Tenants warned to brace for increased rents

Perth tenants should brace themselves as rising house prices, improving economic conditions and more newcomers to the state combine to force up rents this year, a leading property researcher says.

The latest rental report by Australian Property Monitors shows asking rents in Perth have increased in the first three months of the year.

The median weekly asking rent for houses in the metropolitan area is now $370, a $10 increase on the previous quarter and the first rise in more than a year, while units increased $8, to $358.

But with rising house prices, increased rents have not led to increased yields. The gross yield for houses is now 4.06 per cent, while units are yielding 4.62 per cent.

That leaves Perth ahead of only Melbourne among all state capitals.

APM economist Matthew Bell said he expected Perth rentals to increase a further $10 a quarter for the rest of the year, with a strong resources sector and population growth the driving factors.

But this was unlikely to be fast enough to maintain yields, which would drop slightly as house prices rose further. The median Perth house price is believed to have passed $500,000.

Really, the outlook for both rents and house prices is pretty strong,” he said.

“Yields will probably soften again, but historically they are at pretty good levels.”

Houses were usually bought by investors for capital growth, with units offering better yields, Mr Bell said.

Meanwhile, the Urban Development Institute of Australia said its own research showed a six-month delay in planning approval could add 7 per cent to the price of an average block in the metropolitan area.

UDIA WA chief executive Debra Goostrey said developers were doing what they could to ensure “affordable” land was being made available during a time of increasing prices.

“We also need the support of a fast and efficient planning approvals process to avoid costs associated with delays,” she said.

Her comments follow those last week by property researcher Terry Ryder, who said claims of housing shortages were a beat-up by property industry lobby groups.

Advertisement

Read Full Post »

Perth properties quickest to sell

Perth properties are being sold quicker than any other state capital, new figures show.

Research from property analysts RP Data and Rismark International shows it took 24 days to sell a house in November and two days fewer for units.

The time taken to sell a unit was the quickest in Australia, while only in Canberra (23 days) were houses sold quicker.

The average price for houses and units in the metropolitan area at the end of November was $460,000.

While that was a drop of 1.09 per cent on October, making Perth the only city where prices fell, it was still an increase of 6.47 per cent on the start of the year and a 5.87 per cent rise on the same time in 2008.

The average house price was $485,000, down 1.11 per cent on October, but up 5.94 per cent since the start of 2009, while units dropped 1 per cent on October, but rose 8.55 per cent in 2009, to average $385,000.

The news was not all good for homeowners. Landlords found rental yields dropping, to 3.94 per cent for houses and 4.41 per cent for units, both down 0.04 of a percentage point on October.

Rismark managing director Christopher Joye said the key drivers in the market in the latter half of 2009 were upgraders and investors, and this was expected to continue this year.

Once mortgage rates “normalised” to between 7 per cent and 8 per cent, price growth would drop back. As many borrowers did not reduce mortgage payments when rates fell, they should be well placed to absorb rises.

Source  :  www.watoday.com.au

Read Full Post »

Closure of the Capital Investment Scheme on 31 October 2009

From 31 October 2009, the South Australian Government Financing Authority (SAFA) has announced it will not accept any further applications from General Skilled Migration (GSM) applicants who wish to lodge a capital investment, as it will close the scheme.

Since the announcement of the reopening of the capital investment scheme by SAFA on 29 January 2009, the department has contacted all applicants whose cases had been assessed and who indicated they intended to lodge a capital investment.

Any applicants who have indicated on their application form that they intend to lodge a capital investment, but have not yet done so, are advised to finalise their capital investment before the scheme is closed.

Applicants who did not indicate on their application form that they intended to lodge a capital investment, but now wish to do so because they will be relying on the five bonus points to meet the Point Test, should also contact the department and finalise their capital investment before the scheme is closed.

This is the final opportunity for all pre 1 September 2007 GSM applicants to lodge a capital investment. As there will be no further capacity for applicants to make a capital investment to gain the bonus five (5) points, the department will not provide applicants any additional time to make a capital investment once the scheme offered by SAFA closes. Please note that this also applies to those applicants who have appealed to the Migration Review Tribunal (MRT) and those applicants seeking judicial review.

Applicants who still intend to make a capital investment are strongly urged to do so before 31 October 2009.

Please note that only SAFA provides an approved designated security that enables an applicant for a pre-1 September 2007 GSM visa to be awarded bonus points for making a capital investment.

For more information  :  http://www.immi.gov.au/skilled/general-skilled-migration/capital-investment-scheme-faqs.htm

Read Full Post »

Shopping centre cards for antisocial teenagers

Shopping centres in Perth are handing out cards warning youths they could be banned from the venues in a bid to crack down on antisocial behaviour.
   
