Buying property? Then this blog is for you!!

This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

If you would like to talk property, please contact us:
Office: 1300 911 576
Martyn Fleming: 0400 000 822
Guy Clarke: 0409 055 128
E: enquiries@morpheusproperty.com.au
W: www.morpheusproperty.com.au
_________________________________________________________________

Showing posts with label Migrants / Expats / Foreign Investors. Show all posts
Showing posts with label Migrants / Expats / Foreign Investors. Show all posts

31 May 2011

The role of a Migration Agent vs Buyer's Agent

As a Buyers Agent, we often work in partnership with Migration Agents. Despite the fact that both of us provide help to migrants, our roles are completely different.

When talking to people migrating to Australia, we are often asked about migration policy. Although we can talk about life in Australia and help potential migrants with property-related issues, advice relating to the migration process should come from a registered Migration Agent.

Despite this service becoming more popular (see table below), approximately half of all visa applicants choose to do it themselves or rely on advice from websites, family and friends.

Number of registered migration agents over the last 2 years
Source: www.immi.gov.au

Recently, I was asked how many people use a Migration Agent and for which categories of visa. Department of Immigration and Citizenship publish quarterly reports and I've included the last available report from www.immi.gov.au to illustrate which categories tend to rely on the services of a Migration Agent.

Proportion of applications lodged by registered migration agents
Source: www.immi.gov.au

For a more detailed breakdown of the July - Sept 2010 quarter figures (by individual categories of visa subclass), follow this link.

If you know of someone struggling to find a good Migration Agent, we'd be only too happy to help. Picking a credible Migration Agent is tricky and an important decision. Contact us by email and we'd be happy to help out!

Please feel free to leave comments about your experience (or your friend, family member's experience) using a Migration Agent. Feel free to leave the Migration Agent's contact details in the comments section if you think they did a really good job.

02 March 2011

The role of a Migration Agent

As a Buyers Agent, we often work in partnership with Migration Agents. Despite the fact that both of us provide help to migrants, our roles are completely different.

When talking to people migrating to Australia, we are often asked about migration policy. Although we can talk about life in Australia and help potential migrants with property-related issues, any migration advice should come from a registered Migration Agent. Approx 27% of Migration Agents hold legal practising certificates, due to the nature of migration advice the role of a Migration Agent.

Despite this service becoming more popular (see table below), approximately half of all visa applicants choose to do it themselves or rely on advice from websites, family and friends.

Number of registered migration agents over the last 2 years
Source: www.immi.gov.au

Recently, I was asked how many people use a Migration Agent and for which categories of visa. Department of Immigration and Citizenship publish quarterly reports and I've included the last available report from www.immi.gov.au to illustrate which categories tend to rely on the services of a Migration Agent.

Proportion of applications lodged by registered migration agents
Source: www.immi.gov.au

For a more detailed breakdown of the July - Sept 2010 quarter figures (by individual categories of visa subclass), follow this link.

If you know of someone struggling to find a good Migration Agent, we'd be only too happy to help. Picking a credible Migration Agent is tricky and an important decision. It's often useful to get a recommendation from someone who can attest to an agent's performance and offer greater confidence they will perform well.

Contact us by email and we'll be only too happy to talk you through your options - enquiries@morpheusproperty.com.au or call 1300 911 576.

18 November 2010

What a Morpheus Agent looks for when inspecting a property? Your home or investment property!

Outside the Building

The first thing you should do as you arrive and walk up to any property, is to look at the roof from a distance. Does it look clean, in good repair or does it look poorly maintained and in need of replacing?

Inspect Decks, Verandas and patios.

The things to watch for here are:
• The quality and condition of all timber including the balustrades
• Ensure any footings comply with building standards and do not provide access for pests or opportunity for wood rot to set-in.
• The springiness of the floor boards could indicate they are spaced too far apart or are beginning to fail.
• External flashings to roofs and windows should be regularly monitored for water resistance
• Ensure good design principles have been followed and relevant Building Codes or legislation met by having a licensed inspector perform a building and pest report.

