”

“And be prepared, when you’re in old homes and you’re knocking a few things down, that you’ll have to rewire the whole place, as there’s no point putting wiring in when you’re half way through – so there’s $10,000.”

* Scott advises renovators to check the plumbing and electrical on homes more than 40 years’ old.

Where is the line between home renovation and home demolition?

Scott: “It’s based on your foundations. If you’ve got bad foundations from the start, which a lot of houses had in the old days, (when) they used to just lay the foundations straight onto the ground with no footings. Sometimes a builder or an engineer may need to get involved and say, ‘look there’s no point in renovating, here, it’s best to knock this down’.”

Easy building project for the weekend renovator?

Scott: “Without a doubt it’s to put a deck on the back of the house with a pergola over the top – creating a new room – an extension. It’s an easy extension to do and make it covered, so it’s all-weather.”

“You put a little clear roof on the pergola you knock-up; and a deck underneath that, put a table and chair out there, some blinds coming down to protect against the wind and the rain, and you’ve got yourself a full extension of your house. And even when it’s pouring with rain you can sit out there. It’s without a doubt, an easy way to add value to your home and get a better standard of living.”

Are people moving towards using more sustainable products? Are the products more expensive? Any special precautions people should take when using these products? For example, embedded nails.

Scott: “We use a lot of plantation timber these days in the building industry and I also use a lot of recycled hardwood, which is quite expensive, but it’s a great feature timber. It’s very hard for the home handyman to nail into second-hand hardwood – you’ve got to be on your game!”

“As far as treated pine is concerned, it’s the way to go for your outdoor stuff because it lasts a lot longer and the price is cheap. I think that’s the way we are going in this industry, if we don’t do that, we’ll run out of timber, so we’ve got to start using the stuff they can grow in the pine plantation.”

But if you’re after a bargain, visit a demolition yard, or scout around a house block where someone is demolishing a house, to get second-hand timber. This timber could have embedded nails in it – so take care!

The best advice for our weekend carpenters?

Scott: “Know your limitations, and once you start something, make sure you finish it! Don’t take two years to build it – start it and finish it!”

“And the other thing is, make sure you get beers nice and cold for the 5 o’clock knock-off. There’s nothing finer than sitting at the end of the day and having a cold beer and admiring what you’ve accomplished for that day. It just doesn’t get any better. It’s magnificent!”

Do you think the internet is helping people with renovation/building information? Is it making the building industry lose (or gain) business.

Scott: “I think it’s a great thing that people are doing stuff at home and people are getting stuck into it. I’m not real good on the internet, I need to get in there a bit more myself, but a lot of my friends go onto the internet and find out information.”

“If people do get out of their depths and go a bit hard, then it’s great work for us to come along and fix those things.”

* Article written by Angela Erini

Source: www.realestate.com.au

Australia’s economy is the envy of the developed world.

Not only did we escape the global downturn with hardly a scratch, but we’re in a very strong position to withstand any more external economic shocks.

We have interest rates back up to average levels and government debt at much lower levels than any of our overseas counterparts.

This means that if the US fell into recession again, or even if China’s economy took a turn for the worse, Australia still has the levers to stimulate the local economy.

When it comes to housing, the strength of the local market has overseas investors and commentators all worked up, even given the moderation in price growth experienced over the last quarter.

Foreign financial markets are convinced that Australian housing is the next big bubble that is about to burst.

Many major retail and investment banks recently released their perspectives on the situation and they all came to the same conclusion – there is no speculative “bubble” in the local property market.

Even if you subscribe to the view that Australian housing is relatively expensive, the sequence of events that would need to occur to spark heavy prices falls is unlikely.

During the global financial crisis Australian property suffered only a 4 to 5 per cent fall in price.

In the US, the 30 per cent fall in property prices was driven by subprimehome lending, and the typical oversupply that accompanies high levels of speculation.

In Britain a similar size fall in prices was driven by a domestic bank credit crunch that was a result of a global credit crisis. Both led to a combination of a collapse in demand and distressed selling.

In Australia we have no subprime lending sector to talk about and a significant undersupply of new housing.We have interest rates at levels higher compared with other international economies, so the Reserve Bank could respond to any overseas credit rationing by dropping interest rates again.

