Australian Federal Government gets Tough on Foreign Ownership Rules

FOREIGN students and temporary residents will face tough new rules when buying a house and will have to sell on leaving Australia.

The Federal Government’s crackdown, to be announced today, reverses its December 2008 decision to relax foreign ownership rules.

Bowing to public pressure, the Government will also introduce a hotline for concerned locals to “dob in” foreigners they suspect of breaching the rules.

Under the rules, temporary residents and foreign students will be:

SCREENED by the Foreign Investment Review Board to determine if they will be allowed to buy a property.

FORCED to sell property when they leave Australia.

PUNISHED if they do not sell by a government-ordered sale plus confiscation of any capital gain.

REQUIRED to build on vacant land within two years of purchase to stop “land banking”. Failure to do so would also lead to a government-ordered sale.

There have been growing claims that real estate prices have been forced up by wealthy Asian families, especially from China and Korea, buying up property and outbidding locals at auctions.

The Government is concerned by anecdotal reports that foreigners are “collecting” houses, often in the same street, and leaving them empty when there is a shortage of housing.

Full story: http://ow.ly/1H6eF

Phillip Hudson – Herald Sun

New to West End? Welcome!

 

West End is well known for it’s diversity in many ways and our restaurant scene carries on that tradition! Why not try one of our local restaurants… BON APPETIT!

We have two distinct dining areas to whet your appetite:

Hardgrave Road: http://ow.ly/1H6oY

Boundary Road precinct: http://ow.ly/1H6po

Reviews? We welcome fair and honest comments….

Tip Sheet – Childproofing Your Home

As mentioned in our previous post “Child Proof Your Home” – The following are some handy tips and hints on how to childproof the home – increasingly a necessary must for homeowners and investors alike.

Kitchen and Wet Areas:

• Scald-preventing devices are installed on bathroom taps, so the temperature of bathwater can be measured, and the water thermostat is turned down to 37 degrees Celsius.
• Unplug and store all electrical gadgets. Install latches and/or locks on cabinets, drawers and lids (toilets are a great place for kids to throw items into).
• Keep handles and cords out of reach by facing handles into the centre of the stove, bench or towards the rear wall.
• Cords should be kept short.
• Store cleaning supplies, hygiene products and other points and dangerous items such as razors, knives, etc in a locked closet or cabinet.
• Living and Sleeping Areas: Securely attach entertainment and shelving units to the wall to prevent them falling onto, or being pulled down by, a child.
• Place screens, preferably wall mounted, around fireplaces, radiators and other heating units.
• Shorten strings and cords on curtains and blinds or tie them up as high as possible to avoid children becoming tangled in them.
• Remove any poisonous plants and ensure house plants are kept out of a child’s reach.

Outdoor Areas:

• Ensure pools, and spas, are fully fenced, with well-maintained, self-closing gates.
• Fence off play areas from the street and the driveway because cars and kids don’t mix.
• Safely store mobile BBQ’s, and ensure they are properly covered when not in use.

Child Proof Your Home

Children are always at risk of injury, but never more so than in the family home. 

There are many simple measures that can be taken to prevent simple accidents, often with far-reaching and serious long-term effects, from occurring in the home.

“It’s a simple case of taking a critical view of objects around your home and understanding where the potentials for hazards are,” Metro First National Principal, Geoff Dowling, said.

“Take the time to get down and crawl around the home so that you can see for yourself where curious hands and adventurous spirits might roam.”

While childproofing the home is important for families, investors should also take the time to understand how child-friendly their investment property is, as it may represent a marketing point for their investment property.

Injuries are the leading cause of death in Australian children aged one to fourteen, accounting for nearly half of all deaths in this age group.  More children die from injury than of cancer, asthma and infectious diseases combined.

Unintentional injuries make up around 95% of all child injury deaths, with young children under the age of five years most at risk of unintentional injury.

“The most common place for young children to be injured is in their own home, so ensuring the safety of our homes should be paramount for parents to keep their children safe,” Mr Dowling said.

 “There are so many things that are precariously balanced, just waiting to be pulled down, knocked over, bumped into or climbed on.

“And as the child becomes more mobile and dexterous, they love to put things in their mouths and they don’t discriminate between toxics or poisons and lollies or biscuits.”

First National Metro has produced a Tip Sheet to assist parents, and investors, create a safe environment in the home for children to thrive and grow.  

This tip sheet can be found here.

Beat Future Rate Rises

As consumer confidence continues to fall in the face of increasing concerns over future rate rises, Ray Ellis, Chief Executive of First National Real Estate advises home owners to plan now to avoid unnecessary stress and the potential of losing the family home.

While the Reserve Bank has held interest rates for the time being, further rate rises in 2010 are inevitable, along with the strong possibility that living costs will also go up,” Mr Ellis said.

“Which is why we are suggesting people take a good look at the household budget and start factoring in how they will meet these challenges in the coming year.

“Even a 1 per cent increase in interest rates, which is expected by the end of 2010, will translate to extra repayments of $193 per month on a $300,000 home loan, which may force many homeowners to default on their mortgages and lose much of the value they have built up in their homes.

“But there are some simple steps we advise homeowners should consider when planning for these future interest rate rises.”

