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What economists predict for Australian house prices in 2019

In the middle of last year, several top economists were predicting house prices to in fact increase in 2018 – one forecasting as much as nine per cent, but since then house prices have experienced their largest and longest peak to trough decline in recent history spurred on by increased housing affordability constraints, a banking royal commission with a microscope on lending standards, and APRA’s restrictions on new investor loans.

Now that the price falls are well and truly in motion, all five economists recently surveyed by The Australian Financial Review forecast national house values would continue to drop in 2019, with Sydney, the epicentre of the downturn, dragging down the national average.

Stephen Koukoulas, of Market Economics, was most downbeat about the state of the property market, with expectations prices would fall in Sydney between 7.5 per cent and 10 per cent in 2019 after a drop of 7.5 per cent in 2018.

Nationally, he predicted house prices would fall by between five per cent and 7.5 per cent.

“From the 3rd quarter in 2019, I am forecasting some stability in prices as supply and demand forces underpin new activity,” Mr Koukoulas said.

By then he expected cashed-up first-home buyers would be lining up to take advantage of increased levels of affordability.

A key consideration for Geordan Murray, HIA acting principal economist, is that while population growth is slowing, it remains strong and will ensure ongoing demand for housing throughout the cycle.

“The labour market has been improving and is projected to continue to do so. This should contribute to further modest improvements in wage growth,” Mr Murray said.

“There are risks around borrowing costs.”

A key issue mentioned by the economists was that at some point in 2019 is whether the RBA may be forced to consider another interest rate cut if the slump in home prices starts to impact consumer spending and the outlook for inflation.

While each economist offered a variation on how much prices would fall in 2019, each attributed the tightening of credit, rising mortgage rates, and a surge in new supply to the further softening of the market.

To see each economist’s predictions, read the full article on the Australian Financial Review. Please note you will need to be an AFR subscriber to read the full article.

Herewith an Invitation to our Art Sale Exhibition

We would love 💖 you to come and a glass of wine and some nibbles at the opening night!!
See you there?
Please let me know and I will look out for you.
See you there

I am getting back on the bike and it’s not just a metaphor

Not this bike in the feature.
A normal one? Hehehe!
My son and his long-time girlfriend Toni are currently travelling though the US, and some of their things are downstairs – including their shiny new bicycles. My husband bought some sneakers recently and took my son’s bike out, so I decided to take the other one. It’s been a while. I remember cycling alongside my kids when they were off to school at a young age, or weekend trips to Rottnest Island to seek out Qokkas. My grandson loves his pedal bike too, so it’s become a family affair!
It’s so important to keep active at this age, whether it’s daily walks with friends in the morning, or just a 40 minute bike ride around your neighbourhood. I’ve battled bursitis and on and off heel pain, but I feel like i’m in a good place now, and every bike ride is doing me more good.
How do you keep active these days?

Who says in old age you don’t get any fun?

Today our Craft group is enjoying a Bus ride to Kings Park and having a pic Nic there.

pictures are worth more than a thousand words.

Here they are:

Globetrotting. My passion!