Even in the extreme event of another economic storm which  would force banks to withhold new lending, it is unlikely to lead to a wave of distressed selling.

Homeowners with a mortgage are in a strong position. A report from one of the big four banks, considered to be Australia’s largest home loan provider,  stated that its average home loan to home-value ratio is only 43 per cent and that 70 per cent of customers are paying their mortgage in advance, and are an average of nine payments ahead.

Australia has an undersupply of housing because of the natural increase in population and immigration.We have an economy where unemployment is approaching historic lows and incomes are set to rise strongly.

If we also take into account strong gross domestic product, retail sales and consumer sentiment indicators, and low mortgage arrears and delinquency rates, doomsayers will continue to be off the mark when it comes to predictions of house price collapses in Australia.

Anthony Ishac is the general manager of the Fairfax Media-owned Australian Property Monitors.

Every year at exactly this time ‘Spring Fever’ hits the real estate market as owners all over Australia shout “enough!” and put their homes up for sale. Your Investment Property looks at how you can make your place stand out from the crowd in this frantic selling season. The ‘stay at home’ nature of a long, cold winter can lead to some life changing thoughts and deeds. There’s nothing like spending a great deal of time in your home to make you feel dissatisfied with it.

The vast majority of niggling irritations can be eliminated by the simple application of a new coat of paint to the living room walls, or a radical change of curtains. Some homeowners, however, emerge from winter with plans for a more permanent cure for their dissatisfactions. In real estate parlance, among those in the know, this is referred to as ‘we gotta sell this place and get something bigger/ smaller/closer/cheaper/in better condition … (insert your own personal gripe here, as appropriate.)’

Spring has always been the traditional time for properties to appear on the market in a rush. Recent mini-boom conditions in parts of our bigger cities have, however, led to a pretty healthy winter selling market as well.

But for those owners who are particularly garden conscious, or whose homes only look their best when the natural light starts reappearing through the windows, spring is the peak time to show their homes to their best advantage. In the 16 selling weeks between 1 September and 24 December, the race is on to sell and re-buy as fast as ink can dry.

Hands up those who can spot the obvious problem with the above scenario. Gold stars to those who said ‘oversupply’! If masses of houses are launched onto the market in one short period of time, how will yours be noticed? Will your aspirations for a wonderful new dwelling be skittled in the rush? How can your home stand out, be noticed, be loved and, above all, be bought?

It’s a jungle out there, and you need to start wielding your machete, today.

The view from the street

The sign is about to go up. People are going to be openly invited to notice your place. Human nature dictates they will also be judging it on some pretty tough criteria. Let’s look at some of them.

How’s your front gate looking? Need a coat of paint, a replacement of a paling, new hinges? Will it creak when it’s opened unless it’s oiled?

Would weeding help in the front patch of garden or paving? Are your edges neat? If winter winds have killed off your plants, get them out and put in some ‘potted colour’, such as petunias, which are inexpensive and look welcoming. Don’t forget to take their identification tags off! You want to make them look older than yesterday.

Take garbage bins out as late as you can and take them in as soon as they’re emptied, if possible. When they’re out, make sure they’re well closed so that no marauding cat or dog can get into them.

A flowering pot by the door is an attractive touch. If your finances won’t run to anything grand, borrow something grand from a friend or concentrate on filling a pot with an attractively scented shrub.

Your front windows should gleam, and don’t ignore the front door. Washing the front door may look odd to the neighbours but a good scrub will quickly remove street grime. Polish the door knob while you’re at it. Security doors have a habit of squeaking so get the oil can to it. If your doormat’s ratty, buy another one.

A side driveway should be free of clutter, such as skateboards or bikes, and any garage door should be shut. If there is evidence of mould on a pathway or driveway, get in the experts to wield one of those high pressure water jets or ask your hardware store for a solution you can paint on and sweep off.

View from the back

Around the back of the house, repeat the tidy-up plan, mow the grass and put outdoor furniture into configurations that suggest you use and like the backyard.

