www.awnw.com.au
Issue #315 – Wednesday, 27 January, 2016
Albury Wodonga’s largest circulating newspaper
We come from a land down under NEW Australians were presented with their citizenship certificates at yesterday’s Australia Day ceremony, where they took the pledge to become a part of the land down under. FOR MORE SEE PAGE 2
As safe as houses By MONIQUE KUZEFF THE dream of a house, a car and white picket fence is looking rosy for Border residents, according to some local real estate, banking and finance experts. But others sound a cautionary note. With real estate prices in Melbourne and Sydney slowing recently, some have been touting regional areas as attractive places to purchase property with the prospect of long-term growth. An increasing number of young home buyers have been obtaining loans and purchasing property on the Border. People who previously had rented were suddenly able to buy because of the low interest rates on houses, Hutton Real Estate Principal Nigel Horne said. Both Mr Horne and MVS property valuer Peter Mitchell expect local housing prices to remain stable or perhaps have a modest increase throughout the year. “Properties are selling but the difference is we don’t have the heat in our market that exists in the capital cities,” Mr Horne said. “We don’t have 20 people coming along to a viewing with 10 of them making a bid.” Mr Horne, who has over 20 years experience in local real estate, said 2003 was the last time the Border saw a significant boom in real estate prices and that was partly due to external factors. “No-one saw it coming; neither the agents, lenders nor valuers - no-one. “There was a wave of investors from the capital cities and consequently they were paying the price that was being asked, or if the property was going to auction they were driving up the prices. “It was because the prices in capital cities were driving away investors.” After the 2008 global financial crisis, lending criteria for banks tight-
ened. According to WAW Loans Manager Phil Gavin the bank will not lend money to people if it may put them in a position of hardship. “We have to prove people have sufficient incomes to reach their commitments so we don’t put them into financial difficulties.” Mr Gavin urged caution to potential buyers advising them to take all their other debts into consideration before seeking a loan. Further warnings were made by Mr Frank Kelly and Dr Calvan Wang from the Faculty of Business at Charles Sturt University. Risks are related to expectations according to Dr Wang. “The expectations include that interest rates will remain this low, that anything you buy will appreciate and never have a housing crash, and that you will always have a good job,” he said. “The younger generation has never seen a real recession.” Mr Kelly commented that issues include job security and the ability to adapt to a fast changing employment pool, which necessitates ongoing lifelong education. “The average young person will likely need to adapt to several vocations during their lifetimes, to a greater extent than previous generations,” he said. These concerns seem corroborated by forecaster BIS Shrapnel as reported in the Australian Financial Review. Australia’s construction boom is expected to turn into a surplus by 2018 and has ameliorated adverse economic effects caused by downturn in the mining sector. Tighter lending to investors, changes in tax rules and increase in interest rates could further decrease housing activity which could potentially affect the buffering effect of construction on the economy.
Young, free - and true blue, too AUSTRALIANS all let us rejoice, for we are young and free ... The Albury and Wodonga communities got together to celebrate Australia Day at Les Stone Park and Noreuil Park, where they welcomed in new Australians and congratulated the Border’s most valued and selfless individuals and groups.
the best choice of LAND, both sides of the Border
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