ISSUE 84 March 2 2013
propertyguide .com.au REAL ESTATE • NEW HOMES • LAND • INDUSTRIAL
Perfect blend of space, style and setting
See page 31 for details on this property
To be part of this publication contact one of your local sales reps.
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REAL ESTATE • NEW HOMES • LAND • INDUSTRIAL
ESTATE • NEW
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AVAILA See pa ge 27 SOUT BLE ACRO for de H HEDL SS TH tails on E ENTIR AND ONLIN AND • W See page 27 for details on this this pr E RE EDGE property E EVER operty FIELD GION: PO Y WEE See pa RT HE • DA KEND ge 27 for AVAILAB DLAN AT ww MPIER • AVAILABLE ACROSS THE ENTIRE D• LE ACRO details TOM REGION: PORT HEDLAND REGION w.pilb SOUT•HKARRATHA on this PRIC KARRAT arap property HEDLAN SS THE ENTIR roperty E • NEW HA SOUTH HEDLAND • WEDGEFIELD • DAMP DAMPIER • TOM PRICE E RE AN D D Propert M • NEWMAN ON AN AND ONLINE EVERY WEEKEND guide. y Man LINE EV • WEDGEFIELD GION: PORT agemen AT www.pilbarapropertyguide.com com.a ERY WE HEDLAN • DAMP t .au u EK D• Free EN IER Rea
REAL ESTATE • NEW HOMES • PROPERTIES LAND • INDUSTRIAL AVAILABLE
Karratha w: www WA 6714 .realaus sieasset s.com.a u
Now Serv PORT HEDLicing clien AND • ts in: KARRATHA
Free Market Appraisals
PH: 9144 4663
Shop 18 Centro Karratha, Welcome Road Karratha WA 6714
Roebourne Commercial shed Available for
PH: 9144 Lease 46and 63Sale Call
bourne Agency Bookings AvaRoeCom mercia ilable for l shed Lease and Hogan Media: 08 9381 3991Sale email@example.com
Now Servicing clients in: e: info@reala ussieasse PORT HEDLAND • KARRATHA ts.co
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MARCH 2 2013 29 29
PURCHASING A PURCHASING APROPERTY PROPERTY INPERTH PERTH OR IN OR SURROUNDING AREAS? SURROUNDING AREAS? CALL T.B.I FOR ALL YOUR BUILDING REQUIREMENTS CALLINSPECTION T.B.I FOR ALL YOUR
BUILDING INSPECTION REQUIREMENTS ASK US ABOUT OUR COST EFFECTIVE INSPECTION PACKAGE DEALS AND SAVE $$
ASK US ABOUT OUR COST EFFECTIVE INSPECTION PACKAGE DEALS AND SAVE $$
1300 633 802
1300 633 802
Check that everything works before you buy First home buyers and more experienced buyers can often forget to check whether all the mechanical equipment on a property works before they buy it Buyers must remember that it is a term of every contract that the property, at settlement, will be in the same state and condition it was in immediately prior to the contract date. It makes sense therefore for the buyer to fully understand what is being purchased and to ask the real estate agent what items are not working. The REIWA Offer and Acceptance Form used by our members has a section for buyers and sellers to agree to any special conditions. This might include representations that the plumbing and wiring be in safe working order. If a door, shower screen or window is broken, these are also matters you can negotiate be fixed by the owner before you settle, however, the seller has no obligation to do this and may not agree to repairs. If you add a special condition, be aware that it may jeopardise acceptance of your offer.
The purpose of the presettlement inspection (not the final inspection), which takes place one week before settlement and not during the purchase transaction, is to check that the property is in the same condition as it was when last inspected by the buyer and not prior to the contract date.
familiar with the pool cleaning equipment and filter.
It is also to ensure that any special conditions have been satisfied.
Test all the power points with a phone charger or hair dryer in each of the rooms.
It is most important to remember that the purpose of a pre-settlement inspection is not to add new conditions or make requests of the seller for faults that existed at the time you made your offer. Therefore it’s important to check some of the more common things to inspect prior to entering into a contract might include: The hot water system; learn how it works and whether it may need repairs. If it’s a solar hot water system ask about the booster switch and where to locate it. If the yard is reticulated, check that it works properly and ask to see where the sprinklers and solenoids, where they exist, are located. Check that any air conditioning is running smoothly or that ceiling fans operate safely. Where there is a swimming pool, look for any damage and become
Check that the plumbing and lights work by operating all the taps and switches and run any exhaust fans in the kitchen and toilet.
Inspect all the water drainage outlets from the roof. Be confident the guttering is sound and find out where any soak wells are located. If the property is on septic tanks for sewage, check that it works and locate the tanks.