If you have a pool, you know about grief. If it has emerged from winter looking like something only a frog could love, start an improvement program right away. You don’t want the pool smelling of chemicals on your first open for inspection, so tackle the job slowly and systematically. Some sellers are tempted to give the house a lick of paint all over. This can be a very expensive idea, and half the potential buyers will hate the colour. The other half will be wondering what damp, cracks or other atrocity the paint is hiding. Unless it’s really bad, hose accessible walls down and leave the paint job to the next owner.

Sheds, storerooms, lean-to laundries, any room at the back of the house must be very neat. Gardening equipment should look organised; pool equipment tucked away. Rakes, brooms and other long-handled items can be clipped into storage units nailed to a garage or shed wall.

The inside story

Look at each room as if you’re seeing it for the first time. Now we need brutal honesty.

• Is it as clean as it could be?

• Is it cluttered? (90% of the people reading this would say ‘yes’ to that one)

• Do the carpets need cleaning?

• Boards need polishing?

• Curtains need dry-cleaning?

Natural light is a vital selling point for Australian homes, so concentrating on this aspect of every room is your first priority.

• Clean the windows

• Pull back curtains

• Pull up blinds

• Open the slats of the venetians

• Are your hallways or staircases Black Holes of Calcutta? You will be amazed at what a skylight can do, and for a very reasonable price of around $500– $1,000 per skylight

• If a room’s light will be enhanced by a coat of paint, go for a few shades lighter. This has the added benefit of making the room look bigger

A common ruse used by many sellers, which also relates back to light, is timing the open inspections for the hour when the most light appears in the most rooms. This may take a few days to figure out, but it’s worth the trouble. A cold, damp or stuffy house is a turnoff. Get the heaters into action or open the windows, as appropriate, before your inspection times to get the right ambient temperature and smell into your house.

Speaking of smell, at some inspections you go to, there will be the distinctive smell of fresh coffee brewing or of a cake baking. And Vivaldi’s Four Seasons playing in the background seems almost compulsory at some of the more up-market inspections. Fresh flowers will help. Freesias have a wonderful scent that will fill a room – but don’t overdo it. Back to clutter. Why do you think God invented garage sales? This is your big chance. The acid test for differentiating between ‘clutter’ and ‘precious’ is ‘do I want to spend hours of my life wrapping and boxing this stuff, unwrapping it at the other end and finding somewhere to put it?’ If the answer is ‘no’, it’s clutter. Sell it. Give it away. Remove it from your life. If you have been ruthless and your house is still museum-like, start wrapping and boxing some items and store these boxes with family or friends.

Coverings and cockroaches

Threadbare or worn carpets can be covered by borrowed/bought rugs. If carpet cleaning looks like a must, give yourself a good week after the cleaning appointment before your first ‘open’.

Give yourself at least two weeks after the pest sprayers have been in to remove dead bodies, or you’ll find would-be buyers finding bugs on their backs in every cupboard they open.

Floorboards, lino, tiles and cork floors can all be made to look like new. Ring the manufacturer or umbrella organisation (eg, a timber industry body) for care instructions.

Now, turn your thoughts to dirt, often a close relation of smells. Small children’s fingermarks on the walls, dog or cat fur, stains on the sofas, grey tile grouting, a fat-trap griller – all these are terrible turnoffs to would-be buyers, even if their homes look just as bad, if not worse!

Dirt and smell

Here are some quick solutions for getting rid of dirt and bad smells:

• Sprinkle some baby powder on the carpet before vacuuming for a fresher smell.

• Restrict your pets’ movements for ‘the duration’ so that you don’t have to vacuum every cushion or check in every corner for dead ‘treasures’ they’ve brought in to show you.

• A scrub with sugar soap will remove fingerprints, and it’s also good for those greasy rooms like the kitchen and any adjoining family room.

• Stains on sofas that will not come off call for a throw-over cover or slip cover. These are available in chain stores.

• A mouldy shower curtain should be replaced, and solutions to the perennial tile grouting nightmare include scrubbing it with a toothbrush and bicarbonate of soda (not a lot of fun), attacking it with an anti-mould solution or applying new grouting.