Security guards at Westfield’s Innaloo, Carousel and Whitford City centres also carry photographs of those already banned.

The youth cards  introduced at the beginning of the year  were not a punishment and were available to all members of the public on request.
   
The cards warned teenagers what behaviour was expected of them, how they could expect to be treated by security guards and the consequences of antisocial behaviour — including bans of 24 hours to six months.
    
Youths are encouraged at the centres but they should not detract from other people’s safety or comfort. Currently there are no serious problems with youths at the shopping centres.
   
Security guards carried photographs of banned youths so they could be easily recognised if they returned before permitted.   

Ms Laschon said shopping centres were a natural, safe meeting place for people of all ages. She said the conditions of Westfield’s youth cards should apply to all shoppers.
   
“The whole idea of screaming at the top of your voice and running around happens with lots of people at the beginning of sale time. It’s not only teenagers that get excited,” she said. 
  
AMP Capital Shopping Centres communication manager Scott Gillespie said the company’s Karrinyup, Garden City and Ocean Keys complexes did not have a similar system in place.

Read Full Post »

Whales Wallowing in Western Australia

The coast of Western Australia is getting busy: the whale watching season is underway and early sightings suggest that not only has the season started early, but there are more whales than there’ve been in decades. Commercial whaling in Western Australia finished up in 1963 with just 500 humpback whales left in the waters, but estimates now put the number of whales that will swim the 8,000 miles from Antarctica to the north of the state at around 17,000. Good work, whales!

Whale watching trips run all up and down the coast and from the capital Perth, too – grab a two-hour trip from Hillarys Boat Harbour for A$62 ($50), or head south to Albany for three-hour cruises that let you come on board again in the unlikely event of no whales showing up.

The only thing that seems to be growing faster than the whale population is the population of whale-watchers. Tourism peeps in West Oz say tourist numbers are growing by 15% every year so you need to hurry to avoid the crowds.

Source  :   www.jaunted.com

Read Full Post »

PM Rudd launches Australia’s WCup bids

SYDNEY (AFP) — Prime Minister Kevin Rudd officially launched Australia’s bid to host the football World Cup in 2018 or 2022.

Rudd told an official ceremony at Parliament House in the national capital Canberra that Football Federation Australia (FFA) had the full backing of the government to bid for the showpiece event.

“The sheer odds are tough against Australia, eight other countries, but the reason the government had got behind the bid is that we as a nation can rise behind this great bid,” Rudd said.

The premier said the chance to host a World Cup was a great opportunity for the nation.                               

“The challenges are great, but the prize is much greater,” he said.

“I salute those who have had the courage and the initiative and creativity to bring forth this idea.”

English Premier League stars, national skipper Lucas Neill and goalkeeper Mark Schwarzer, also spoke at the launch, urging Australians to throw their support behind the World Cup bid.

FFA chairman Frank Lowy said it would be an “unparalleled opportunity” for Australia to earn official acceptance as a World Cup host.

“On the world stage, there is no event with the same level of global appeal or audience reach as the FIFA World Cup,” the property billionaire said in a statement.

Lowy said Australia?s “secret weapon” for winning the World Cup bid was the Australian people, and Australia’s desirability as a travel destination.

“People from all over the world want to visit our country and thanks to the performance of the Socceroos at the 2006 FIFA World Cup in Germany, as well as the many thousands of Australian fans who followed them, the rest of the world has a very positive view of us.”

Lowy also pointed to Australia’s record of hosting successful major sports events such as the 1956 and 2000 Olympic Games.

Australia are among nine bidders, along with Belgium-Netherlands, England, Indonesia, Japan, Mexico, Portugal-Spain, Russia and the United States, for the 2018 World Cup.

The same nine bidders are also in the running for the 2022 World Cup, along with Qatar and South Korea.

World football governing body FIFA will announce both the 2018 and 2022 World Cup hosts in December 2010.

Australia have already qualified to play in next year’s World Cup in South Africa.

Source  :  www.google.com

Read Full Post »

$3billion proposal to upgrade Perth Airport

Perth Airport is set for a $3 billion upgrade over the next 10 years to transform it into a transportation showpiece.    
The capital works program, from private and government sources, is the biggest ever for the airport.

In line there is  a $1 billion in terminal facilities, $525 million for road upgrades and $1.4 billion in hotels and multi-storey carparks. 
   
Terminal WA is set to be opened in 2011, and an integrated international and domestic terminal on the site of the existing international terminal to be phased in over the next seven years. 
  

 Perth Airport chief executive Brad Geatches said yesterday that the airport would become one of the best in the Asia-Pacific region. 
  

The master plan, which is available for public comment until August 10, outlines the airport’s plans through to 2019 and brings development forward 10 years.  
   
The  terminal upgrades, a new ring road and improvements to key intersections will be started over the next 12 months.