226 582 / 08 9584 2544
Asking $170,000 + stock
Mark Krasenstein 0419 917 699
www.natreal.com.au • Largest new residential
Test the locks and latches on all doors and windows and make sure that curtains and blinds are secure and operational. After becoming familiar with the property you are then ready to make an informed decision on the purchase price. The price you offer may need to take into account items that you think will need replacement or repair in the future, but remember that in a tight sellers market the seller will be looking for the best offer and terms. (source: reiwa.com.au)
Investor looking to buy in Pilbara. Call 0439 742 377
♦ Huge premises at 6 Clark Street, Dunsborough ♦ Mobile options, with fully equipped and sign written vehicle ♦ Well established, operating since 2001 ♦ Plenty of local work with past customer base of over 400 ♦ Work includes fabrication, stainless steel welding, Aluminium welding, boat repairs etc. ♦ Excellent array of quality plant and equipment ♦ Take on an apprentice ♦ Make a ‘good’ living in the Dunsborough area!
blocks in Karratha
• Stage 1 – Over 80% sold • 462-800sqm from $275,000 • Ready for immediate
• House & Land packages
— karratha —
Land for SaLe
• Stage 2 coming soon Contact us or visit Ray White Karratha today. Onsite sales office open:
FRI, SAT & SUN 15 -17 MARCH 10 am - 5 pm Kingfisher Way, Nickol Richard Naulls 0438 852 444 9185 2444
Matthew Smith 0430 766 360 9463 7283
ATTENTION: BOILER MAKERS & WELDERS
Ensure that the property has the required legal pool fencing.
SELLING YOUR HOUSE? KARRATHA 3x1 House. Very good condition. BIR and Fans all bdrms. Ducted and split in lounge. Open plan. Easy maintenance gardens. $1100 p/wk. Avail end of March.
Perfect blend of space, style and setting! Look smart and easy low
to a full length patio with ceiling
maintenance living. Set amongst other quality homes in the highly sought after Baynton
The People you know and Trust
West area is this beautiful brand
The living area extends through fans and an outdoor kitchen, large synthetic grassed area , double rear gate access and a garden shed.
new 5 bedroom 3 bathroom home.
shea oak kitchen with stainless steel appliances, tiled flooring to the living
fastfacts For sale
areas, jarrah trimmings , open plan
18 Perentie Road Baynton Price $1,049,000-$1,099,000
room. It’s unique to find this level of
20 Wallaby Street, Baynton
detail and class!
Pilbara Real Estate
Marissa 0428 355 514
living/dining and separate theatre
Each of the bedrooms are fitted with split system air conditioning,
ceiling fans, both TV and data points and built in robes.
This big, bold and unique 4 bedroom, 2 bathroom + powder room brick and iron home will delight even the most discerning and fastidious of purchasers. Whether you’re looking for your dream family home or investment, than this is one not to pass over.
COMPANY FACT Pilbara Real Estate #1 in REIWA Quarter Awards
Karratha has the largest Shopping GOL F CL UB & BOWLING CL UB Centre in the Pilbara
FOR RENT 9 Greig Place, Nickol Price $1,300 pw
DE G R E Y
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1&2/8 Sharpe Avenue Karratha WA 6714
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Relax in this sparkling below ground pool with an amazingly large rear patio just perfect for that summer afternoon BBQ and room to invite all your friends.
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• Listings SOLD Oct-Dec • Listings SOLD by Value Oct-Dec
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Featuring timber panelled ceilings,
is a complimentary service to the community.
Property of the week 4 Finch Street, Nickol
Tray ceiling with down-lights
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The People you know and Trust
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WEDGETAIL EAGLE AVE FALCON PARADE
KOOKABURRA ABURRA WY
Emma 0407 386 988
Pilbara Real Estate
RANKIN RD GOSHAWK
Property Type: House
4 Finch Street, Nickol
propertydirections TATTLER ROUTE
N ST DIXO
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BALMORAL HOLIDAY VILLAGE
Available now. Call Emma to make a viewing soon.
and an enclosed yard.
system air con throughout make this house ideal for Pilbara living.