• The smell of damp can be eliminated, or at least disguised, with a product such as Damp Rid. If you have blocked drains, invest in a plunger or get the plumber out to visit.

Little maintenance jobs you’ve been putting off, like another coat of enamel here, or a touch-up on the skirting boards there, should be next on your list.

Lastly, tidy the places you think nobody would ever look, because people look everywhere these days, including in cupboards, wardrobes (even if they’re not built-ins!), medicine cupboards, inside the oven – nothing should surprise you. Leave these tidying and cleaning jobs for last, but don’t neglect them.

A common experience of sellers who’ve gone through the major spring clean outlined above is to fall in love with their homes all over again! If that happens to you, remember, there’s always next spring.

Selling your home checklist

• Have you informed your neighbours about inspection times? They may keep the noise down and even help you by sprucing up their gardens
• Have you cleared the bedrooms of clutter and removed unnecessary furniture? This will help highlight large bedrooms and make smaller ones look bigger
• Have you washed the curtains and blinds?
• Have you cleared all the junk from your verandas or the side of your home?
• Have you remembered to clean the windows?
• Have you checked that your home and contents insurance covers household items damaged or stolen during inspections?
• Is the garden looking the best it can?

Have you arranged for the pets to be looked after during inspections

This article has been republished with permission from Your Mortgage

Would you pay more for an energy-efficient house? Or one that was water-wise? When we polled our readers 62 per cent said they wanted the house they were buying to be eco-friendly, my first reaction was to ask; Are people just saying that? Or are they following through and voting with their wallets.

Here is what you told us. The question posed was: Is the eco-rating of a home a major factor in your buying decision? And the answers were …

Yes, absolutely: I would only buy a house that is designed to have minimal impact on the environment (27%);

Yes, it would be ideal if the house had some energy efficient measures installed such as solar panels or solar hot water: You can really make some good savings on your bill power bill and it also helps the environment (35%).

No, it’s considered after other factors: A good eco-rating is nice to have however I will always first consider price and location (25%);

No, not at all: It’s hard enough to find the right property without considering a property’s eco-rating (12%).

Like I said it got me wondering. My feeling was that with the cost of housing having just leapt ahead in many parts of Australia, and the strong conservatism that has swept through consumer spending, many people would simply be happy to find something they can afford.

Then again, you only need to look at the votes the Greens party received in the last election to know there is concern about the environment out there, so maybe that is translating to housing choice?

The whole question of eco ratings is pretty pertinent, given there’s a move on to make energy rating mandatory across Australia for homes that being sold or leased. It’s already in play for commercial spaces.

See page 26 of this Council of Australian Governments’ document where the council says it wants to "Phase in mandatory disclosure of residential building energy, greenhouse and water performance at the time of sale or lease, commencing with energy efficiency by May 2011." The group reasons that would make credible and meaningful information "publicly and readily available to market participants to assist them in making lease/purchase decisions." The mandatory disclosure process could be modelled on that already enforced in the ACT.

If you take a look at houses for sale in the ACT you’ll see that every one has an energy rating from 0-10. It’s been that way since 1999. A 0-star rating is very poor and means the building shell does practically nothing to reduce the discomfort of hot or cold weather. A 5-star rating indicates good, but not outstanding, thermal performance. People living in a 10-star home are unlikely to need any artificial cooling or heating.

All good but will people pay for more efficient houses? There’s an interesting government study, Energy Efficiency Rating and House Price in the ACT, which found that if you’ve got two houses on the market that are pretty much the same except for their energy ratings, the house with the higher energy efficiency rating will command a higher price.

The study was based on 2005 and 2006 data, and ran various models. One found that "if the energy performance of a house improves by 1 star level, on average, its market value will increase by about 3 per cent (2.5 per cent in 2005 and 3.8 per cent in 2006). Therefore, if a property owner installs R4 ceiling insulation at an approximate cost of $1200 they will, on average, improve the energy performance of a poorly insulated home by at least 1 star. This means that a detached house sold in 2005 for $365,000 could fetch an additional $8979 with only a 1 star improvement in energy rating".

