Greetings from BPS,
Hope you are all snug around your heaters as we are in the middle of
a fairly cold winter. It is always this time of year that I wish I had
installed a wood burner, but then I have to put up with an ugly box
of black metal taking up space for the rest of the year. I never feel
prepared for winter here as it seems so fleeting.
Local News
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I cannot let this weekend go by without a sad note on the departure
of "Splendour in the Grass" festival. Queensland's Woodford
is now the host after some residents and the council are on a vendetta
to ban such activities. It seems more than a few of us Bourgeois Bohemian
Baby Boomers no longer want boisterous behaviour in our midst.
Being a BBBB myself I did enjoy watching the Gen Ysters the next morning after their long nights moshing and revelling and whatever else they get up to. Even pretty young things look groggy after a big night. Part of the enjoyment was being glad it wasn't me feeling seedy in the morning anymore. But it beats me why more than a few of us wish to have it outlawed across the border.
I can see councils point in not wanting to encourage BB only to be only
a 'party town'. I would even support it if council were actively seeking
alternatives and creatively branding the town to be the kind of place
were only certain and selective people wanted to come. The obvious choice
is for us to play to our strength and become a mecca for healing, health,
retreats and spas, etc. But I don't see such a thing on the horizon and
we may be in for a period of morose morbidity. (Anything would be better
than alot of alliteration).
Property info
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DIY Selling
In a tight economy and a soft property market many people are looking
at the option of FSBO - For Sale By Owner. This activity is currently
on the rise with many people seeking to save many thousands by by-passing
the agent. I think it is a reasonable activity for many mid level or lower
end properties. The internet has completely transformed the way property
is sold. In many cases a house is a house is a house. But for many specialty
properties it can be a false economy to save a few thousand on fees while
a good agent can get you top dollar. However it is certainly an option.
You can read a good overview here. But obviously, when buying a good buyers
agent is always a good bet.
Foreign Buyers Beware
Boat people are not the only visitors to our shores getting the bum's
rush. The Foreign Investment Reveiw Board has tightened requirements
for foreign ownership of residential housing. It still is the ruling
that foreign buyers, of which Byron has more than its fair share, could
only buy vacant land, new units off the plan or do extensive renovations
on owner occupier homes. However there were loopholes big enough to
drive a porsche through. These have now been tightened and there are
stricter penalties for avoidance.
Stamp Duty Off the Plan
Buyers who buy units off the plan for below $600,000 are currently
exempt from stamp duty in NSW. This is an incentive from July 1 2010
till December 2013 to stimulate the flagging building industry and encourage
more housing stock. It is being widely taken up in Sydney.
Interest Rates
The expectation of an interest rate hike next week is fluctuating wildly
between a yes, no, maybe, and don't know. It depends on which economist
you talk to. The Gillard Gov will be hoping for no rise to boost their
campaign chances but the RBA board are maintaining an independent stance.
Solar Panels
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Installing solar panels as an investment is proving to be successful
under the Federal Government's Solar Credits Scheme. Choice Magazine
has found "Payback Times" for a 1.5 kW solar system in NSW and the
ACT have the shortest pay-back times (5-6 years) due to a "gross" feed-in
tariff incentive where households are paid for all the electricity
their panels produce, irrespective of their domestic power consumption.
In the other states and territories, "net" feed-in tariffs apply where you're only paid for surplus electricity fed into the grid after domestic use is subtracted. Eligible households also receive rebates for Renewable Energy Certificates (REC). Obviously sunny locations such as ours pay off best.
A larger system is also on offer requiring a $50,000 investment but requires
80 M2 of solar panels. A 20% return is estimated with the possibility
of repaying the initial investment within 5 years and then generating
reasonable profits. I intend to investigate this option further and report
back in later newsletters.
I am taking 2 weeks off from the beginning of August and going away.
I will still be checking emails from time to time. If you have an enquiry
about loans or mortgages please call my associate Jay Perron on 0425 228
882. He will be happy to help you. If you have an enquiry about buyers
agent services please send an email and I will respond.
All the best for now,
Michael Murray
0428 555 501