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It’s the bargain property hunter’s annual guide to the best places in WA to buy property

Terry Ryder, of hotspotting.com.au, has released his annual list of WA’s top “hotspots” – suburbs and towns where there is potential for good capital growth or better-than-average rental yields.

While the locations are little changed from last year, the reasons for buying have

Source  :  www.watoday.com.au

Australia has its first female Prime Minister after Julia Gillard replaced Kevin Rudd at a partyroom meeting this morning.

In an unprecedented move, Ms Gillard will replace Mr Rudd less than six months out from this year’s federal election.

Once she is sworn in by Governor-General Quentin Bryce, Ms Gillard will become Australia’s 27th prime minister since Federation.

Ms Gillard, a Victorian who represents the Melbourne seat of Labor, will be joined by Treasurer Wayne Swan as her deputy. Mr Swan is from Queensland, like Mr Rudd.

After the caucus meeting this morning, Ms Gillard emerged with Mr Swan by her side.

She said she was honoured to be Australia’s first female PM.

“I feel very honoured and I’ll be making a statement shortly,“ she said.

A smiling Mr Rudd emerged from the partyroom 20 minutes later with Senator John Faulkner by his side. He refused to comment to the throng of reporters which chased him back to his office.

After it became clear that Mr Rudd’s support in the ALP was evaporating, he decided against standing for the PM position this morning.

All elements of the Labor Party swung behind Ms Gillard in the face of opinion polls which show the Government still in a winning position but with dire satisfaction ratings for Mr Rudd.

The Labor Party’s returning officer for the meeting, NSW senator Michael Forshaw, said Mr Rudd, Ms Gillard and Mr Swan had given gracious speeches.

Declaring Ms Gillard would lead the Labor Party to victory at the next election, Senator Forshaw conceded the events of the past 24 hours had been tough

“This has been a difficult time for the Prime Minister and has been a difficult time for the party,” he said.

A visibly tired Senator Forshaw paid tribute to Mr Rudd.

“He led us to victory in 2007, a victory that was achieved when many people thought we still would be spending more years in opposition,” he said.

“That was a great achievement.

“We now have a new team and I’m looking confidently forward to the next election.”

Brand MHR  Gary Gray, who according to a recent Westpoll would lose his seat despite sitting on a 6.1 per cent margin, said ahead of the poll that a change was needed to turn around the Government’s electoral chances.

“It’s necessary to have both a fresh pair of hands, fresh eyes and a different approach to the management of government,” he told ABC radio.

It is understood Mr Swan will remain in the Treasury portfolio.

Source : www.thewest.com.au

The median price for a Perth house will pass $600,000 within three years as the city’s property market reclaims its title as the strongest and fastest growing in the country, a new report predicts.

The BIS Shrapnel residential property report forecasts house prices in Perth will climb an average 7 per cent a year for three years, pushing the median price to $610,000 from $500,000 today.

No other capital is expected to enjoy such strong capital growth, with even higher interest rates unlikely to slow the Perth market as much as others.

Senior project manager Angie Zigomanis said even though the Perth market slowed before other cities in 2007, conditions were improving on the back of another resources boom. Money flowing from commodities would soon push up house prices across Perth.

“With prices below peak levels in real terms and income in Perth set to grow substantially as the next round of resource expansion projects get up and running, solid price growth should continue,” he said.

“Nevertheless, further increases in interest rates will prevent the boom in prices that we saw in the last upturn.”

Mr Zigomanis said the median house price would climb 22 per cent by the middle of 2013. This growth would be quicker if the Reserve Bank did not increase interest rates in the next six to 12 months.

Growth at that rate would surpass other capitals such as Sydney (up 20 per cent), Melbourne (11 per cent), Brisbane (12 per cent), Adelaide (20 per cent), Hobart (12 per cent), Canberra (14 per cent) and Darwin (12 per cent).

House prices climbed rapidly through the second half of last year and into the first four months of this year.

Mr Zigomanis said this was directly because of record low interest rates in response to the global financial crisis and a “pull forward” of demand from the first-homeowner’s grant. Not only would house prices outpace inflation, they would affect rents.

“Even though overseas migration inflows are steadily easing, a deficiency of stock is still in place with dwelling construction below underlying trend,” he said.

Recent Australian Bureau of Statistics figures show a fall in loans for people buying homes but an increase in loans for investment properties. Financial market analysts do not expect official interest rates to rise until May next year.

source  :  www.thewest.com.au

The airline war has reached a new low, with AirAsia offering return flights to London for $217 from the Gold Coast or $240 from Melbourne.

If the booking confusion doesn’t deter your search for the ultimate fare (all legs need to be booked separately and through Kuala Lumpur), you may be rewarded with an unprecedented discount flight.

AirAsia has been a dominant player in the ultra-cheap flight sector, recently making headlines for offering free flights to Bangkok from Asian ports, to help restore tourism after the recent political unrest. Earlier last month, it excited travel enthusiasts with $378 Australia-London flights.

The current discount-basket fare is part of a sale which started at 2am this morning and will run for 48 hours, for travel only between October 11 and November 14, 2010.

Although the base flights are some of the cheapest in Australian history, don’t expect to indulge in the normally free benefits of international travel – the low-cost airline will charge you for meals, beverages, in-flight entertainment and extra baggage.

