Home Ownership becoming more difficult for Gen Y

To all our readers, I hope you have enjoyed a Merry Christmas with family and friends.

I have recently read an article that points to difficult times ahead for Gen Y in being able to purchase a home of their own. Gen Y is often considered to be people born between the late 1970's and 1992.

The article published in the Daily Telegraph can be read here.......click link below
http://www.news.com.au/money/property/home-ownership-difficult-for-gen-y/story-e6frfmd0-1225812581808?from=public_rss

The article makes particlur reference to the fact that Gen Y's are failing the lenders job stability test and that 1 in 10 mortgage applications are being knocked back by the Banks. The article goes on to say "while it is not impossible for job hopping Gen Yers to get a loan, it is certyainly more difficult".

Given that the Banks are slowly tightening their lending criteria it is only going to get tougher to get a loan in the future. The Solicitors Property Centre have developed a Home Ownership Program for tenants who would love to own their own home. The Program is designed to help a tenant make the transition to home ownership with full guidance and support from a team of property lawyers that will "hold your hand" through the process.

For a free complimentary discussion to see whether the Home Ownership Program will suit your situation, contact Dean Carver at Solicitors Property Centre on (02) 9773 4550

Contact
Dean Carver
Solicitor
http://www.spc.net.au/

Please note that all comments are the opinion only of Dean Carver, and readers should obtain their own independent legal and financial advice that applies to their particular situation. 

Reserve Bank Increases interest rates

The Reserve Bank has increased its cash rate from 3.25% to 3.5%. Most major Banks have lifted their varaiable rates inline with the Reserve Banks decision to increase rates.

Federal Treasurer has indicated that interest rates will not stay low forever.

The rise in interest rates can only have a dampening effect on the real estate market. However, that said, I can only see the housing prices fall when supply is increased. Housing prices will start to fall, if and when, the Governments decide to release land for development and developers and builders start to come back into the market.

The Banks have started to tighten their lending criteria and this will make it difficult for homebuyers to obtain a home loan unless buyers have a significant deposit.

For more commentary on the interest rate rise.....see link below
http://www.news.com.au/business/money/story/0,28323,26299332-5016110,00.html

Opinion by Dean Carver
Property Lawyer - Solicitors Property Centre

REMINDER to Buyers - First Home Owners Boost will halve after 30 September 2009

Just a general reminder that the current First Home Owners Boost of $7,000 will halve from $7,000 to $3,500 after 30 September 2009.

If you are a first home buyer and eligible for the Commonwealth First Home Owners Grant, that means the total Grant will be reduced from $14,000 to $10,500 for established homes.

For more information you can check out the NSW Governments Home Buyers websire. See link below

 http://www.homebuyer.nsw.gov.au/first_home_benefits.html

Also see the NSW Office of State Revenue website - http://www.osr.nsw.gov.au/

Best wishes

Dean Carver
Solicitor
Solicitors Property Centre - Sydney

How the Internet is reshaping Australian Real Estate

Nielsen Online have released a report that explores the way in which Australians search for and research real estate. The findings reveal that 87% of property buyers head to the internet to search for and support their research process and a similar proportion of renters (85%) do the same.

To read the News Release by Nielsen Online .... click below

www.nielsen-online.com/pr/pr_071108_AU.pdf

Dean Carver
Solicitor

Daffodil Day

Friday 28 August 2009 - Just a reminder that today is Daffodil Day which is organised by the Cancer Council. On this Day, the Cancer Council raises vital funds for research, education and support services for all people affected by Cancer. Maybe one day we will have a cancer free future.

For further information.....check out the following link
http://www.daffodilday.com.au/Home.htm

Best wishes to the Cancer Council and keep up the fight.....

Dean Carver
Solicitors Property Centre

NSW Government Home Buyers website....NEW

The NSW Government has launched a website that details all the benefits available when you purchase real estate in NSW. The site provides all the information including First Home Grants, benefits for investors, benefits when buying a newly constructed property and also provides links for fact sheets for each type of benefit.

If you are interested in buying property in NSW check out the NSW Government website at

http://www.homebuyer.nsw.gov.au/default.html

If you would like further details on how to apply or would like legal advice regarding a purchase, i can be contacted on the number below.

Dean Carver - Property Lawyer
Solicitors Property Centre
Ph: (02) 9773 4550
www.spc.net.au

Google Maps - New search facility

Google have launched a new service for buyers to search for real estate using Google maps. The search facility allows a buyer to find property using the maps functionality.

For our clients we have access to list properties directly with Google......creating more exposure for your property.

For more information about uploading your property, contact me at the office or by email and I can help you in that regard.

See Google Real Estate in Australia.....click below
http://maps.google.com.au/help/maps/realestate/

Dean Carver, Solicitor
Solicitors Property Centre
Ph: (02) 9773 4550
http://www.spc.net.au/

The Importance of using quality Building/Pest Inspectors

When buying real estate, it is so important to obtain a Pest and Building Report from a reputable Company that has sufficeint experience in the field of building and pest control.