The escalators will be on the left of the building and will take departing passengers and the public upstairs. The existing facilities will be for arrivals only. 
   
Major funding has also been committed to upgrade the road network around the airport.

The Budget included more than $115 million in projected major intersection works along the Tonkin Highway interfacing with Perth Airport.

Read Full Post »

It’s Barnett the Builder

Job creation and capital works projects will form the cornerstone of this year’s state budget, West Australian Premier Colin Barnett says. 

The WA government on Thursday will deliver its first budget since elected last year.

“It will be responsible and I think you will see it supports maintaining  jobs and supports the future development of this state,” Mr Barnett said on Wednesday.

“And you will see not only that, but a number of measures designed to maintain jobs, particularly in the small- to medium-size business sector.”

The government is under pressure to maintain a surplus after Mr Barnett’s commitment to deliver surpluses in the next two budgets.

While seeking to maintain the state’s AAA credit rating, the government is also facing demands from WA’s peak business lobby to deliver on an election promise to cut taxes by $250 million.

Mr Barnett said the state’s budget and finances would need some “rejigging” to match a $263 million federal government commitment in Wednesday’s federal budget to put the Perth rail line and bus station underground.

“Yes, we will have to have some rejigging of the state budget and finances because we originally sought 50/50 funding just to sink the rail line,” Mr Barnett said.

“The commonwealth’s taken up the point. It was an issue I discussed with the prime minister in Perth about three weeks ago and I just made the point to him quite informally that if we’re going to sink the rail line it would actually be commonsense to sink the bus station too …

“He’s obviously taken it on board so we’re going to make sure that happens.”

The federal government also pledged $339 million for a deepwater port at Oakajee, in the state’s midwest, which will boost iron ore exports in the region.

The WA government had already spent about $20 million on Oakajee and private proponents were now spending $100 million on the design of the deepwater port and rail line, he said. Continued…

www.watoday.com.au

Read Full Post »

Budget verdict – single mother

Sarah MacPherson, Melville

Sarah has a 19-year-old daughter living at home, and is in the process of starting up a technology-based business.                
 
What Sarah wanted:
Measures to help vulnerable in society, such as pensioners, carers and single parents;
. Increased taxes on cigarettes and alcopops;
. Stimulus packages for small startup companies;
. Maintenance of the First Homeowners Grant boost;
. Investment in education;
. Dumping of the GST charged on sanitary products.
 What she got:
. Increased pensions – by $32.49 for singles and $10.14 per couple.
. The pension age lifted to 67 between years 2017 and 2023.
. First Homeowners Grant boost to remain until September 2009, but to be halved after that.
. Opening up university places for additional 50,000 students over four years from next financial year.
. $437 million over four years to boost number of disadvantaged students at university.
. A 50 per cent small business tax break for eligible capital expenditure.
Her verdict:
“I suppose the first word that came to mind was ‘predictable’,” Sarah said.
 
“The rise in pension age means many of the battlers will have to battle a little longer.
 
“But if you look at the current global economy, they probably haven’t done too badly – they can’t please everybody”

www.watoday.com.au

Read Full Post »

Australian share market opens higher

THE share market has opened marginally stronger the morning after the federal budget was handed down, and following a mixed lead from Wall Street.
At 10.15am (AEST), the benchmark S&P/ASX200 was up 12.1 points, or 0.31 per cent, at 3889.3, while the broader All Ordinaries gained 8.7 points, or 0.23 per cent, to 3872.3.

The four major banks were mostly higher at the open.

ANZ gained 4cents to $16.01, NAB was up 14 cents at $22.00 and Westpac was up 10 cents at $20.48.

The Commonwealth Bank, which reported cash earnings for the March quarter of about $1.15 billion, generating a cash return on equity of over 15 per cent, was down 20 cents at $36.40.

Resources weren’t as lucky, opening lower in morning trade.

Mining giant BHP was down five cents at $34.26, while rival Rio Tinto lost 4.41 per cent to $65.46.

Wall Street wobbled to a mixed finish on Tuesday as investors paused to assess gains from a long rally and mulled the new efforts to raise capital by banks and other firms.

The markets also digested better-than-expected data on the US trade deficit and reassuring comments from Federal Reserve chairman, Ben Bernanke, about the health of the banking system.

The Dow Jones Industrial Average was up 50.34 points, or 0.60 per cent, to settle at 8,469.11.
The tech-dominated Nasdaq dropped 15.32 points, or 0.88 per cent, to 1715.92 while the broad-market Standard & Poor’s 500 index lost 0.89 point, or 0.1 per cent, to settle at 908.35.

On the Sydney Futures Exchange, the June share price index contract was trading 17 points higher at 3885 on volume of 4900 contracts.
www.news.com.au

Read Full Post »