By: Staff Reporter

The Reserve Bank of Australia (RBA) has cut the official cash rate in its May board meeting today, following weaker than expected inflation data.

The Board thought it was prudent to cut the official cash rate 50 basis points to 3.75 per cent, after headline inflation turned out to be significantly lower than the RBA’s target range of two to three per cent.

The rate cut failed to surprise industry pundits, with RP Data’s Cameron Kusher stating that the economy was in serious need of a “boost”.

“We have seen a lot of softness in the economy of late. House prices are down on where they were, retail activity has slumped and headline inflation was just 1.6 per cent for the year,” he said.

“There is no doubt the economy is doing it tough at the moment and hopefully this rate cut will help ignite consumer spending once again.”

Managing Director of 1300HomeLoan John Kolenda said the 50 basis point cut was the minimum required to boost consumer and business confidence, especially as the banks were unlikely to pass on the whole cut.

“The RBA’s decision to swallow its pride today and cut the cash rate by 50 basis points will finally make people sit up and take notice that the central bank is serious about the non-mining sectors of the economy,” Mr Kolenda said.

“This is a good start but the RBA will likely need to cut rates again by 25 basis points over the coming months to really deliver the economic shock treatment the economy has been crying out for.”

Mr Kolenda said that the 50 basis point cut would deliver meaningful relief to borrowers even if banks only passed on part of the reduction due to increases in their cost of funds.

“When even former Reserve Bank governor Bernie Fraser was calling for a 50 basis point cut you know that some action was needed to get things moving again in the economy,” Mr Kolenda said.

“The retail sector is stagnant, the construction sector is stalled, and there is weaker than expected inflation so this cut was absolutely necessary but we mustn’t forget it is only the first step.”

With the RBA trimming rates, all eyes will now be on Australia’s lenders to see if they pass on the full rate cut.

ENERGY efficiency may not add greatly to the value of your home now – but in five years’ time it will.

This is the advice REISA (Real Estate Institute of South Australia) president Greg Moulton gives to those thinking of investing in water and energy-saving devices – such as solar energy and hot-water systems.

“We haven’t seen that it’s added significant value, but it will in five years,” Mr Moulton, who is also the CEO of Brock Harcourts SA, says.

“I don’t think people are paying more for an eco-friendly home at the moment. But that’s not to say people shouldn’t.

“It will become important when purchasing properties in the future.

“A very savvy buyer that’s into the environment or budget-conscious (when it comes to bills), might pay a bit more – but that’s all still in that infancy stage so it hasn’t affected the price yet.”

For the time being, Mr Moulton thinks the public is “on a steep learning curve” when it comes to understanding the true value of energy-efficient houses. Property values aside, he says there are many immediate benefits to installing devices such as solar panels and rainwater tanks at your home.

“It would be fantastic for the River Murray if people all used rainwater,” he says. “And with the way electricity bills are going through the roof, solar panels would benefit the home.”

Zen Home Energy Systems founder Richard Turner says: “The average South Australian who invests in an average 3kW solar power system should be close to breaking even on their investment within four to five years.”
WHERE TO GO FOR ECO-FRIENDLY
* Ecoplus offers: Solar PV electricity; LED lighting; plumbing service; rainwater tanks; solar pool heating and pool pumps; and solar assisted airconditioning. It also offers home energy audits.
* ZEN Home Energy Systems offers: home and business solar energy systems; and evacuated tube solar hot water systems.

Source: click here

Mid-rise apartment buildings are expected to be the first target for investors after the State Government announced sweeping CBD planning changes, including allowing buildings of 30 storeys or more with Adelaide Airport approval.

Planning Minister John Rau yesterday announced details of the long-awaited planning reform, which the Government claims will unlock hundreds of millions of dollars in investment.

The population target for the city has been increased from 47,000 people to 55,000 by 2040 and a proposed, but unfunded, tram loop has been included in future plans.

Property Council of Australia SA executive director Nathan Paine yesterday told The Advertise the new rules were unlikely to spark a growth of skyscrapers in the CBD but demand was high for quality apartments.

“The first move will be on multi-level residential or apartment blocks in the south-eastern and south-western parts of the city like Sturt ST and Pulteney St,” he said. “I think medium-rise is probably going to be the pre-dominant style of development”.