Cost is not the only factor to consider when obtaining a report.

It is also recommended for prospective buyers to be present at the time the inspection is carried out by the Inspector so that any areas of concern can be addressed in the report.

A recent story by Today Tonight on 23 July 2009 is attached below

http://au.todaytonight.yahoo.com/article/5746668/general/termite-damage

You should consult a Solicitor prior to considering a purchase.

Comments by Dean Carver, Solicitor at the Solicitors Property Centre

Keeping pets in a strata complex

Over the years, I have had many clients ask me whether they can keep pets in their Unit, Villa, Townhouse or any other strata complex. This is sometimes a very emotional issue for buyers looking to purchase, especially first home buyers.

Just because there may be other pets in the complex, does not necessarily mean that you can keep a pet. The Body Corporate still needs to assess your individual application.

The answer to whether pets can be kept on a strata property depends on the by-laws passed or adopted by the Body Corporate. For buyers, these by-laws can be found in the purchase contract or if the model rules are adopted, they can be found in the legislation.

I have found a useful reference published by the Young Lawyers (a Division of the Law Society) titled "Keeping pets in strata schemes....Your questions answered" You can click the link below to see the guide.

http://www.lawsociety.com.au/uploads/filelibrary/1093240954343_0.1210455815147537.pdf

If you are looking to buy a strata property and you wish to keep a pet, I would definitely raise this issue with your Solicitor at the time of considering the contract to purchase.

This opinion provided by Dean Carver - Solicitor at the Solicitors Property Centre, Sydney
www.spc.net.au

Buying a property......the importance of research

Buying real estate is usually one of the biggest investment decisions that a person will need to make. It is so important that a buyer carries out as much research as they can to ensure that the purchase is will fit their requirements.

I would consider that the following are crucial to any purchase decision:

• Comparable Sales Reports - These are the type of reports that detail the recent sales in an area or postcode. The Reports normally cover a period of 12 months but can be tailor ordered for your requirements. As a buyer, it is valuable to know what comparable properties in the area are selling for. For examlple, if you were considering a purchase of a unit in a complex of units, it would be beneficial to know what price the same size units in the complex have sold for.
• Pest and Building Reports - This goes without saying. If you are buying a property, particularly a house, you should order a Pest and Building Report, regardless of the age of the property
• Strata Report - If you are buying a strata unit, then a Strata Report is a must. This report details the information on the Body Corporate, such as whether the insurances are up to date, what are the kevies, does the Body Corporate have sufficient money in the funds, have their been any claims by owners, is there noise issues, any building defect claims etc.
• Visit the Council - A visit to the Council to discuss the property with a Council Officer can be beneficial to determine further development or current approvals to neighbouring properties
• Attend Auctions in the area
• Look at as many properties in the area that you can, but these properties should be comparable in nature, price and size, to the property that you are looking for.
• Once you have narrowed down the selection, you need to also visit the property at night to check the surroundings of the property after work hours, when neighbours are home
• Is the sewer available? Particularly important for country areas. Main Council sewer or septic?
• The availability of public transport. Is the train, bus or light rail close by?
• The proximity of schools and shops
• Is bore water available?
• By-Laws - Check the by laws of a strata complex. Are animals permitted?

The above list is by no means a complete list. You should check with your local Solicitor at the time of purchase for any further thoughts or advice as may apply to your particulare property.

For the benefit of buyers, please provide any additional thoughts or checks that may be applicable.

Opinion of Dean Carver - Solicitor and Real Estate Licensee at Solicitors Property Centre

Mortgage Registration fees set to rise......

The NSW Department of Lands has again increased the registration fees for a number of dealings. From 1 July 2009, property owners will have to pay increased registration fees. The increases will affect purchasers and vendors alike.

The Increases will affect numerous dealings with the Lands Departments. Among the main dealing forms affected are::

• Mortgages - Mortgage registration fees have increased to $95.00
• Transfers - Transfer fees have increased to $190.00
• Discharge of Mortgage - registration fees increased to $95.00

The increases will affect all documents lodged after 1 July 2009.

The NSW Government has effectively increased the transfer registration fee from $92.00 (as at 31 December 2008) to $190.00 effective 1 July 2009. This is an increase of 106% in just over 6 months.

Where is the resistance from the Liberal Opposition Leader? Who is protecting the property owners in NSW?

No doubt all the increased fees will be disclosed by the Banks at the time of issue of loan and Mortgage documentation. Borrowers need to be aware of the changes and the amounts that will be deducted from their accounts at settlement.

For further information regarding the increases, see the Department of Lands Circular - http://www.lands.nsw.gov.au/_media/lands/pdf/lpi_circulars/2009/2009-07_LPI_Fee_Changes_from_1_July_2009.pdf

Posted by Dean Carver - Solicitor at the Solicitors Property Centre