That was before the surge in eco awareness of the last five years, and pre Al Gore’s climate documentary, which seemed to have a big impact on the Australian psyche.

In older areas many buyers accept the houses will have a poor rating, but in newer spots where neighbouring homes tend to perform well, a poor rating will raise eyebrows. You can see why it would be important in Canberra – it gets pretty hot and cold there, and would be an expensive place to keep a draughty house comfortable.

Coventry goes so far as to suggest to vendors, that if they need to do anything to smarten up the home, they considering adding some energy efficient measures as they go. It could be something as simple as rubber-backed curtain and pelmets.

Angus Kell, NSW/ACT manager of building advisory service Archicentre, says its commonsense now that now people are more aware of environmental issues, and the rising cost of energy and water, that it would affect their property choices. He’s says a well-designed house can slice a family’s energy bill by one-third. Energy-saving bells and whistles can shrink the bills even further.

Original story from Carolyn Boyd www.domain.com.au

Potential first homebuyers who want to jump off the rental roundabout should consider the effects of a strengthening economy, particularly as lenders begin improving borrowing conditions.

Expected interest rate rises and higher living costs will compel many landlords to recoup lost funds by hiking rental prices, affecting many prospective buyers who juggle rent with saving for a deposit.

Mortgage Choice spokesperson Kristy Sheppard said, “Consumer confidence in the housing market is quite strong as we face a bumper spring, but there are hesitations from first time buyers who are unsettled by affordability concerns as they struggle to raise a significant deposit.”

“The latest ABS housing finance figures show a small increase in the number of first homebuyers as a percentage of total owner-occupied dwelling commitments, up point one of a percent to 16.1% in July. Our data supports this. However, that ABS figure was 25% for the same period last year.

“Many would-be buyers biding their time as tenants will be feeling a tighter pinch thanks to already-rising house and unit rents. Combined, these increased 2.9% over the year to June, according to RP Data’s June 2010 Quarterly Rental Review. While this probably hinders their savings ability it could be the persuasive stimulus they need to move into home ownership.

“The good news is, several lenders have begun loosening loan approval criteria. In some cases this means increasing the amount they will lend to 95% of the purchase price from 90% earlier this year and 80% during the GFC. Borrowers who choose such lenders will require only a 5% deposit plus other possible purchase costs such as lenders mortgage insurance and legal fees.

“With lenders tipped to soon raise variable interest rates independently of the cash rate cycle, fixed rate loans are looking more attractive. Mortgage Choice’s August customer loan approval data shows fixed rate demand rose for the first time in three months. These loans are often popular with first timers, who are more likely to need peace of mind over their repayment level.

“That’s all well and good, but potential buyers must knuckle down to combat higher housing prices, which inevitably mean higher loan sizes. Thankfully for them, growth is plateauing in many areas.

“The ABS reports the current first homebuyer average loan size is $282,500. In contrast, the Mortgage Choice 2010 First Homebuyers Survey found the majority of respondents purchasing their first home before February 2012 will apply for a loan of between $300,001 and $400,000.

“At present, we’re looking at higher than average property listings with lower than average competition between buyers. But it’s a cycle. As positive sentiment grows so too will demand, which may mean now is a good time to act. What prospective first homebuyers really need to do is explore their choices carefully – both property and mortgage wise – before leaping in too quickly.”

Source: www.australianhousehunters.com.au

Here’s a challenge. How fast could you pay your mortgage off? The sad realisation hit me earlier in the year that I’m not likely to get rich anytime soon. I know – why did I even think that would happen?

The only path to financial freedom is going to be to make sacrifices – some pretty big ones – and slash the mortgage as soon as possible. Then compound interest and investing will be able to actually earn us money. The sooner the mortgage is gone, or at least significantly reduced (given the size of mortgages these days!), the more money we will have to enjoy life.

Yes, it can be a little boring trying to pay a slab off the mortgage. But once you owe a lot less you’ll be able to use that spare money to do things that you want, instead of feeding it to the bank all the time. If you’re in deposit saving mode, the tips below will also be helpful.