I am 72 years of age and every so often I get itchy feet and take off on a trip around the world for a month or a month and a half. I have been doing this for the last 30 years. When we lived in Canada we made more frequent trips with the whole family to visit relatives in Brazil, but now being so remote here in Australia I probably do it every 3 years.
I like collecting stamps in my passports – I’ve actually been having a long-running competition with my husband to see who can collect the most stamps! He has an advantage as he visits remote areas around the world for his work in geophysical surveys. No fair!
In 2017 I *finally* caught up with him and am ahead of him by 3 countries (for now). My next trip will be in 2020 but won’t get any new stamps. I’m visiting my relatives in Canada, USA, Brazil ( my nephew’s wedding), Spain, England and Italy. They’ll have to do. (Hahaha, kidding!)
I have been travelling since 1976 when I left Brazil. I have lived in Canada, Malta, Iran, Kenya and finally Australia. We came here as a family in 1991 when my husband’s company transferred him to Perth, and ended up relocating here permanently in 1994 after falling in love with the place and selling our house in Brantford, Ontario.
It’s interesting looking back at all of the places I have lived and people I have known. What a variety! My son was born in Iran, my daughter in Kenya, and I feel that they have inherited my yen for travel too. My daughter lived in Japan for a year, apart from her now-husband, teaching English, and my son and his long time partner Toni are currently road-tripping through the US and Canada visiting relatives, and plan to do the same in Europe shortly.
We have received news that some of our family from North America plan to come and see us next year. This makes me SO happy! We are always appreciative of people who make the long trek over to see us. As you know, it’s not just a quick train/plane ride! So we always do our best to make sure our visitors have a great time.
I don’t know how long I will be travelling. As long as I am healthy I guess. I love Perth, I feel like I live in resort town with that beautiful West Coast I can see every day, but sometimes I just get the urge to go and see new places, or visit relatives and old friends. I am lucky to be in a position to do so, and I don’t intend to take it for granted.
Where are YOU heading next?

Landlords vital in the fight against homelessness

Homelessness remains a problem in WA and there is much to be done to help our fellow West Australians affected by this.
National Homelessness Week kicks off on Monday 6 August, with this year’s campaign reminding Australians ‘there’s always something you can do’.

As part of the campaign, Shelter WA will be running a series of events in the metro area to raise awareness of homelessness across the state. Landlords Making A Difference is one of these events (details available at shelterwa.org.au), with WA landlords invited to attend to hear from government, industry and not-for-profit sector speakers about the actions they can take – small and large – to help in the fight against homelessness.

WA needs more diverse rental housing

The private rental market plays a vital role in helping to provide safe, affordable and accessible housing. Recently, REIWA met with Shelter WA to discuss our shared priorities of delivering a more diverse range of rental properties to accommodate WA’s changing housing needs.

Currently, the WA rental market does not adequately cater to those most at risk of homelessness, with Anglicare WA’s 2018 Rental Affordability Snapshot highlighting this issue. The snapshot found less than a quarter of rental properties in Perth are affordable for families where one parent is earning the minimum wage and the other is caring for small children, while even fewer properties are affordable to those who receive a pension or other forms of income support.

While these big, systemic issues can feel beyond the scope of any individual, there are still plenty of things landlords can do to make a difference. For example, allowing pets in the home can make a big difference to someone who is fleeing family violence and looking for a new place to rent, but is fearful of leaving their pet behind.

Victims of family violence at risk

Family violence is a key contributor to homelessness. Victims of family violence suffer significant hardships when they are forced to leave a rental home. They are at risk of homelessness, loss of employment opportunities and disruption to their children’s education. They also frequently carry the financial burden when a tenancy ends, such as paying unpaid bills they are not wholly responsible for.

Supporting these victims is just one way landlords can make a difference. REIWA recognises the role our industry plays and we are supportive of the Government’s efforts to amend the Residential Tenancies Act to better assist victims of family violence. We have been working with the Government to ensure appropriate safeguards are in place to maintain a supportive environment for property investment, while ensuring victims have better protection within the context of a residential setting.

We all have a part to play in helping those who struggle to find appropriate housing opportunities. I encourage everyone to look at the small ways they can help make a big difference to those sleeping rough on our streets this Homelessness Week.

Support WA’s homeless

If you’d like to help out those sleeping rough on our streets, please consider donating.

By doing so, you’ll be helping REIWA’s Community REInvestpartner, The Salvation Army, provide much-needed services to those in need such as meals, accommodation and crisis counselling.

Donate now

Excited and sad at the same time. How is that possible?

Simple. My son Merv and his partner Toni are leaving for a 6 Month holiday around the World.

They received a wedding invitation from a cousin in Calgary Canada several months ago and after debating about how and what to do, finally jumped at the chance to go. Lucky them as they will get to see a lot of family members that haven’t yet had the chance to visit us here in Perth.