Underfloor space

Examine the condition of all building, shed and patio slabs, paying special attention to concrete cancer, dampness and damp damage. Underfloor space should have good drainage and ventilation in order to prevent timber rot. Common defects are dry rot or broken timber members. Steel members are unaffected by age, however could be affected by chemicals or heat. Look for concrete cancer and spot damage to slabs it is found.


Car lock-ups, ports and sheds

Check at the practical size of car spaces and the storage of other equipment particularly if there isn’t a shed. Conduct the same inspection you carried out on the timber deck, on any wooden car-ports.

See if the property has a shed and how practical it is in size and layout. The point to note here is that if the property lacks a shed or other appropriate storage then more than likely all that stuff that normally goes into a shed is going to end up in your garage. And this could mean that eventually your car ends up in the driveway or worse still, on the road.


Roofing - The wind and rain

The thing to watch for here are the quality of fixings for the battens and roofing, affixing roofing material to battens requires a special type of screw fixed in a particular way. If it is a tile roof, then the condition of the tiles, ridge cappings and points are the important issue.

Look for evidence of poor maintenance or damage to the roof, with the aim being to make sure that all water drains to storm water mains, road kerb and channel and rubble pits without damage to the building or nuisance to neighbours.

Looking at the quality and maintenance of guttering and drainage which if done properly will prevent water entering the house. Roofing should be bird and possum-proof.


Sewerage, drainage, guttering and roof plumbing

The main issues to look for in this area are the adequacy of the piping in place and how well has it been maintained? A coat of paint can hide a multitude of sins, so don’t confine your inspection to just how it looks. Scratch the surface and see what is revealed.

The number and capacity of down-pipes should reflect the size of the roof area. Make sure gutters are clear of leaves and branches. Ask questions about the sewerage and water pipes and see if there have been any tree root problems. If they exist, they should tell you about any material facts that affect the property.

Check any tanks are properly installed and whether they are gravity fed or serviced by an appropriately sized pump.

Electrical installations

The first point to be made is that ALL electrical work must be carried out by a licensed Electrician. Some points of note to make are that electrical items like air-conditioners are well maintained and clean.

Smoke detectors should be installed in all homes, regardless of their age or whether they are timber or brick construction. Double check all electrical leads, plugs and external equipment such as pool pumps. Outside electrical items can be damaged by wind, rain and constant exposure to the sun.

Check all outside lights and power points are well maintained and in working order.


Gas supply and bottled gas

The connection point of the gas supply to the house can suffer rust and other connection problems. Check bottles and gas fixtures & fittings for leaks and ensure that pipes supplying underground gas are not rusting, particularly at ground level.

All plumbing and gas work should be carried out by a licensed plumber and gasfitter.

House Interior

Bathrooms / En-suite

check all wet areas for adequate water resistant sealing. The cistern and pan should be checked for cracking, leaking and stability. Check the floor for cracking and if concerned in any way use water to test the gradient water flow. If the underfloor to the wet areas can be accessed, check the underfloor for water staining and damage.

Make sure the ensuite has good lighting and sufficient natural or mechanical ventilation. Check the operation of the taps and wash basin.

Kitchen
Things to look for? Check to see if:
• the location of kitchen appliances isn’t concealing any defects.
• The kitchen bench-tops for lifting laminate or water damage.
• The sink taps for water flow, leaking, dripping and water hammer.
• Tiled areas should be checked for loose or cracked tiles or defective grouting and sealant.
• Poor quality construction material isn’t hiding behind bench surfaces. Standard grade chipboard will be quickly ruined by any contact with moisture.
• Make sure all fixture appliances are in working order, including those often forgotten ones such as insinkerators etc …


Laundry

Check the gradient of the floor and how well it drains to the floor waste. Ensure taps operate well and check water flow; leaking; dripping and water hammer. Tiled floors should be examined for loose or cracked tiles and defective grout or sealant. Adequate ventilation is required, either natural or mechanical.

Check behind appliances for damage to walls, floors and to appliances themselves. Full waterproofing around wet areas will help prevent damage by water entering the timber.