#1 Stop Spending. Sounds simple, but do you find yourself wondering where all your money went? Does it leak out of your wallet like a bucket with a hole in the bottom? We’ve tried budgeting before but it just seemed too complicated. After a couple of weeks we’d get bored and the whole thing would go out the window. So now we’ve just decided to stop spending on pretty much everything – except the essentials, and a couple of luxuries we just can’t live without.

#2 No new clothes. In fact no new anything. Terrifying for some, I know. But we’ve decided to put a ban on buying any new clothes for two years, and most other goods too. I already have enough threads to dress the people of a smallish nation so it really shouldn’t be too much of a challenge. It’s just the boredom factor, really. Second-hand op-shop bargains are allowed and it has become surprising to see what you can actually find, if you have the time to look. And given we’re not heading out to pubs and cafes anymore, we have to do something with our time.

We’ve got little kids so obviously they can’t wear the same clothes for two years, unless we put bricks on their heads. But we’ve made it known that we welcome all hand-me-downs, and have also made a habit of perusing the op shops and second kids’ clothing markets. It’s amazing how many near-new clothes you find for just a few dollars, or items that even have the tags still attached.

#3: Lose the pay TV. It’s a luxury that is costing you a pretty penny. With the growing number of channels on free to air, there’s a lot more choice for nix on the box these days. And if you do the sums, you’ll probably find that even hiring a few DVDs a month is a lot cheaper than pay-TV. If there is something you must watch – sport for example – try to arrange to see it at a friend’s house who has got pay TV. As a last resort head out to the pub to see it – but be careful your beer bill doesn’t cost you more than your monthly pay-TV would have!

#4: Join the library. Now that you’re not watching as much pay TV you might have more time to read books – and you can do it for free from your local library. Check out their DVDs and CDs too. If your library doesn’t have what you want you can ask them to bring it in from another public library. In many areas this is free. In others they’ll charge about $2 or $3 to do it. Recently my three-year-old wanted me to get him a Gruffalo audio book. Instead of buying it, we asked at the library, and they got it from another library for us. We had to wait about two weeks, but it provided some great anticipation for my son, and cost us nothing.

#5 Quit the gym. Go for a walk/run/ cycle/swim instead. Now we are coming into spring, there should be ample chance to get out and about and exercise without having to pay for it. If you need motivation, try to arrange with a friend to exercise with. Make a date for something active, such as tennis, swimming or walking.

#6: Ditch the car. Get a bike, or opt for two feet and a heartbeat. I don’t mean sell the car, I just mean avoid using it when possible. Of course if you have two cars and think you can survive with just one, it might be worth offloading your second. Otherwise keep your fuel costs down by jumping on a bike when you can or for very short trips, walk. We have a Christiana trike, which is great for carting the kids around and also for heading to the markets on a weekend. If you live in an area where there are organised car pooling groups, it might be worth checking them out as an alternative to owning your own car.

#7: Entertain at home. Going out can be pricey, especially if you are buying alcohol too. Entertaining at home can be just as much fun, and stress-free (and cheap) if you ask everyone to bring a little something to contribute. If you do head out for a meal, look for cheaper restaurants where you can BYO alcohol for a low corkage fee.

#8: Home brew is a go-go. Since my hubby started home brewing a year ago, I reckon we’ve saved a small fortune in beer. If you’ve got a green bent, it’s potentially better for the environment too, because you’re reusing the bottles and not paying for all that heavy ready-made beer to be shipped about. If you are a wine drinker, try to save money by buying wine in bulk.

#9: Holiday close to home. Look for cheap options, such as camping, staying in caravan parks, or house-sitting for friends and family. Try to get something with kitchen facilities where you can make most of your meals – eating out can be a significant cost of holidays.

#10: Grow a few vegies. It can be pretty simple to grow some herbs in the garden (or pots) and a few basics such as spinach, lettuce and tomatoes. Pottering about watering and weeding them can also be relaxing after a stressful day at work.

#11: Babysitting circle. If you’ve got young kids, considering swapping babysitting services with friends. We have a magnet system where we use magnets as payment. Each family starts with four magnets. We often babysit the kids in their own home, in the evening. So one parent stays at home with their own children, while the other minds the second family’s children. It works a treat. You can arrange for the circle to work with several families or you could have your own arrangements with a couple of different families, as we do.