Mr Paine said many developers were attempting to maximise rentable floorspace with buildings like Tower 8, and Westpac House was unlikely to have a rival as Adelaide’s tallest building in the short-term future.

Mr Rau said the changes would promote a safer, more vibrant and populated CBD.

Opposition planning spokesman David Ridgway said the Government needed to cut taxes including land and stamp duties if it were serious about removing impediments to city living.

Building heights are limited by factors including Adelaide Airport emergency routes and council rules.

Buildings of 30 storeys or more will now be allowed in King William, Morphett, Pulteney, Grote, Wakefield, Currie and Franklin streets with approval from Adelaide Airport. They are currently limited to as little as 15 storeys.

Hindley and Gouger streets will be allowed buildings up to 15 storeys and the squares and parkland-fronting streets will be targeted for development that creates common space or includes retail and commercial outlets.

Sites larger than 1500sq m will have no mandated height restriction in a bid to encourage development.

However, they will be required to win approval from a dedicated design panel assessing their impact on nearby structures.

Last month, Mike Green, Harcourts International Managing Director, was pleased to celebrate the third anniversary of the group’s charitable arm, The Harcourts Foundation.

Established in August 2008, The Harcourts Foundation was launched with the aim of providing support that helps, grows and enriches local communities in both Australia and New Zealand.

“After asking our team in 2008 if there was a better way to invest in the communities where we work, live and play, their overwhelming response led to the launch of The Harcourts Foundation,” Mr Green said.

To date, all funds have been raised by dedicated Harcourts team members and clients in the form of fundraising events, auctions, workplace giving, individual donations or ‘off the top’ giving (a percentage calculated from each sales commission).

In just three years, The Harcourts Foundation has raised well over $1.2 million in donations, has provided funding grants for over 200 charities across Australia and New Zealand and has over 150 Harcourts offices signed up for the ‘off the top’ giving scheme.

Mr Green is incredibly proud of the way in which the Harcourts team and their clients have supported The Harcourts Foundation over the years.

“Since its establishment, the Harcourts team have accomplished some truly amazing things in order to support the Foundation – a team of riders from Harcourts Victoria and Queensland rode 1,700kms from Melbourne to the Gold Coast and raised over $70,000, a team from Harcourts Western Australia participated in the Variety Club Bash for the second year in a row, and next year, a group will tackle the Kokoda Track in Papua New Guinea!

“I’m so proud of the way the Harcourts team has embraced and supported The Harcourts Foundation. Being able to support our local communities is incredibly important to Harcourts as those communities have supported us so strongly over the years.

This month, another significant step was taken as The Harcourts Foundation was launched in South Africa at the recent Harcourts South Africa Conference in Drakenzburg. This will further develop the Foundation’s positive impact.

“It’s been great to watch The Harcourts Foundation grow and develop, but its success really comes down to our dedicated team and clients who have supported it wholeheartedly,” Mr Green said.

Source: Guide2 ]]> http://blogs.brockharcourts.com.au/blog/2011/09/05/realtor-charity-turns-three/feed/ 0 http://blogs.brockharcourts.com.au/blog/2011/07/27/welcome-to-the-new-financial-year/ http://blogs.brockharcourts.com.au/blog/2011/07/27/welcome-to-the-new-financial-year/#comments Wed, 27 Jul 2011 05:19:33 +0000 brockharcourts http://blogs.brockharcourts.com.au/?p=2355 If your last last financial year achieved your goals, congratulations! However, if it didn’t, then make sure you are in alignment with your passions. If you are not sure if you are in alignment with your passions, then do the…

Award contestants Ros Munt, Daniel Richardson and Adam Blight. Picture: David Cronin Source: AdelaideNow

Nominations have opened for the 2011 awards, which recognise high levels of service and results across 26 different categories in the real estate industry.

Real Estate Institute of SA chief executive officer Greg Troughton said that despite a flatter market over the past year, the awards prompted industry members to strive for success.

“There is no doubt that the market right across the state is flat but, in these times, award programs allow agencies to really test their practices and get an edge over the competition by being recognised in a public arena,” he said.

