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State Of The Nation Compiled By Kevin Lee of Smart Property Adviser

No Relief In Sight For Small Business The market power of the major banks is so dominant that they can ignore any reduction in interest rates the Reserve Bank of Australia delivers, making any such move irrelevant to the management of the economy. 6 December 2012. More.

New South Wales Top 40 Highest Rental Yield Suburbs: From Boggabri To Tarro Via Lethbridge Park RP Data has released the most recent suburb rental yields. Property Observer has a compiled a table of the top 40 yields for New South Wales. Boggabri is out in front with a high 11.6% yield, followed by Broken Hill with a 9.5% yield. 30 November 2012. More.

Three Of The Big Four Announce Interest Rate Cuts Westpac, CBA and NAB have all announced cuts to their standard variable home loan rates by 20 out of the 25 RBA basis points – leaving ANZ to play catch-up. Westpac's standard variable rate will fall to 6.51% on December 17, while CBA's drops to 6.4% on December 10. 6 December 2012. More.

Cheltenham Moving Towards Apartments And Townhouses The Melbourne bayside suburb of Cheltenham is following in the footsteps of the inner-city market, developing a new apartment complex – to be known as No.9 – and a townhouse project named Central Park. No.9 is the latest $18 million boutique project by Launch Corporation. No.9 is currently 35% sold. 30 November 2012. More.

New First Homebuyer Data Provides Hope To Brokers Following AFG reports of a slump in “lifeblood” first home buyer loan applications, new housing affordability stats may be just what the doctor ordered. Bankwest and the Real Estate Institute of Australia (REIA)/Adelaide Bank have both released new data today, demonstrating an improvement in housing affordability across Australia. 5 December. More.

Issue # 018 December 7, 2012

Property Owners Set To Benefit From Proposed King Island Wind Farm Property owners with a turbine lease to sign would be most likely to benefit if the $2 billion wind farm on King Island goes ahead, according to buyers’ agent Rob Zubin of My Property Hunter. Last week the Tasmanian Government announced the potential for the construction of a 200-turbine wind farm covering 12 to 15 per cent of the western side of small King Island, in the path of the Roaring 40s (strong westerly winds). 5 December 2012. More.

Try Before You Buy Home Option In Queensland It's the "try before you buy"' deal that promises more than just a sample of ice cream. Prospective home buyers are being given the chance to live in the fully furnished unit of their dreams before buying it. The daring sales pitch comes amid a slow property market where house hunters are holding off because they can't sell their existing home. 3 December 2012. More.

Most Common Complaints Against Landlords An online tenant portal has revealed what tenants are most likely to dislike about you and your property. 42% – Repairs, 24% – The rent, 24% – Harassment. 29 November 2012. More.

Property Manager Tries To Clean Out Investor Think your property manager is a useless rotter? Spare a thought for WA investor Bronwyn Holmes who says she’s had to deal with unthinkable levels of incompetence. “Why do you build me up… just to let me down?” asks the Foundations classic Build me up buttercup. Investor Bronwyn Holmes finds herself asking the same question. 5 December 2012. More.

Shop Around To Get The Best Deal For Your Mortgage Australia’s four million mortgage holders are being advised to shop around after the latest Reserve Bank rate cut put fixed rates at their lowest levels in three years. The battle between the Big Four banks for a slice of the lucrative $1.12 trillion mortgage markets has seen 1-3 year fixed rates fall well below the standard variable rate. 6 December 2012. More.

Housing Shortage Worst It’s Been in 100 Years Poor planning and a major underinvestment in vital infrastructure are failing new residential areas. That’s the frank assessment delivered by the Urban Development Institute of Australia (UDIA) in response to the State of Australian Cities 2012 report released today by the Federal Government. 4 December 2012. More.

Interest Cut Supercharges Markets Leading Into Xmas This is the catalyst real estate markets have been awaiting. The Reserve Bank cut the official interest rate 25 basis points today, its sixth cut since November last year. The cash rate is now 3%. The RBA previously reduced rates in November and December last year, and May, June and October this year. 4 December 2012. More. E: T: (02) 9980 1311 M: 0416 083 995 Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

State Of The Nation Continued… Off The Plan And On The Boil Home hunters are queuing for hours to secure off-the-plan properties as developers mount increasingly sophisticated campaigns to lure buyers. Offthe-plan sales in some Australian capital cities have been lacklustre in recent years, with major developers including Mirvac having to refund deposits on postponed residential projects. 2 December 2012. More.