Internal roof framing

This inspection should be conducted by a licenced professional because you will have to get up into the roof cavity and know what you are looking for. Your professional should look for bowing and broken timbers. The position and condition of all internal bracing, which will affect the structural capacity of the roof. Roof battens may also be damaged, if there are excessive loads. This inspection should reveal any water leaking or damage from broken or displaced roofing tiles, lifting roofing materials or poorly secured sheeting.


Stairs

Check stairs to ensure stringers, hand rails, posts, treads and risers have not been damaged by rot or rust. Be aware that patches and paintwork can hide defects. Any movement will need to be repaired, as a moving tread or balustrade may gain increased momentum and fail without warning. For external stairs, good protective coatings and weather-proofing will help prevent damage and failure.


Ceilings

Check the ceiling plaster for any evidence of sagging, nails popping, defective lining and surface cracks. Dampness often indicates roofing defects. In cases of severe water penetration, inspect the ceiling joists closely. Heat and humidity coupled with water near the timber, creates an ideal atmosphere for wet rot. Examine the plaster around cornices for looseness or cracking which may indicate structural defects. If in doubt get a licensed professional to make further investigations.


Kitchen, bathroom and laundry Cabinets, Appliances & Fittings

Check all permanently fixed cabinets and appliances in wet and high traffic areas, as they can hide defects under or behind them. All vanities, cupboards and storage systems should be checked for damage to doors and drawers.

Check Vacuum Systems for effectiveness and checked for blockages.

Floors, doors and windows

Floors

All floor types including concrete floors should be checked for cracking and even levels.

Wooden floored areas should be checked for springy and squeaky boards, rot, out-of-level boards, dampness and damp damage. Serious problems can occur where ground floor joists are poorly ventilated, so make sure you inspect sub-floor areas if possible.


Doors

Blemishes on the surface of newly painted areas may conceal corroded frames. Damaged doors are usually easy to detect / notice. Ensure doors and windows operate smoothly. All timber exterior doors are likely to absorb rainwater, as they are rarely painted there. Look for signs of blistering paint or varnish down around the bottom. In some cases the timber swells to prevent proper operation.

Windows

Check for adequate window flashing around mouldings and sills. Any water staining, peeling or loose paint could be indicative of more extensive damage. If a window frame is soft and easily penetrated, it could lead to rotting frames. External surfaces need to be maintained with waterproof flashings and coverings (paint, oils or varnish) so check for evidence of this maintenance.

Housing Build types

Brick & Brick Veneer

Ensure the weep holes in external brick walls are clear of debris. Ensure weep holes under windows and above the Damp Proof Course are visible. Check for dampness and damp damage. Ensure method of water proofing does not create more problems than it solves. A common problem is foundations failure and mortar build up within cavities.

Also look for the tell-tale mud tracks of pest infestation on external surfaces. Garden beds and timber products directly adjacent to the slab and external building walls are danger signs that should be investigated to their fullest extent.

Timber

Paint can be used to cover defects and the use of matte finish paints can be used to hide fresh paint work. Check for water damage and damage due to exposure to the elements. Ensure that house cladding is not covering up defective boards. Check timber stud wall frames for damage.

All timber boards should be examined for rot and pest damage. If there is superficial damage, then determine the cause and extent of the damage. White ant investigation should be done by a licensed Pest Inspector with attention paid to the presence of both physical and chemical barriers. Inspection of garden beds and loose timber or timber products against the structure of the house may reveal white ants or other pest’s problems covered.

Steel

Weathering steels may appear to have good structural adequacy but should be checked very closely. If in any doubt, seek professional advice from a structural engineer or master builder.


Yours in property
Morpheus Property


This article is for the general use of Morpheus Property, its clients. Neither Morpheus Property Group Pty Ltd nor any of their officers or employees gives any warranties nor accepts any liability for any decision with respect to investment or non investment, sale or purchase of property which is made as a consequence of the use of this article.

Morpheus Property Group Pty Ltd believes the statements, information and recommendations contained herein to be correct and not misleading but give no warranty in relation thereto and expressly disclaims any liability for any loss or damage which may arise from any person acting or deciding not to act partly or wholly on the basis of any such statements, information and recommendations.