AirAsia recently reported a net profit after tax of $A81.23 million for the first quarter of the year. The airline sources 16 per cent of its revenue from their extra charges, referred to as the “unbundling of services”.

Source  :  www.thewest.com.au

The Reserve Bank has delivered some badly needed relief to mortgage holders, deciding today to leave official interest rates on hold.

For the first time since February, the RBA board did not use its monthly meeting to lift rates which now stand at 4.5 per cent.

In a statement, bank governor Glenn Stevens said the issues around sovereign debt in Europe and its impact on financial markets were a major reason behind the move.

He said the impact of these on the wider economy were still to be determined, arguing global growth is still expected to be around trend for the rest of this year.

But Mr Stevens signalled interest rates were likely in the future on the back of the return of the mining boom.

“In Australia, with the high level of the terms of trade expected to add to incomes and demand, output growth over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing,” he said.

“Inflation appears likely to be in the upper half of the target zone over the next year.

Consistent with that outlook, and as a result of actions at previous meetings, interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago.”

The decision followed new figures from the Australian Bureau of Statistics which showed retail sales growing 0.6 per cent in April and a 14.8 per cent collapse in dwelling approvals.

However, the retail sales – while stronger than expected – were pushed up by food sales which jumped 1.3 per cent. Once this sector, which accounts for 40 per cent of all sales, is excluded retail was up just 0.1 per cent.

Other ABS figures showed government spending is holding up the economy and will add about 0.8 percentage points to tomorrow’s GDP result. Without that burst, the economy may have actually contracted in the March quarter.

CommSec chief equities economist Craig James said the figures showed the RBA had no option but to leave rates where they are for some time to come.

“Given the latest round of data, there are good reasons for the Reserve Bank to leave rates on hold for the next few months,” he said.

“Not only are retail sales holding at very weak levels, but the housing sector is showing signs of consolidation.”

Treasurer Wayne Swan says the Reserve Bank’s decision to leave the official cash rate unchanged is a “welcome relief”.

“This news will be welcome relief to Australian families and businesses around the country, who are of course doing it tough,” Mr Swan told parliament minutes after the decision was announced.

The national accounts for the March quarter are due for release on Wednesday.

“I have every confidence that with right polices in place, our economy can continue to be one of the best in the world over coming years,” Mr Swan said. Consistent with that outlook, and as a result of actions at previous meetings, interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago.”

“Not only are retail sales holding at very weak levels, but the housing sector is showing signs of consolidation.”

“Source  :  www.thewest.com.au

New Housing Minister Bill Marmion has shocked the property market by saying he wants to flood WA with housing lots to cut home prices.

In a speech to Parliament that has set alarm bells ringing throughout the real estate industry, Mr Marmion said the Barnett Government’s aim was to “bring house prices down”.

“The Department of Land is looking at this issue very closely,” he said.

“It owns land and it is looking at its land stocks and will release as much land as possible.

“That will reduce the pressure on housing supplies. Our aim is to bring the median house price down and to have it lower than the median house price in other States.”

Mr Marmion, who took over the job last month after Troy Buswell was sacked, said the only thing the Government could do to achieve its aim was “release more land and houses”. He refused to elaborate on his comments yesterday.

March quarter figures from RP Data put the median house price in Perth at $480,000, equal to Darwin, but behind Sydney ($500,000) and nation-leading Canberra ($510,800).

Hobart had the cheapest prices in Australia at $323,750.

The State Government established an Office of Land and Housing Supply in Thursday’s Budget and is reviewing available government land which Premier Colin Barnett said would “achieve a comprehensive and co-ordinated approach to housing affordability issues”.

Shadow housing minister Mark McGowan warned the policy could result in houses being worth less than what people paid for them.

“If people go into negative equity with their house, that’s the worst possible outcome,” he said.

Real Estate Institute of WA chief executive Anne Arnold said Australians stored their wealth in the family home and it would be “politically unwise for any government to go down that path”.

But the plan won support from developer Nigel Satterley, who said land needed to become more affordable.

But he said the policy would not cut the price of existing houses.

“We’re on the cusp of a block shortage and whatever the Government can do should be encouraged,” Mr Satterley said.

Analysts at RP Data found in April that houses in Perth’s cheapest suburbs cost at least $60,000 more than those in the most affordable areas in the other major Australian cities.

Hillman was named the cheapest suburb in Perth, with a median house price of $280,000 – higher than the cheapest suburb in Adelaide ($200,000), Brisbane ($205,000), Melbourne ($218,000) and Sydney ($219,000).

Perth had less than 10 per cent of its 259 suburbs with a median house price under $350,000, compared with more than 20 per cent in all other big cities.

Blocks of land in Perth were the most expensive in Australia, according to a recent analysis by RP Data and the Housing Industry Association, with a single square metre of “prime earth” now costing an average of $521.

Source  :  www.thewest.com.au

Mining magnate Clive Palmer says his iron ore company has put a West Australian project on hold because of the federal government’s resources super profits tax.

Mr Palmer continued his attack on the government today, saying he is prepared to put everything he has got into fighting the new tax.

He said the board of directors of his company Mineralogy decided to put the brakes on one of his planned Balmoral South iron ore projects in the Pilbara region on Tuesday due to growing uncertainty over the tax.

Source  :  www.watoday.com.au