First Homebuyers Pull Disappearing Act First homebuyer demand for home loans has collapsed in New South Wales and Queensland, following an overhaul of both states’ grant systems. Mortgage broker AFG claims that last month it arranged just 96 home loans worth $31m for first homebuyers in Queensland, compared with 265 mortgages worth $79m the month before. 3 December 2012. More.

MYOB Sub Notes: Explosive For Returns And Capital ‘Debt’s back baby. People are buying this crap’. That’s a quote, attributed to a banker, your author recently heard. If you’re buying high yield securities, it’s worth bearing in mind. MYOB Subordinated Notes is a fair but risky offer. Bain Capital, owner of MYOB Group, is paying handsomely to claw back some of the capital it has invested, offering a margin of 6.7% over the 90-day bank bill rate on the $150m offer. 6 December 2012. More.

Homeowners Too Shy To Haggle On Their Mortgages, Survey Shows But home-loan customers too timid to take on banks are missing out on saving tens of thousands of dollars. Despite being the biggest expense of a lifetime, many Australians are reluctant to directly haggle over a mortgage, research suggests. 2 December 2012. More.

Jesinta Campbell Makes Her $605,000 Mark In Property Market At just 21, Miss Congeniality Jesinta Campbell is officially a first-home buyer - and it's all thanks to her former "boss", Mark Bouris. The savvy onetime Celebrity Apprentice contestant recently fell in love with a chic Mosman apartment following a spur-of-the-moment inspection. 6 December 2012. More.

Personal Insurance 'Non-Negotiable' For Mortgage Borrowers: Smartline Mortgage holders should view personal insurance as a ‘not negotiable’, says Smartline Personal Mortgage Advisers’ executive director, Joe Sirianni. Sirianni says taking on any significant financial commitment, such as a home loan, brings with it the need to protect a client's family’s financial interests should illness or death occur. 6 December 2012. More.

Keep Your Tenants, Keep Your Income According to a recent RP Data report, in hundreds of locations across Australia - especially those in the wider regions of Brisbane and Sydney – it’s cheaper to buy a property than to rent. Woe is me; what does this mean for investors? Absolutely nothing. This report may scare investors into thinking that tenants will stop renting and buy their own properties. But this will not happen. People rent for many different reasons. 23 November 2012. More.

Controversy Corner Queensland Premier Campbell Newman Claims, Unlike Other Politicians, He Always Tells The Truth Premier Campbell Newman claims he always tells the truth - unlike other politicians. On ABC radio Thursday morning, Premier Campbell Newman said some of his government's strategies, including public service job cuts, contributed to the reversing economy. 6 December 2012. More.

Cash Rate Predictions For 2013 The RBA has cut the cash rate - but is it low enough? Leading economist Shane Oliver and ING Direct's Glenn Baker provide the inside scoop on what 2013 holds for lending rates. Borrowing rates are still not low enough, says AMP Capital’s chief economist, Shane Oliver, and the mortgage market won’t start to see dramatic improvements until the RBA lowers them to at least 2.5%. 6 December 2012. More.

If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to

Making That Windfall Last Some people look at an inheritance as a gift that can be spent freely. Advisers suggest it pays to take a long-term view, writes Lesley Parker. One in five people who receives an inheritance of $100,000 or more spends the lot, rather than saving or investing at least some of the money, according to a US study that probably reflects what happens in Australia, too. 5 December 2012. More.

Some Parting Advice “When it comes to investing in property, no matter what …. always, always listen to your gut instinct.”

Until Next Time…. Kevin Lee

E: T: (02) 9980 1311 M: 0416 083 995 Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

State of the Nation Issue 18 Dec 7 , 2012  
State of the Nation Issue 18 Dec 7 , 2012  

There’s an interesting article in this week’s State Of The Nation. According to the article 'The Cash Rate Predictions for 2013', borrowing...