09 July 2010

Let's talk about Negotiation


"When negotiating a property deal Knowledge is Power!"


Negotiation

Negotiation is an art, not a science. The art of negotiation is not win-at-all-costs. It is about negotiating a contract where the seller can feel like they are winning in the deal. Remember if the seller has taken the trouble to list their property then they are motivated to sell (some more than others).

One of the keys to property negotiation is not becoming emotional about the transaction. It is only when you are able to walk away from a deal that you truly begin to negotiate, otherwise all you are doing is haggling over the list price.

We have a list of 19 questions we ask every agent about each property, which researches the seller’s position and also acts to reduce price expectation. Some examples of these are:

1. How long has the property been on the market?
2. Why are they selling?
3. Who came up with the list price? How was that price reached?

The fatal traps of negotiation

At Morpheus Property we have experienced many different negotiation styles, techniques and situations. We would like to share some of the pitfalls of negotiation.

1. Poor or no planning - This has to be the biggest failing of many negotiators and the major reason for not achieving the best outcome. Take time to develop a plan of attack.

2. Don’t talk too much - One of the overlooked talents in negotiation is the ability to “shut-up”. If you remain calm and listen more, you will be amazed at what you will learn and achieve.

3. Negotiating verbally - A written offer shows you mean business. It will also give the sales agent better ammunition to convince the seller that this is your best offer. Always put a sunset clause on any written offer. Making the offer for a limited time will encourage the need for action.

4. Not following your gut instinct - This doesn’t mean following the first reaction that comes to your mind. However you do need to develop a gut instinct for the situation. Gather as much data and information about a property deal and then let it have time to ferment. Listen to your gut instinct but only after you have told your gut all it needs to know.

5. Take no prisoners approach - Coming in hard and fast will rarely deliver the “best deal”. Take your time and build rapport. Find out as much as you can about the seller and the property. Steady as she goes will win the day!

6. Don’t aim too LOW - Be careful what you ask for, you might just get it. Fortune favours the brave and much of negotiation is having the guts to ask for something.

Yours in property
The Morpheus Guy's

06 February 2010

CM Article - 2 good reasons to use a Buyer's Agent

There are two main points we can learn from this promotional article in the Courier Mail today.

1. Loose lips sink ships!
Be careful how much information you share with the agent (and / or the owner). The extra $200k mentioned could have been avoided if the investor were more tight-lipped about his intended purpose for the property. Your Buyer's Agent will ensure your information (especially the information detrimental to your bargaining position) will remain confidential.

2. Get "Savvy"!!
When buying in an unfamiliar area, there are dangers in failing to understand two critical elements:
* the market: Not only for interstate and overseas buyers, but also anyone who doesn't feel like doing the research necessary to ensure they're buying good value property without paying the 'ingorance' premium.
* regulations: Operating in a different state or country may present hidden traps without first seeking competent advice. Each country differs with duties, taxes, laws relating to finance, etc.
Your Buyer's Agent will ensure you're well informed of the applicable laws relating to your property purchase.

Solution: Get a Buyer's Agent to help you buy your property for the right price!!

Call us on 1300 911 576.

13 June 2009

LAST DAY Sunday 14 June - Brisbane HOME BUYERS SHOW - Limited FREE tickets left!


HOME BUYER SHOW - last day Sunday 14th June 2009

Brisbane Exhibition Centre – Southbank
Saturday 13th June & Sunday 14th June 2009

We want you to attend the Brisbane HOME BUYER SHOW as a friend of Morpheus Property and pay only $5.00 per adult entry instead of the gate admission price of $15.00 per adult.

OR you can contact me as I have only 6 Complimentary tickets left. We can arrange to meet at the show - call me on 0409 055 128.

Feel free to pass this offer on to any family, friends, clients or colleagues you think may be interested in attending the Brisbane HOME BUYER SHOW!