bathroom house with an office
Plenty of parking at the front of the house with a double carport and room for extra cars. Large shady patio out the back for outdoor entertaining. Auto retic, easy care gardens and split
Large modern 4 bedroom, 2
32 MARCH 2 2013
Aussies hold too much of their wealth in housing Australians have a dangerously disproportionate share of their wealth in housing, warned Macrobusiness’ chief economist, Leith van Onselen. Van Onselen said mortgage affordability remains poor on an overall level and the proportion of household income ‘chewed-up’ by mortgage interest payments is 34% higher than in 1989, when mortgage rates peaked at 17%. “Virtually all growth in housing values has come from land price appreciation, with land prices roughly doubling relative to GDP since the late 1980’s.” The ratio of Australian mortgage debt to GDP has risen four-fold since 1990, following deregulation of the financial sector, while the share of loans channelled into housing has increased from 24% of total loans in 1990 to 59% currently. “The rapid expansion of mortgage debt and housing values has been funded, to a large extent, by heavy offshore borrowings by Australia’s banks and is represented by a massive expansion in bank assets – mainly mortgages.” Strongly rising commodity prices have also played a role in increasing housing values since 2004 via their positive impact on incomes, said van Onselen. “The Australian Treasury estimates that 50% of Australia’s income growth over the 2000’s came from the oneoff terms-of-trade boom, whereas McKinsey estimates that 90% of Australian income growth since 2005 came from the mining boom.” The number of property investors has also surged – from 696,000 in 1990 to 1.75 million in 2010 – and nearly 60% of investors are baby boomers. “Two-thirds of investors were negatively geared in 2010, losing on average $2,750 per year, or a total of -$4.8bn. Three quarters of negatively
geared investors earned less than $80,000.” Van Onselen said the country’s ‘rigid’ urban planning system has ensured that the increased demand has manifested in rising prices rather than increased dwelling construction. “Empirical evidence from the US and elsewhere shows that markets with responsive land-use regulations have more affordable housing markets and experience less price volatility, as changes in demand manifest more in new construction rather than prices – growth in US house prices bore little relation to income and population growth.” He says US markets with responsive land-use regulation remained affordable and experienced relatively low house price volatility throughout the bubble/bust period. “In Georgia [USA], policies mandating lending to the poor and under-privileged resulted in massive subprime lending, yet, Georgia’s delinquencies never reached the levels of the supply-restricted bubble states. Big demand ‘shock’ from the GFC caused rate of household formation to plummet as individuals increasingly opted for group housing.” This, in effect, turned a perceived housing shortage into a glut. But could the group housing option be viable in Australia? Yes, said van Onselen – and it’s actually already started to grow in popularity. “According to the 2011 census, the percentage of group households increased to 4.1% from 3.9% in 2006, whereas the percentage of single (lone person) households declined to 24.3% from 24.4%.”
housing stock. Should economic conditions deteriorate materially, the number of Australians opting for group accommodation would likely rise significantly, just as it did in the USA, which could potentially turn a perceived housing shortage into a surplus.” While Australia’s restrictive urban planning regime has helped drive prices higher during the boom, van Onselen says it’s unlikely to save the country from price falls in the event of a major shock to demand. “A perceived housing shortage could easily turn into an oversupply, just like it did in the supply-restricted states of the USA.”
ABS data confirms this trend, with the number of people per dwelling rising since 2006, while the number of bedrooms per dwelling has also been trending upwards.
Factors including a 2011 peak in commodity prices (and subsequent decline) and an aging population could further reduce the economy’s potential demand for housing.
“There is significant latent capacity (excess bedrooms) in the pre-existing
“Severe housing correction is an outside chance if Australia
experiences a mining bust with sharply lower commodity prices combined with a big reduction in mining investment.
boundaries and restrictive zoning. This would increase competition and contestability in the land market and lower land prices;
This combination would cause sharp falls in incomes, a big increase in unemployment and potentially a credit squeeze.”
2. Speed-up development approval processes, so that housing supply is able to respond more quickly to changes in demand;
In order to free up the supply of housing, van Onselen says the government needs to do the following:
housing-related 3. Ensure infrastructure is adequately financed and provided to facilitate the provision of affordable housing.
1. Ensure an adequate supply of affordable land for housing by removing regulatory growth constraints such as urban growth
(With special thanks to investment property magazine)
• Got a pound? Then you could end up with a house
© Randy Glasbergen / glasbergen.com
Houses selling for $1.50 Next time you throw away a dollar fifty on a packet of crisps or a chocolate bar, keep in mind that this is enough money to buy a house.
The rock bottom price is on the
Successful applicants will need to refurbish the houses to “a reasonable state of repair”, ensuring they are warm, weatherproof and have modern facilities. The council had originally been in talks with a developer to bulldoze the houses, but decided against this in November, leaving the houses boarded up. (source: www. yourinvestmentpropertymag.com.au)
Thanks to an initiative to regenerate struggling areas of the United Kingdom, Liverpool City Council is offering homes in the city for just £1 (A$1.49).
condition that the houses are given a complete makeover.