House prices slump

Posted to Waverley Leader (20/7/2011) on 20/7/2011 at 10:53 PM
Commenting on "House prices slump"
http://waverley-leader.whereilive.com.au/news/story/house-prices-slump/

Readers should be made aware that changes in government policies on investment by overseas investors coupled with numerous interest rate increases during the second half of 2010 retarded the property price growth, and in fact reversed its direction in recent months.

It must also be noted that increase in median price does not really imply that one's property has increased in value, but signals the high-end market properties are up for sale, probably from those who once can afford more luxurious life-style but now have to join the common people in experiencing mortgage stress. Buyers beware!

FEDERAL BUDGET: Seniors miss out

Posted to Waverley Leader (11/5/2011) on 15/5/2011 at 8:55 PM
Commenting on "FEDERAL BUDGET: Seniors miss out"
http://waverley-leader.whereilive.com.au/news/comments/federal-budget-seniors-miss-out/

Adrian Jackson, not everyone has the opportunity to earn a good income. Many families still face the hands-to-mouth situations now. True, there are dole bludgers, gamblers, and people "breeding" many children as you crudely put it, but then these are not the majority. Have you been divorced? Many couples are forced to sell their houses during the split up, because neither has enough to buy out the other half.

If you think owning a rental property is plain sailing, you can be very wrong. If one does not have additional income high enough to justify negative gearing, they are just asking for trouble. Rental property return is not as good as many expect, and for seniors, they are not in a position to wait for capital growth.

Service apartments are a better option for income flow then owning an apartment which costs an arm and a leg for many fees and charges. During tough time, don't expect 100% occupancy rate for the rental property or equivalent to 12-month rental income each year; sometimes the bond money is not sufficient to cover damage to the property and unpaid rent.

Buyers rush to apartments in Glen Waverley

Posted to Waverley Leader (27/4/2011) on 27/4/2011 at 4:53 PM
Commenting on "Buyers rush to apartments in Glen Waverley"
http://waverley-leader.whereilive.com.au/news/story/buyers-rush-to-ikon-apartments-in-glen-waverley/

Buying off-the-plan is buying a drawing, buying an apartment is buying air space, but buying a freehold house is buying the precious commodity called land!

The apartments are miserably small in size, and not unlike some of the early high rise in downtown Hong Kong. I hate to be on the higher floors overlooking the tired, dirty rail tracks.

Good luck to all the buyers!

Real Estate Forecast

Posted to Letters to the Editor, Monash Weekly on 14/12/2010
Title: Real Estate Forecast

Economy is not as robust as what ABS reckoned, and the real unemployment rate is much higher than reported. Many people face financial trouble in meeting mortgage payment, and more mortgagee auctions will take place;

1. Closing the loophole of allowing the foreign investors to invest in secondhand properties without FIRB approval results in the collapse in sale price in many suburbs due to lack of competition;
2. Change of government policies in international education results in drastic drop in international students coming to Australia, thus kills off student accommodation rental demand. Many properties used for such purpose will be forced to sell;
3. Change of policies also results in closure of international colleges, which normally lease commercial buildings used as classrooms. Many of such buildings will be vacant;
4. 2010 Christmas retail sales will be below previous years', threatening the survival of some small businesses. Unemployment will shoot up beyond many economists' forecast in Jan and Feb 2011. Businesses for sale will be increased;
5. The median price across the board in Melbourne will decline to around $550,000 by June 2011;
6. In general, there will more listings than sales from December onwards;
7. 2011 is not a year for the real estate rookies - only the experienced survive.
8. ASX index will be below 5000 points for another few more months, likely up till March.

Decline in International Students

Posted to Letters to the Editor, Monash Weekly on 4/12/2010
Title: Decline in International Students

The change of government policies during mid-2010, and tightening the granting of PR to international students resulted in drastic drop of international students coming to Australia, so much so that the international education and student accommodation industries may face extinction.

The international education generated over $18b "export" income, and created unprecedented demand of sessional teachers, commercial building for classrooms, student accommodation, public transport usage, ethnic groceries, etc.

The spin-off of having these international students is that they provide lowly paid workforce doing all the menial tasks, and long unpalatable hours of work. While this may sound unethical, it does help many businesses to cut cost and increase productivity.

It seems many policy makers had neither consulted the industry players nor paid any attention to possible negative impact which might realise.

If the unfortunate predictions were to come true, we can see, first, a definite rise in unemployment - from teaching profession to many service providers. Second, many CBD's will experience population drop, and decline in vibrance. Third, the student accommodation market will be annihilated. Fourth, the number of passengers using public transport system will also decrease.