Go to https://secure.tradevent.com.au/homebuyers2009/ book and buy your $5 ticket online using the promotional code – MORPHEUS

We would also love you to subscribe to our newsletter or follow our Blog. Look at the Panel on the right of this page for more information...----->>>>>>>>>

All the Morpheus Crew hope to see you there at the Home Buyer Show this weekend!

01 June 2009

LET's MEET AT THE BRISBANE HOME BUYER SHOW!


Just wanted to touch base about
the upcoming Home Buyer Show
and the Morpheus Property Newsletter.


HOME BUYER SHOW
Brisbane Exhibition Centre – Southbank
Saturday 13th June & Sunday 14th June 2009

We want you to attend the Brisbane HOME BUYER SHOW as a friend of Morpheus Property and pay only $5.00 per adult entry instead of the gate admission price of $15.00 per adult.

Feel free to pass this offer on to any family, friends, clients or colleagues you think may be interested in attending the Brisbane HOME BUYER SHOW!

Ticketing Information
Avoid the queues and take advantage of the $5.00 ticket for bookings made in advance with the online MORPHEUS code. Once you have purchased your ticket, entry to all the seminars is free of charge. Seats are allocated on a first-come-first-served basis so we advise you arrive early to avoid disappointment.

Ticket Prices:
Adults
$15 for tickets purchased at the door

$5.00 for tickets purchased in advance online using the promotional code MORPHEUS (save $10 per entry)

Concessions
$12 for tickets purchased at the door

Children
Entry for children under 16 years of age is free when accompanied by an adult.

Go to
https://secure.tradevent.com.au/homebuyers2009/ book and buy your ticket online using the promotional code – MORPHEUS

We would also love you to subscribe to our newsletter or follow our Blog. Look at the Panel on the right of this page for more information...----->>>>>>>>>

I hope you find this information useful! Have a great week!

WANT A STAND AT THE UPCOMING HOMEBUYER SHOW?


AN OFFER FROM THE MANAGEMENT
of
THE HOME BUYER SHOW
&
MORPHEUS PROPERTY TO YOU!





HOME BUYER SHOW
Brisbane Exhibition Centre – Southbank
Saturday 13th June & Sunday 14th June 2009

Were you thinking about having a booth at the HOME BUYER SHOW? IF YOU HURRY IT WON’T BE TOO LATE!

Morpheus Property is supporting the upcoming Home Buyer Show at the Brisbane Exhibition Centre on Saturday 13 and Sunday 14 June 2009. By participating in the Home Buyer Show your company will obtain direct contact with literally thousands of buyers in just two days. Stand packages starting from just $900 +GST.

It is also a unique opportunity to reach all those visitors who will be attending the show to secure their FHOB entitlements. The Hon. Tanya Plibersek MP Federal Minister for Housing is opening the show and presenting a seminar program that is sure to attract a large audience.

With a limited number of exhibitor stands still available, we encourage you to grasp this opportunity and take advantage of the special rate and benefits Morpheus Property negotiated on behalf of our partners and colleagues.

As a Morpheus Property Associate, when booking space you will receive a 20% discount plus a host of other promotional benefits – see details attached. You’ll have to hurry as bookings for the Brisbane Show close soon!

You don’t need a big marketing budget or lots or staff resources to participate – this walk-up package makes exhibiting easy and is incredibly cost-effective! Make sure you tell them Morpheus sent you, so that you get your discount!

If you would like a copy of the Brisbane Show Prospectus let me know and I will email it to you! To book space now or discuss the opportunity further, please contact Rebecca
rebecca@eventmi.com.au or Tom tom@eventmi.com.au on 1300 889 655.



Yours in Property




1300 911 576

06 April 2009

13th May - Sabona networking breakfast in Toowong!!


Calling all South Africans in the greater Brisbane area!!
Date:
Wednesday, May 13, 2009
Time:
7:00am - 8:30am
Location:
Toowong Coffee Club
Street:
Cnr Jephson St & Sherwood Rd
City/Town:
Toowong, Australia

Phone:
0400 793 550
Email:

Description

Sabona events are a great way of expanding your networks and helping fellow South Africans get ahead in Australia.

Morpheus Property is pleased to announce a new meeting time and venue in Toowong, hosted by Mel Pope.