“REISA estimates that more than 100,000 consumers transact with our members as they buy, sell and rent property each year.

“The awards are about recognising REISA members who offer exceptional service to consumers and set a benchmark for success.”

Mr Troughton said 60 requests for nomination forms had been received within the first week and more than 150 were expected to flow in.

“Importantly, the awards break down across a wide range of specialisations and also look at the different regions, so they are relevant to both the industry and consumers,” he said.

Nominations close on August 22, with finalists announced in mid September and winners honoured on October 14 at the Entertainment Centre.

Brock Harcourts Adelaide Metropolitan Property Management operations manager Adam Blight said the tighter market had brought out the best in the industry.

“I think a market like this sorts out the stayers in the market and the peak performers,” he said.

“The ones that really perform are set way ahead of the pack.

“It adds a bit more validity to the awards, given we’ve had the market we’ve had the past 12 months.”

Mr Blight, whose team won the award for large property management office of the year at last year’s awards, said he would be nominating again this year.

“It’s a really good measuring stick to find out where you sit in the market and a really good reward to the team,” he said.

The Real Estate Institute of Australia (REIA) told its members in a recent newsletter to ensure any work-related expense deductions are in compliance with the ATO.

The REIA said agents should pay particular attention to claims for travel expenses, protective clothing, education expenses and mobile phone deductions.

In addition, agents were also warned to have correct documentation and diary evidence of computer/laptop use, hours claimed for home office use, newspaper claims and client meals and/or drinks deductions.

When claiming deductions, agents are expected to provide the ATO with records such as, paper or electronic invoices, receipts or delivery notes, credit card statements, BPAY receipt numbers and PAYG payment summaries.

“In terms of record keeping, if a claim is less than $300 you do not need to keep your receipts but you still need to be able to tell the ATO, if asked, how you worked out your claim,” REIA policy manager Jock Kreitals said.

Late last month, Tax Commissioner Michael D’Ascenzo told Real Estate Business that real estate professionals would be targeted this financial year due to the industry being considered high risk in terms of wrongfully claimed work-related expenses.

Source: http://tinyurl.com/3ulp2y7

It looks quaintly traditional, but within this house are features that even engineers find impressive. MORE PHOTOS Source: Supplied

But its most significant feature is its price: Kingsbrae, as it’s called, in Heathfield, in southeast Adelaide, is hoping to break the record for an Adelaide property of $6.5 million, set last year by a mansion in Glenelg.

The house was built by Jan and Andrew Fletcher. Jan, an animal lover, says the 25 deer are not bred for market but to keep the grass low. “They’re trouble free,” she says. “You don’t have to shear them, and they’re soft-footed (so they don’t damage the paddock). If you sold them for venison it would be lucrative. But I’m a bit of an animal freak. I don’t mind eating venison but I don’t want to be the one responsible for it.”

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The land also contains shiraz vines, which produce a few hundred litres of wine a year. The deer and the winemaking equipment are all part of the sale. There are also fruit trees and a vegetable patch.

Andrew, a civil engineer, incorporated some innovative features that help the property’s self-sufficiency. Seven kilometres of piping laid in the ground under one of the paddocks circulate water, which the earth maintains at 17 degrees, for the airconditioning system.

The self-generated power includes a silent, circular wind turbine. Most of the property’s technical equipment – aircon, C-Bus system, lighting transformers and the plumbing and cisterns – is stored in the roof, which are accessible via walkways. Andrew says even his engineering colleagues are impressed. “I don’t think there is anything like it in the world,” he says.

However, he says the view is the property’s most significant feature. “We’ve got a very unique block. There are magnificent views out of every room. And it’s all double glazed.”

The main house has four bedrooms. There is also a two- or three-bedroom cottage. For inquiries, call Sharon Reeves of Brock Harcourts Stirling on 0417 084 333.

This year’s Annual Business Property Luncheon, hosted by the Real Estate Institute of SA, was attended by a myriad of Brock Harcourts employees including CEO, Greg Moulton (see pictures attached). Jessica Watson, 2011’s Young Australian of the Year was guest speaker and shared her solo round-the-world sailing experience which was inspirational and very moving.