Merv has always had the “travel bug” because up to the age of 15 years old we were globetrotters due to my husband’s work and we have lived in a few Countries.

The last time Toni and Merv travelled for 11 months and visited a lot of family so it’s great that they can do this again, especially as Merv has an online software business that does not depend on where he is. So off they go.

We planned to make a nice dinner and drop them off at the airport for a midnight flight, however luckily Mike checked the departure schedule and monitors flights (engineering man) and saw the flight was delayed til 8am the following day.

Well we made it to the airport finally and the lineup was slow moving, finally there and the travel agent who they purchased the tickets from said 30kg bags each, but the lovely checkout person… suggested they only take 23kg each…

Oh fun, well they purchased a overpriced duffel bag at the Airport (isn’t everything at the airport overpriced…) and removed 7 kg from one suitcase and another 7 from the other and lined up again.

Well they got through and we had to rush them to the gate, not enough time for a coffee…

They are off for now for 6 months and am envious of them as I too love travel.

Thankfully with all the technology like FaceTime it will be easier to keep in touch with them.

i got a photo of them in the brand new plane!

 R

 

Heathridge: Music prodigy Luis Santos on international mission to record more bassoon tunes

BASSOONIST Luis Tasso Santos and his double bass playing partner Ebony are growing tired of the same ‘old’ tune they play together.

“For double bass and bassoon duet, there’s only one piece to play for that and my partner is a double bassist so we haven’t had much music to play together,” Santos explained.

He is set to do his part to rectify that situation for musicians everywhere by taking up an international scholarship at a Dutch music academy next month, where he will commission, perform and record new music for early, baroque and classical bassoon, a Renaissance-era rackett, double bass and bassoon duet and solo bassoon works with electronics.

The 19-year-old from Heathridge said he wanted to have a greater variety of new music to play for these underrated instruments and to eventually buy his own Classical bassoon and contrabass rackett.

“The repertoire we have for these instruments is very old music, from at least 300 years ago,” he said.

Santos was the recipient of the 2018 Anniversary Scholarship from Royal Schools Music Club and received $5000 to be paid over two years for this project.

The former Trinity College student is somewhat of a music prodigy, capable of playing at least seven instruments and even conducting a 160-piece orchestra during his school years.

Before jetting off to the Conservatorium van Amsterdam with Ebony, the couple will hold a public farewell recital at St George’s College in Crawley on August 25.

Santos said he had been thinking about exploring music outside of Australia for a long time to join a larger community of musicians playing these instruments.

“If I have more bassoonists around me, I’ll be more competitive and have more people to support me,” he said.

“Netherlands as a country and Amsterdam as a city has a long history with music and arguably has one of the best contemporary music scenes.

“Hopefully I’ll be in Amsterdam for the rest of my life but if something comes up, I’ll move.”

Luis and Ebony’s Farewell Recital

When: Saturday, August 25 at 3pm

Where: Dining Hall at St George’s College, 44 Mounts Bay Road, Crawley

REIWA information!

You can now add a reiwa.comXtend campaign to your listing and the feedback from our members has been positive!

reiwa.com Xtend offers a new way of advertising in which you can add a re-marketing campaign to your listing. It will automatically create a range of adverts of your listing which will appear across thousands of different sites, getting your property back in front of people who are actively searching in your area.

How does it work?

  • Create
    We’ll create free banner ads for you based on your reiwa.com listing. If you change any information such as price, this will automatically change on the advert.
  • Match
    We’ll match your property to people who have already searched for a similar property type, price, suburb and/or local area (including surrounding suburbs)
  • Display
    We’ll follow property seekers wherever they go online and drive traffic back to your property on reiwa.com, so you can get the most out of your investment.

How do I purchase Xtend for my listing?

