ECHO PROPERTY BUSINESS DIRECTORY
THE BYRON SHIRE
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Comprehensively covering the NSW Far North Coast
Confidence clouds hints of economic joy $UH \RX VDWLVÀ HG ZLWK \RXU property manager? /HW¡V VWDUW WKH FRQYHUVDWLRQ &DOO $QJHOD WRGD\ WR PD[LPLVH \RXU LQYHVWPHQW Mobile: 0421 076 275 2IÀ FH UHQWDOV#E\URQFRDVWDO FRP DX
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M 0428 842 387 D 6639 1209 E ernstreisch@mcgrath.com.au W mcgrath.com.au
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By Colin Brinsden, AAP The steep drop in consumer confidence in recent weeks risks overshadowing positive signs emerging in the economy. A burst of new home building activity is providing a major boost to the economy at a time when resources investment is in decline. And the good news for potential home buyers is that housing affordability is at its lowest point in over a decade thanks to low interest rates and a slow-down in house price rises. But among a raft of new data releases, there also are signs of a significant loss of momentum in the overall economy. The Westpac-Melbourne Institute May leading index, which indicates the likely pace of economic activity three to nine months into the future, showed its weakest reading since late 2011. Back then, the Reserve Bank had just started cutting interest rates, consumer sentiment had slumped and the European sovereign debt crisis was in full swing. Westpac senior economist Matthew Hassan says there are similarities with that episode now, not least the sharp fall in consumer confidence in response to the federal budget handed down two weeks ago. The current slowdown in the index may be temporary, while
the sharp decline in consumer sentiment may reverse or dissipate over time, he said. Other new data showed construction work completed in the first three months of the year rose by a stronger-than-expected 0.3 per cent, buoyed by a 6.8 per cent jump in residential building. This helped to offset a 1.5 per cent decline in non-residential building and a 1.6 per cent fall in engineering work, a consequence of the fading mining investment boom. ‘What is clear is that the construction boom hasn’t turned to a construction bust,’ Common-
wealth Securities chief economist Craig James said. The ‘baton pass’ from engineering to residential building was proceeding nicely. The federal government’s resources forecaster highlighted the extent of decline in committed investment projects in its latest quarterly report, falling from a peak of $268 billion in April 2013 to $229 billion at the end of April 2014.
In the past six months, 21 projects were completed worth a combined $266 billion, the Bureau of Resources and Energy Economics report shows. However, industry minister Ian Macfarlane says the focus is now shifting to production and output. That will last for decades and deliver sustained and substantial economic benefits.
Housing affordability remains favourable: HIA-CBA Record low interest rates helped drive the HIA-CBA Housing Affordability Index to its most favourable level in 12 years during the March 2014 quarter, according to the Housing Industry Association. ‘The continuation of record low interest rates, combined with decelerating home price increases and growth in earnings over the quarter, saw the HIA-CBA Housing Affordability Index improve to its most favourable level since March 2002,’ said HIA senior economist Shane Garrett. ‘The HIA-Commonwealth Bank Housing Affordability Index improved by 2.1 per cent during the first quarter of 2014 and affordability is now 10.8 per cent more favourable than a year ago. ‘Increases in home prices over the past year have been significant. However, the impact of lower interest rates and continued earnings growth has ensured that home purchase affordability has improved over the past year for existing home owners and those on the cusp of entering the market in the short term. ‘As home price pressures ease off, we expect home owner affordability to remain reasonably favourable for the foreseeable future.’
Rare investment in heart of Mullum Lots 1 & 3/53 Stuart St, Byron Bay. 1 x Retail Shop (Mokea Designs) 1 x 2 bed 1st Floor Unit (Rear unit) 2 x undercover car spaces Front and rear lane access Price on application.
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2 m-1 11a y a rd Satu
INVESTMENT, FAMILY HOME OR REFINANCE... Now interest rates have dropped, arrange an OBLIGATION FREE mortgage health check. Are you getting the best loan package? If I can’t ďŹ nd you a better deal I’ll simply tell you. You have nothing to lose and everything to gain. Give me a call or email and contact Russel Shaw. Russel Shaw 6680 8045 0412 833 280
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North Coast news daily: www.echonetdaily.net.au
Janice Ryan, Mortgage Broker 27 years’ lending experience
0400 364 723 janice.ryan@loanmarket.com.au BRO_1115_MAY14 | Australian Credit Licence 390222
Beachside Oasis, Suffolk Park 5/2B Kalemajere Drive. Light-filled and spacious Master suite with treetop balcony 300m from the pristine sand & surf of Tallow Beach 10-minute stroll to the village Quiet, peaceful, leafy location In Dhyana Sands, a small, tightly-held complex
3
2
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More info at www.tinyurl.com/dhyanasands Inspection by appointment. Price $585,000. Call Greg on 0490 513 755. Email gdds@iprimus.com.au.
$585,000
The Byron Shire Echo June 3, 2014 39