Please RSVP to Mel:

Ph: (07) 3117 6100
Mb: 0400 793 550
E: popem@stgeorge.com.au

03 February 2009

RBA cuts Interest rates by 100 basis points

Westpac is the first big bank to pass on today's Reserve Bank rate cut, reducing its key rate by the full 100 basis points.

The Reserve has slashed the official interest rate by 100 basis points, potentially saving the average homeowner $186 a month.It is the fifth time in a row the central bank has cut rates since September.

Wayne Swan said other banks should follow Westpac's lead. This is likely to cause a very immediate and profound impact on the home-owner segment of the market.

Morpheus advice: Move quickly and secure your slice of property before the price hike (particularly in the lower to median price range).

Yours in property!

17 December 2008

Extract from latest Westpac update issued today!

The Reserve Bank Board is scheduled to meet again on February 3. With some market and media speculation that it may hold an unscheduled meeting in January the Minutes of the December Board meeting were at pains to emphasise that the substantial 1% cut in the cash rate on December 2 was partly in anticipation that no further action could be expected until february. With official rates only now moving below the neutral level we expect that the Bank has substantially more work to do. Markets are pricing in as much as 100 basis point cut for February.

We expect the Bank may be a little more measured now that rates are below neutral but given the Bank's actions so far we cannot easily dismiss prospects for a larger cut than our preferred view of 50 basis points. The most important issue is how low rates will eventually go. We expect that the RBA's cash rate will bottom out at around 2.75% by the June quarter.

Bill Evans, Chief Economist, Westpac Bank

16 December 2008

Housing starts fell for the third consecutive quarter in September 2008

Numbers of New-starts for housing builds was down again in the September Quarter of 2008. Alot of people may say, so what! its a buyers market we don't need any additional new stock on the market as it will just sit there unsold. Unfortunatley the large reduction in new housing starts in september and in fact for the third quarter in a row will have a signifacantly impact on the housing market in Brisbane.

Demand for housing is high and rising in Queensland in line with the continued population growth in the great South East. Decreased new housing is not good for those looking to find a home whether they be renting or buying.

HIA’s Chief Economist, Harley Dale said that housing starts fell by nearly 11 per cent in the September 2008 quarter. At a level of 35,425 for the quarter, starts hit their lowest level since the GST-induced weakness seen in 2001. (Source: HIA)

According to Australian Bureau of Statistics figures released today, detached house starts fell by 11 per cent to 24,130. Multi-unit starts dropped by 8.8 per cent to 11,070. "The annual level of housing starts is running at 141,700 and will drop well below the 140,000 mark in the December quarter," Harley Dale said. (Source: HIA)

According to the HIA ... The weakness in seasonally adjusted housing starts in the September 2008 quarter was concentrated in New South Wales (down 25.1 per cent), Queensland (down 22.7 per cent), and Western Australia (down 20.5 per cent).

With occupancy rates already hitting extraordinary lows in Brisbane, this will result in just more pressure on the rental market, resulting in more pain for renters and price pressure on existing housing stock in 2008-09.

Now is the time to buy!

Yours in property

12 December 2008

Residential Market Update

The current Residential Market
is characterised by the following

* Good market conditions for buying property!
* Little competition - For now!
* Falling interest rates, currently sitting at a cash rate of 4.25%
with reductions in January and February 2009 being forecast as likely
* Improving affordability sitting at 2004 affordability levels
* Good amount of stock to choose from

Can you afford to act?

Can you afford NOT to act now!

Yours in property

07 December 2008

What does the future hold - one perspective from Chris Zappone of the Sydney Morning Herald


The Reserve Bank has slashed its key interest rate by more than expected in its latest effort to prevent Australia's economy from sliding into a recession.

The central bank lopped a full percentage point, or 100 basis points, off its key cash rate, reducing it to 4.25%. That level matches its previous record low - reached in the wake of the 9/11 terrorist attacks in the US in 2001 - since the RBA began targeting rates about two decades ago.