Minimise the home loan balance.  Pay off as much as you can over and above the minimum monthly repayments.  There are a number of ways this can be done, including making fortnightly rather than monthly repayments; putting any additional cash into the mortgage (e.g. live off the amount of last year’s wages and put any wage increases into the home loan), chart spending and expenses and any surplus achieved as a result should go into the mortgage.

Consider re-financing.  There are often better deals to be found in a competitive market and even a small reduction in the home loan rate can significantly reduce the mortgage over the long term.   Even if you do not re-finance, make sure the valuation on your home is up to date and reflects recent price increases.

Prepare a budget.  Draw up a budget, clearly outlining all your expenses and spending and factor in rates 2 per cent above the actual current level.

Consolidate Debt.  Put all debts under the one umbrella – the housing loan.  Home loan rates are often much lower than those of credit cards or car and personal loans.
 
“Your home is not just your major asset, it is also where you live, so it is important that it does not cause you stress,” Mr Ellis said.

Fundamentals Top Of Mind For Property Investors

Written by Michael Cant, Commonwealth Bank Executive General Manager Retail Products, for RP Data

Recent months have certainly been interesting for property investors. With the Australian economy turning the corner onto the road of recovery and three successive cash rate increases by the Reserve Bank of Australia between October and December 2009, it’s becoming more important for property investors to focus on having the fundamentals right when it comes to managing their investments.

No doubt that some, if not the majority, of property owners are feeling some impact from an increase in their mortgage repayments. However, if you’ve got the right fundamentals in place, you’ll find managing interest rate fluctuations a lot easier.

A simple way to assess how well you’re managing is to constantly review your budget. Do you have a strong, but realistic budget that allows for you to make extra repayments on your mortgage? Prepaying your mortgage when you can afford to will help knock off a lot of interest, especially during the first seven years, since the majority of the first years’ payments go towards interest only.

In addition, can you alter the frequency of your loan repayments? Going from monthly to fortnightly or weekly will deliver a positive impact on your repayments. This will not only be kinder to your cash flow but will pay a little extra off the home loan each year as there are more repayments calculated on a weekly or fortnightly basis in the calendar year.

Finally, and most importantly, always keep sight of your long term investment goals. By implementing strong fundamentals into your property investment plan now, you’ll make a big difference to your financial future.

For more information on property investment visit: www.commbank.com.au/propertyinvestor

Keep Your House Safe This Summer

Summer is all about having fun in the sun, but it is also about safety and making sure your home is protected from the damage that can be caused by sun, bushfires, storms and other natural disasters.

First National Real Estate has some great advice to help homeowners and residents prepare their homes for the risks posed by hot weather.

According to Stewart Bunn, National Communications Manager at First National Real Estate, all areas of a home should be considered, from the swimming pool, garden and the home itself.

“Whether you want to keep your home safe from the threat of a bushfire, storms, or even just to make sure the kids can swim in the pool safely, now is the time to get to work on making the home safe,” Mr Bunn said.

Tips include making sure swimming pools are properly maintained, gutters are cleared of debris, and areas around the home are well trimmed and cleared of garden mess like leaves, twigs and overgrown lawns.

“Scrub and undergrowth around the property are ideal fuel accelerants for a fire,” Mr Bunn  said.

“Garden hoses should be connected to taps and fire resistance mesh screens to doors and windows will help prevent embers from entering the home in the case of a bushfire.  Installing a sprinkler system around the home is a simple and easy preparation step to take that may mean the difference between losing your home and surviving a bushfire.”

Other tips for fire safety include ensuring all smoke alarms inside the home are in correct working order and any flammable items such as wood, boxes and other recycling materials such as newspapers, flammable liquids and gas bottles are stored well away from the house.

For swimming pools, it is essential that fences are checked for sagging or shifting, as they represent a safety issue as much as an aesthetic one.  Another important safety issue for swimmers is pool water quality.

“Pool owners should make sure they continuously test their pool water quality, vacuum it regularly and keep it clean from debris,”  Mr Bunn  said.

“When a storm, flood or bushfire hits a town, this importance increases tenfold when you consider the increased risks and health hazards posed by the natural disaster.

“Floodwaters may have brought sewage or muddy waters into your swimming pool, or fallen branches and chemical run-offs may have been introduced as a result of bushfire fighting activities or from roofs covered in bird droppings and other animal matter.

“Not to mention the health hazards that burning houses, sheds and other buildings or structures can leave in rubble and ash that may find their way into the swimming pool.”

Simple home maintenance will protect your house from the ravages caused by the sun.  Tips include:

• Wash the exterior of your house.  Use a professional house-washing service if possible as they will legally use high-pressure washes which use far less water than a regular hose.
• Check all window seals and door frames to keep out hot air.  Replace seals where necessary and keep draft stoppers handy for the base of back and front doors.
• Clean ceiling fans and air conditioner filters before use to ensure their efficient operation.
• Check exterior paintwork for signs of wear and tear and apply a fresh coat or touch-ups where necessary including exterior house walls, decking, verandahs and fences.
• Refill children’s sandpits with fresh sand and inspect play equipment to ensure the effects of winter have not eroded their safety ratings through rust or weakening.