The Problem of Australia’s Negative Equity on Real Estate

May 15th, 2012

The latest statistical figures from RP Data, a CoreLogic-owned provider of risk management services and investment property information and analytics in Australia and New Zealand, revealed that there is a significant increase in the number of Aussie homeowners who find themselves in negative equity. This means that their properties, as of the time of study, were worth less than their value at the time of purchase.

To illustrate, RP Data’s figures by the end of September 2011 showed that an estimated 4.9% of Australian homes were in negative equity. However, by the end of December 2011, RP Data recorded a whopping 6.4%, revealing that 1.5% more Australian homes suffered a decline in value from their original worth in just about three months.

There was also a decrease in the number of homes with current value that’s more than double their original price (from 43% in September to 42% in December), as well as in the rate of appreciation or value increase of capital city homes (compared with the average of 25% in the last five years towards December 2011). The latter, in fact, is one of the factors that caused the rise in the number of homeowners in negative equity.

This scenario is being interpreted by some as a manifestation of the recession in Australian homeowners’ economy, especially that some of them, in fact, have even incurred home loans higher than the present worth of their properties. It could be considered that this is a reflection of the slump in housing markets since the latter part of 2010, when real estate values fell by about 5.5%.

While this, at first glance, could seem worrisome for property investors, homeowners and other stakeholders in the realm of real estate and property investment, there is actually no need to worry, as the Australian government has already set new laws to protect homeowners from the state of negative equity.

New No-Negative Equity Laws
In order to prevent people from borrowing more than their home’s worth, the Australian government set new laws to ban negative equity debts and compel financial institutions to provide better and more detailed disclosure of their interest rates and other loan information to borrowers. This move was to clean up the country’s $3 billion equity release industry, which has been bugged with dirt from scams and inappropriate lending practices.

The provisions on greater information disclosure are focused on providers of accommodation bond and reverse mortgage loans, requiring them to thoroughly and sufficiently explain to borrowers not just their interest rates, but also the implications of such compounding rates on their financial welfare. They will also be obliged to provide total debt estimates involved in the home equity release product, so the borrower would have an idea on payables to expect.

By enforcing such new laws, homeowners are prohibited from availing of loans more than their property’s worth, thus preventing them from falling into deeper debt. This will also help people make better use of their resources and become more responsible in managing their liabilities and investment properties.

About the Author: Elston Marcelo is a marketing consultant for PureChecks.com, a leading company in the industry of checks. They offer a wide variety of designer checks available for your different needs.

Retirement Unit For Sale - Neutral Bay - Sydney NSW

March 18th, 2012

Bright, sunny retirement unit in sought after complex in the heart of Neutral Bay. Two bedrooms, two bathrooms with balconies from all main rooms overlook tropical gardens and pond.

This unit is one of the largest in the complex and is in a very quiet location. It is ideal for those wanting to downsize but still seeking an active and useful lifestyle.

Shops, cafes and transport are at the door with the city only ten minutes away. There is a full range of services available and the facilities are excellent, including swimming pool, craft room, billiards room with an on site hairdresser.

Ample visitor parking and spacious entertaining areas make it easy for friends and family to visit and for those who like people plus a serene environment, it is ideal.

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Seafront Property For Sale - Stanwell Park NSW

January 13th, 2012

Do you ever dream of just walking to the beach with your towel slung over your shoulder instead of having to pack and head off for a day’s outing? Have you ever thought of earning extra income from your very own one bedroom self contained B & B apartment with separate access so you don’t have to worry about the security of your own home? Well, now is your chance!

Located directly across the road from the beach and park with amazing views, stands this brick 4 bedroom family home. Air conditioned throughout this easy living home boasts 2.5 bathrooms and several living rooms, all overlooking the beach and park. Two separate garages, one with workshop space makes this property a rare find.

Travel to Wollongong or Sydney CBD by train with the station being only a short walk away, then come home to paradise. What more could you want?

>CLICK HERE TO VIEW THIS PROPERTY FOR SALE @ REALESTATEGUIDE.COM.AU <

Oceanfront Property For Sale NSW Australia

Farm For Sale - Warialda - NSW

January 10th, 2012

Experience real Australian bushland at Warialda, New South Wales, Australia…

- Featuring:

1. Calming birdsong

2. Intriguing mix of soils (black, red, sand)

3. Inspiring range of vegetation - some stands have not been disturbed

4. Five paddocks securely fenced

5. Watered by dams. Excellent bore prospects

6. Mains power through block

7. Twelve kms by sealed all weather road to Warialda

8. A good friendly town. Three schools, three doctors, pharmacy, attentive aged care, supermarket, excellent sporting facilities including golf and bowling club

9. Building entitlement with attractive home sites…or…handy enough to live in town and poke out when you like

>CLICK HERE TO VIEW PROPERTY FOR SALE ON REALESTATEGUIDE.COM.AU<

Rural Property For Sale in Warialda New South Wales Australia

Coastal Lifestyle Property - For Sale Seabird - Western Australia

January 3rd, 2012

Beachside Holiday House

Friday afternoons just got brighter… knock off work, grab your bathers and a change of clothes and you could be on the lawn at Seabird by sunset with beer in hand!