The Commonwealth Bank and the National Australia Bank led commercial lenders in responding to today's reduction, passing on the 100 basis-point cut in full to customers. Westpac, though, lowered its standard loan rate by only 80 basis points, to 6.91%.

The RBA cut marks four months in a row of reductions, as the central bank tries to shield the domestic economy for a global slowdown. A consensus of twenty economists surveyed by Bloomberg predicted the RBA would lower rates today by 75 basis points.

''It's good they've decided to move as aggressively as 100 basis points,'' said economist Stephen Halmarick of Citi. ''It just shows there is continued concern that the global economic outlook is very uncertain.''

There is already some evidence that lower interest rates are attracting people back into the housing market, said Mr Halmarick.

But he welcomed the RBA's move, because ''the headwinds coming from the global economy are getting worse and worse.''

The Aussie dollar was little changed after the rate news, buying about 63.75 US cents in recent trading. Shares are trading lower after the RBA decision with the main indexes recently down 3.2% for the day.

Mortgage savings

For a typical 25-year, $300,000 home loan, today's cut if passed on in full by lenders will save borrowers about $193 a month in payments or $58,000 over the life of the loan.
Treasurer Wayne Swan urged the other major banks to pass on the RBA's cut in full.
''This is a vital rate cut...delivered at a time when all our joint efforts are directed towards strengthening the economy and protecting Australian jobs,'' Mr Swan told Parliament. ''For these reasons the government does expect the banks to pass this on in full.''

All up, the central bank has chopped three full percentage points from the key rate since September, when concerns about a recession began to overshadow inflation concerns.
The RBA moves come a day ahead of the release of economic growth figures for the September quarter. Economists are tipping a growth pace of 1.8%-1.9% from the same quarter a year ago.


Markets remain 'fragile'

RBA Governor Glenn Stevens said that while Australia's economy had been more resilient than other advanced economies ''recent data nonetheless indicate that a significant moderation in demand and activity has been occurring.''

Some analysts predict the RBA's cash rate will fall to 2.5% by mid-2009, effectively reducing the interest rate by two-thirds within a year.

''Recent actions by governments and central banks to stabilise their respective financial systems have begun to take effect,'' he said in a statement. ''Nonetheless, financial market sentiment remains fragile, as evidence accumulates of weak economic conditions in the major countries and a significant slowing in many emerging countries. Commodity prices have fallen further.''

Inflation threat recedes

One result of the global slowdown is the threat of inflation has all but evaporated, giving central banks everywhere room to take an axe to official interest rates. The downside is that demand is also disappearing.

''With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term,'' Mr Stevens said. ''With that outlook, and with capacity pressures now easing, it is likely that inflation in Australia will soon start to fall.''

'Measured approach'

The language of Mr Stevens' statement signals that the RBA has "shifted to taking a more measured approach," said Westpac economist Matthew Hassan. "They brought them down to an explicitly expansionary level. And that part of the task is done."

"Now it’s a case of judging how much traction they’re getting (from the measures) to offset the weakness from abroad," he said. "Now they must judge how much traction they are getting."

"They haven’t ruled anything out with that statement," Mr Hassan said. "But they have highlighted that for additional moves we have to have some reason to believe the slowdown in Australia is more pronounced than other recessions."

A monthly survey of inflation by TD Securities out yesterday indicated prices had fallen in both October and November. Other economic data out today gave a mixed picture. Retail sales for October rose by a more than expected 0.7%, seasonally adjusted, and 0.2% in trend terms for the month. On the trade front, however, the deficit narrowed by less than expected, indicating slowing global demand is already eroding demand for exports.

Source - Sydney Morning Herald December 2, 2008 Publication

Yours in property

04 November 2008

STOP THE PRESSES

RBA REDUCES INTEREST RATES
DOWN 0.75% to a Cash Rate of 5.25%

Bad times in property markets are great times to buy property! While most home-buyers and investors have sat on their hands waiting for something to happen, even if they weren't quite sure what it was they were waiting to happen. The housing market in Australia is being driven by sentiment that doesn't match the underlying economic fundamentals of the Australian ecomnomy and the housing market, and is looking more to the property markets of the US.