#12: Limit your mobile phone calls. If you’re bursting out of your mobile phone plan each month it might be time to examine your habits. Can you limit your conversations or cut down your texting to save money? Or could you email or skype someone instead?

#13:  Pre-made is pre-paid. Go for fresh with food where you can. Don’t get caught out buying pre-made things such as soup. It’s pretty easy to chuck a few vegies in a saucepan along with some stock powder and boil it up. Pre-made sauces (the add meat and vegies variety) can also be an expensive choice that could be replaced with a few basics such as stock powder, cornflour and garlic. It’s always good to make sure you’ve got a few basics in the fridge or cupboard so you’re not tempted to get take-away – even if it’s as simple as tinned fish, a cheap packet of pasta and sauce, or baked beans on toast as a stopgap.

#14: Buy a water bottle – and use it. Buying bottled water is crazy when you can refill from a tap. And resisting soft drinks, juice and flavoured milk will also save you plenty of money over time. Drink some water and eat an orange instead. It’s a lot cheaper, and better for your waistline too.

#15: Pack your own. Whether it’s work or an outing, there’s no doubt that food brought from home is going to be cheaper than lunch on-the run. It can get a bit tedious at times, so allow yourself to go really wild on occasion and buy takeaway. Otherwise bring your own and watch your mortgage start to be whittled away.

Original story by Carolyn Boyd, a property journalist and keen follower of Australia’s housing market.

MELBOURNE could overtake Sydney as the least affordable Australian city to buy a home in if trends showing housing affordability plummeting to near-record lows continue.

A combination of interest rate rises and property price growth has seen housing affordability worsen more in Melbourne than other capital cities over the past year.

The deteriorating situation for first home buyers and young Australians was revealed in the latest Housing Industry Association affordability survey for the June quarter.

The HIA-CBA Housing Affordability Index fell 9.1 per cent over the last three months to be 32 per cent lower compared to the same period last year, showing a worsening situation nationally.

Affordability in regional Victoria fell by 9 per cent. In Melbourne, it dropped by 6.7 per cent, down 39.8 per cent on a year ago.

The index combines interest rates, household incomes, home prices and other factors, such as the removal of the first home buyers’ impetus to determine housing affordability.

It doesn’t give a suburb-by-suburb breakdown of the most or least affordable places in capital cities or regions.

According to property analysts RP Data, the most expensive electorate to buy a home is Wentworth in NSW. It includes Sydney’s wealthiest suburbs: Point Piper, Bellevue Hill, Vaucluse, Double Bay and Dover Heights.

On a more simple measure of affordability, the median house price of the marginal Liberal seat held by Malcolm Turnbull – which needs a swing of 3.9 per cent to change hands – is a staggering $1.65 million.

By contrast, Julia Gillard’s safe Labor seat of Lalor – held by a margin of 15.5 per cent – has a median house price of $300,000 and is the most affordable metropolitan electorate in Australia, RP Data analyst Tim Lawless said.

It includes the suburbs of Laverton, Point Cook, Werribee, Rockbank and Melton.

Neither main political party has released significant policies addressing home affordability or high house prices, despite the federal election being two days away.

"There has been a dire lack of commitment in this federal election campaign to address the substantial hurdles aspiring home owners face," said HIA chief economist Harley Dale.

In Melbourne, affordability dropped year on year by 39.8 per cent. Affordability in Sydney, by contrast, dropped 33.5 per cent. ”If that trend were to persist then you would rapidly be approaching a situation where Melbourne is on a par with Sydney in terms of [least] affordability,” Mr Dale said.

Housing affordability reached a record low in March 2008 when bank interest rates were above 9 per cent. The latest score on the affordability index in Melbourne is one point above the low of 2008.

The largest falls for the June quarter were recorded in Sydney (-9.1 per cent), Regional Victoria (-9.0 per cent), Regional Tasmania (-8.8 per cent) and Adelaide (-8.7 per cent).

Story by Simon Johanson domain.com.au

Thousands of animals across the country are being abandoned every year because landlords are unwilling to rent homes to people with pets, the RSPCA says.