Just an hour from Perth, great fishing, secure environment for the kids to play with all the comforts of home and just 2 minutes walk to the beach. The site has a boat ramp for those who enjoy fishing. There is also an area above the beach with Gazebos with tables and chairs where you can enjoy the sunsets.

The kids won’t run out of things to do either, there are tennis courts, a games room with a pool table, table tennis and games, a playground, swimming pool and of course the fabulous beach for swimming and building sand castles.

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Coastal lifestyle property for sale

Heritage Victorian Bluestone House on Acres - Western Australia

November 30th, 2011

Mount Saint Rose is located in historic Kapunda, the gateway to Barossa Valley. This circa 1891, two storey, Victorian Bluestone property, boasts some 12 main rooms nestled amongst 5 acres of picturesque grounds.

These 12 generously proportioned rooms hold great presence and ambience, of a residence both rich in history and well loved by all its occupants.

The newly renovated kitchen features granite bench tops, European appliances, lustrous preparation areas and plenty of storage space.

The bathroom has also been fully renovated, while keeping the heritage styling of the residence, featuring a dual vanity and a large shower room with a luxurious rain head fitting to wash away the day that was.

With two main rooms, featuring 18ft wooden ceilings, the opportunity for entertainment or displays are endless.

This property is perfect for anyone seeking a family home, holiday retreat, or potential business opportunity, with great subdivision potential. This is a once in a lifetime opportunity to be a chapter in this residence’s all ready vast history, whilst being surrounded by some of the world’s best wines and scenery.

>LINK TO VIEW THIS PROPERTY FOR SALE<

Property for Sale - Kapunda - Western Australia

Farm For Sale North Motton Tasmania

October 20th, 2011

37 Acres with River frontage. Unique Lifestyle Property For Sale. Private bush setting on the Leven River only 14 kms from all facilities at Ulverstone on Tasmania’s North West Coast.
Bush block location of 15.05 hectares (37 acres) with full frontage onto the Leven River. Very private secluded setting yet close to the coast and all facilities. Near new 3 bedroom CB residence complete with satelite TV and internet connection. An adjoining courtyard and attached 9×14 CB shed workshop with full facilities.

Power supply from solar tracker system, micro hydro and 12 Kva back up generator.

Dam and gravity feed water plus river pump, covered orchid, garden and large hot house.

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Mansfield on the Manning River

May 25th, 2011

Unique lifestyle property and business on the beautiful Manning River in the Manning Valley on the Mid North Coast of NSW.

6 Rural farm stay cottages, pool, and beautiful surrounds.

The extensive views from the property will take your breath away. We look over the river to the farmlands and then to the mountains in the distance. With the opportunity to participate in boating activities and fishing on the river make this a wonderful place to stay.

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Norfolk Island Home For Sale

May 5th, 2011

The property is situated on 2.3 acres of land which includes fruit trees and Kentia Palms, with a restful bush view.

3 Bedroom open plan home close to shopping centre and amenities.

High ceiling in the lounge, large sliding doors, verandahs on three sides, main bedroom with ensuite, guest bathroom has bath, second toilet off laundry. Kitchen has island cooker and wall oven.

Basement has two vehicle parking, plus workshop and storage.

There is also a self contained flat next to the basement.

To be sold fully furnished.

Large garden shed close to the house.

This property has it’s own creek which is the boundary.

> Click Here to view this property for sale on Realestateguide.com.au <

Lifestyle Acres Rossmore Road

April 19th, 2011

This property for sale is on historic Rossmore Road, almost 5 acres with fat hen creek as one boundary, and a road reserve as another.

Rossmore Road forms part of the National Bicentennial Horse Trail. It is 7klms from the gorgeous little township of Kilkivan and approx 30 mins from Gympie. It is also the site of one of Australia’s very early (first?) goldrush sites and the Prophet Gold Mine continues on today.

We have put a 3 bay car-shed with verandah and the roof is insulated, a big tank (10,000 gallons think), outdoor shower. Fences are in excellent condition. I have seen platypus in the creek and have also seen many wonderful bird and frog species.

The region also boasts two national parks (Mudlo) and (Boat Mountain Conservation Park) and there’s more if you go to Goomeri and further afield, we have been fossicking for agates in Murgon (you should see the gem collection in the Murgon dairy museum), the Maidenwell observatory, wineries and Bunya National Park not much further away, near Kingaroy and more…..

View This Property For Sale on Realestateguide.com.au