This has deterred new and old buyers alike, but this stalemate can't last with a distinct lack of suitable housing to meet demand, vacancy rates low, money becoming cheaper and the huge incentives for first home buyers. Housing prices will stabilise and now is a great time to buy at or near the bottom of the market cycle.

With interest rates falling, the population in SE Queensland rising and a lack of housing supply, property is still an excellent investment. The masses tend to buy when prices are high and sell in the tough times when they are low. Smart property investors work counter to the cycle, buying low and selling high are capitalising on others' mistakes.

In order to maximise the rewards from your property purchase, whether it be your own home, a business premise or an investment property, talk to a Morpheus Property Agent and get the expert's advice.

Call on 1300 727 586 or email us at enquiries@morpheusproperty.com.au

Yours in property

29 October 2008

The Qld Law Society (QLS) has this week recommended for law society members to bring to the attention of their clients the following ‘Fraud Alert’.

There are bogus emails doing the rounds purporting to be from a Lawyer called 'Catanese Palacios' from a UK-based law firm called 'Baur and Associates'. This email then seeks to obtain personal identification information from the property seller in Queensland:

QLS has advised that the law firm 'Baur and Associates', and/or the practitioner 'Catanese Palacios' DO NOT exist and cannot be identified by the UK Law Society. Individuals and businesses operating in the property market should take note and always be aware of new scams and fraud related matters.

Effective due diligence processes and skills are paramount and a cautious approach should be taken with all matters to minimise fraud / scam exposure. Our Legal Partners work to give our clients options, to keep them informed on their rights and obligations, and to advise them on the full scope of solutions to ensure our clients are fully equipped to make the best business decisions and to protect their investment and commercial interests.

Should you have any questions with respect to your due diligence processes and fraud protection, please call Morpheus Property on 1300 727 586.

Yours in Property

20 October 2008

Expats set to boost property market

My business partner (Martyn Fleming) and I are seeing strong interest from Expat Australians looking to flee the global financial crisis.

Our Finance Broker Networks are reporting an increase in enquiries for finance from expatriates. Some of our network have told us that the demand as increased so much that they now have dedicated brokers dealing with the level of demand.

Martyn and I think this makes sense right now especially in response to the recent home mortgage rate cuts in Australia and the federal government's $10.4 billion economic package. Also the big drop in the Australian dollar is big advantage to expats.

The Property Market in Australia has been resilient this year, despite the impact of a volatile world economy. While there is no question that the underlying residential real estate market in Australia has slowed in the past 12 months, we haven't seen any negative growth in Queensland because the demand for rental and home ownership is still stong. Certainly the brokers we know are saying that volume of inquiries about home loan finance is remaining solid.

The interesting trend is the clear majority of people are inquiring about new finance, not just those struggling and seeking refinance. Marty and I put this down to a tough rental market in most capital cities being the primary force pushing first home buyers to seek home loans. Who wouldn't want to escape the rental trap by buying?

Yours in Property

09 October 2008

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19 September 2008

Hybrid trusts under the spotlight


Morpheus Property asks what will the latest Taxpayer Alert from the Tax Office about the “uncommercial use” of hybrid trusts mean for property investors who use this structure?

In March 2008 the Australian Tax Office (ATO) released Taxpayer Alert (TA) 2008/3 which detailed its concerns about the use of some hybrid trusts.

It refers to the “uncommercial” use of certain trusts and describes:

"a non-arm’s length arrangement under which a taxpayer uses borrowed funds to acquire an interest, such as units, in a certain type of trust, which uses the funds to purchase income producing property. The arrangement seeks to provide income tax deductions to the taxpayer for all of their interest payments and their borrowing costs. The arrangement does not provide a sufficient connection between the expenditure and production of future income and/or capital gains, which may be distributed to other beneficiaries of the trust, who may have a lower tax rate”.

Always get Professional Taxation advice from a qualified Tax Accountant before deciding on any asset structure. Once you have purchased in a particular structure it can be very expensive and have grave unintended tax consequences if you want to change those structures.

Yours in Property