To purchase a reiwa.com Xtend campaign simply, add a reiwa.com Xtend package to your listing via the Manage Listings on the REIWA members’ site. When you add a new listing or choose to update an existing listing, you will see a new reiwa.com Xtend tab in Listing Wizard. Watch this quick tutorial to see how easy it is!

Your listing must be active and published on reiwa.com for the campaign to work, so make sure you check your listing expiration date. We even send a weekly email of any listings that are due to expire so keep an eye on your inbox.

More information

For more information, visit the reiwa.com Xtend page.

If you have any questions about reiwa.com Xtend, please contact your REIWA Member Engagement Team on 9380 8288 or email member.engagement@reiwa.com.au

Family gathering every Tuesday and Dining out on our Birthdays!

In our family, we make a point of meeting each other for dinner every Tuesday. This way I know I am going to see my children and their partners and family at least once a week. One home-cooked family meal every 7 days. It’s a nice simple tradition.

However on birthdays we make an exception. The birthday person picks the restaurant of their choice and we go out to celebrate on (or near) their birthday. It’s a nice way to sample new restaurants around Perth, but often we just end up at our favourites again.

June 5th is my husband’s birthday. He had been working away but arrived the day before, just in time for us to make a birthday booking. His choice was the Belgian Beer Cafe. It’s his favoutite, for the ambience, the food, and of course – the beer. I am not a beer drinker, but i tried the Cherry Kriek beer which is the most delicious – and does not taste like beer at all!

As we get older, it gets harder and harder to find the right gifts for one another. What do you get the person who has everything they need? We seem to be more interested in finding the funniest cards we can, instead. We all have a good laugh!

Do you have any special family or birthday traditions?

What condition should the property be in at settlement?

One of the most widely misunderstood elements of real estate is what condition a property should be in at settlement or possession.

What does ‘buying as inspected’ really mean?

In short, a property is sold “as inspected”. If there was dust on a ceiling fan when you first inspected before contracting to buy then the fan can be dusty at settlement. The same goes for a dirty oven, a blown light globe or a squeaky laundry door. If it was dirty, blown or squeaky at inspection before purchase then so it should be at settlement.

Buyers will typically expect that the property is handed over to them spick n’ span and thankfully most house-proud sellers leave their homes in an appropriate condition when moving out, however legally there is no obligation for them to do so.

What should you expect at settlement?

If you’re buying a home, it’s smart to have a realistic expectation of what to expect at settlement.

Unless otherwise specified in the contract, the seller is under no obligation to have the property professionally cleaned for settlement and it is surprising how few buyers ask that such a condition be included.

The seller’s only obligation under the contract (Clause 6.1(b) 2 of the General Conditions) is to “…remove from the Property, before possession, all vehicles, rubbish and chattels, other than the Property Chattels.”

Many modern contracts to purchase include provision for essential plumbing, gas and electrical components to be working at settlement. Hence, if at settlement the toilet cistern leaks then the seller ought to make good because the contract says so.

It is trickier when, for example, a telephone jack doesn’t work at settlement. It is not strictly electrical but it is probably reasonable for a buyer to assume that it was functioning at inspection. This is partly because, caveat emptor (buyer beware) has all but disappeared according to some legal practitioners. The onus is probably on the seller to disclose (in this case) that the telephone jack didn’t work.

How to ensure you’re happy with the property at settlement

My view is that buyers need to take reasonable steps to ensure the property they have bought will be presented to them in a condition they are satisfied with.

This can be achieved by either contracting with the seller to guarantee it and/or being more thorough when inspecting the property in the first instance. Ask the agent if it’s ok to turn on taps, flush loos, flick switches, open and close doors, open the oven, turn on the dishwasher and so on before making an offer to purchase.

Buyers ought to have a realistic expectation of what to expect at settlement when buying an established home and acknowledge that opinions of presentation are subjective.

If you’re unsure about what to expect, it’s a good idea to speak with the agent selling the property about your concerns.

info@reiwa.com.au