The RSPCA manages about 160,000 animals Australia-wide each year, and the charity’s ACT chief Michael Linke says shelters are bursting at the seams because changing living situations mean people can no longer stay with their pets.

"It’s unfair someone’s expected to surrender an animal under those circumstances," he said.

"It’s a heartbreaking thing. I’ve sat in the room with people as they’re surrendering their animals; they don’t want to do it but their choices have been limited.

"It’s their only option because of pressure on rental accommodation, and they’ve taken that difficult decision.

"It’s heartbreaking for our staff, but then we’ve got the double whammy because we then need to find a home for that animal."

Mr Linke says pet owners struggle trying to rent private and single-dwelling houses the most.

"We’ve been calling on the Real Estate Institute and private land-holders to loosen the ties a bit and be more forthcoming in allowing people with pets to find accommodation, because we’re finding a lot of people are surrendering animals to move into free-standing houses," he said.

Jacqui Limberger and her partner Ryan Blunden created a software application which helps find pet-friendly rentals on realestate.com and domain.com.

Their website also helps pet owners write a resume for their furry friends, to help give them a better shot of being approved by real estate agents.

"Research has show a lot of landlords and agents may not even consider letting to someone with a pet until they’ve seen its credentials and references from other landlords," Jacqui says.

"It gives applicants another piece of evidence to say ‘My pet’s not a problem, I’m a good tenant and I take responsibility for my pet.’

"It’s about providing people with information and resources, so landlords see pet renting doesn’t have to be a problem and also to help applicants put their best foot forward."

Inner-city kitty?

But there may be some good news for pet lovers.

The RSPCA’s Mr Linke says that these days, there’s more chance of then being approved to rent units and apartments, and a new study has found you don’t necessarily need a big back yard to own a dog or cat.

Susie Willis from the Petcare Information and Advisory Service (PIAS) says a recent study of 800 people found pets and owners who live in units are just as happy as those who have backyards.

"There are some breeds of dogs that really fit indoor living – like pugs, whippets, french bulldogs – that don’t actually like it too hot or too cold, so being indoors is ideal for them," she said.

"Toilet training is obviously important but the reality is, most healthy adult dogs can be quite happy with two or three toilet breaks a day."

She says there’s no reason for people who live in a small inner-city place to not have a pet, and the PIAS has put out a ‘how to’ guide to help people out.

"We’ve got tips on how to prevent people from becoming bored, exercise, how to create a pet-friendly environment," she said.

"The whole point is, you can keep dogs without a backyard, but you do have to be careful with the way you manage the situation.

"We go through things from what to think about when choosing a dog or cat, how to find reliable sources to get them, what to think about when deciding on different breeds, and then we look at common problems and give tips and advice on how to solve issues.

"We also look at rental situations because it can be difficult to own pets in that situations.

"One of the things we’re conscious of doing is trying to make sure that people don’t get the wrong sort of pet and they don’t get a pet if they can’t give the necessary commitment to its ongoing care."

Story By Cassie White – ABC News

In fact, both the national figure and the NSW numbers are at nine-year lows. Included in this data release is the proportion of loans to first home buyers. In NSW, this proportion seems to have bottomed out, bubbling along just above the low of 16 per cent seen in March.

House prices for the June quarter continued growing but at a slowing rate. This was a good result for existing home owners. Some of this strength was due to investors continuing their return to the market, as evidenced by the increase in investor finance in the past 12 months, filling the gap left by exiting first home buyers and other owner-occupiers.

However, this trend reversed in the June numbers, with the value of loans to investors falling significantly for the first time in nearly a year. So, while auction clearance rates and first home buyer numbers seem to have stabilised, it’s very likely the drop in demand for loans for owner-occupied and investor housing will translate into flat or falling prices across Sydney during the spring season.

Indeed, a closer look into June-quarter house prices showed that in the month of June, prices did fall slightly across Sydney as a whole. Of course, a pause in growth or some orderly declines in prices is good news for aspiring owners and probably necessary to encourage first home buyers back.

Matthew Bell is the economist for the Fairfax-owned Australian Property Monitors.