It was love at first sight when Garth and Jana Leslie first inspected a four-bedroom home at Collaroy Beach.
Back then, it was a little old red-brick house, but they instantly saw the improvements they could make.
“I remember the Saturday morning we walked in.
It had so much character, and I said, ‘Oh my God. This is the one’,” says Garth.
“It definitely was love at first sight.”
With a sun-drenched verandah overlooking the pool and ocean views, the property sits on a large and level north-east block of 775 square metres.
Five years and a huge renovation later the couple, together with their two children, are planning to move closer to family further north and so have put 49 Suffolk Avenue on the market, for $2.5 million.
Garth and Jana’s upgrades include a new kitchen, timber floorboards, decking and landscaping and a full render of the outside of the home.
[Buying a property] is a very, very serious investment and involves huge sums of money; the last thing you want is to end up regretting a purchase.Real Estate Institute of NSW CEO Tim McKibbin
Agent Jo Morrison of Belle Property Dee Why says it’s easy to understand the love affair.
“At even our first opening, we had a neighbour come in, saying she had to see it because it always looked so beautiful from the outside.”
nstant attraction often plays a huge role in our house-buying decisions, says psychologist Amanda Gordon.
But we need to be careful not to be totally swept off our feet by the romance.
“The problems come when people fall in love with homes they can’t afford and then they compare everything within their price range to that previous unattainable home,” she says.
“But for some people, that feeling of love at first sight is incredibly important, while others will look at those kind of purchasing decisions much more rationally and less emotionally.
So, while you can take those feelings into account, they sometimes might not present good enough reasons to actually buy.”
Richardson & Wrench director and chief auctioneer Peter Baldwin agrees.
“I love the idea of following your heart, but bringing a nark, or a second pair of eyes, with you is always incredibly useful,” he says.
“While you’re being emotional about a property’s appeal, they can be ruthlessly objective.
And that’s even more important these days, when properties are being so cleverly styled to highlight certain features, and distract from anything they don’t want you to see.”
There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each Saturday morning I like to share some of the ones I’ve read during the week.
The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.
How to balance head and heart when house-hunting, according to experts
Purchasing a property is one of the most significant moments in people’s lives – therefore it’s no surprise that it usually ends up being an emotional process.
However, in order to have a successful purchase, one also has to think with their head.
An article on Domain.com.au goes to the experts to ask – how to find the perfect balance between your head and heart.
Read the full article here
Rental growth returns
Recent results have indicated a significant rise in rent.
CoreLogic reported in its Quarterly Housing & Economic Review that capital city rents are rising again following the crackdown on investor lending.
The annual increase was mainly driven by the most populous capital cities of Sydney (+4.5 per cent) and Melbourne (+4.1 per cent).
There were also increases in Hobart (+6.2 per cent), Canberra (+8.4 per cent), and Adelaide (+1.1 per cent).
At this stage the national result is not strong enough to pull inflation much higher.
Read the full article here
UBS: All of Australia’s changes to investor lending rules are increasing the risk of mortgage fraud
There’s certainly been no shortage of changes to investor lending lately – which probes the question…
What really caused this?
According to this article from Business Insider montage fraud played a key role.
The latest housing data reveals a slowdown in investor loan growth, although the changes underway may pose other risks.
Housing finance data for June, released yesterday by the RBA, shows that growth in investor lending slowed in June, while loans to owner-occupiers increased.
Taking a close look at the numbers, UBS analysts Jon Mott and Rachel Bentvelzen said that monthly growth in investor lending slowed to 0.41% in June from a peak of 0.76% in December.
However, the slowdown in overall home lending hasn’t been nearly as steep.
The RBA’s figures show that annual housing credit grew by 6.6% for the year to June 2017, only just below the 6.7% growth seen at the same time last year.
The numbers show that investor credit has slowed at the same time as loans to owner-occupiers have increased.
This chart from UBS tells the story:
Given that lending to first-home buyers is still near record lows, Mott and Bentvelzen said that part of the increase in owner-occupier loans could be explained by existing home-owners upgrading to bigger properties.
Then they added an interesting kicker, suggesting [our emphasis added] that the smaller overall fall in housing finance implied that “some investment borrowers are telling their lender they intend to occupy the property to benefit from lower interest rates”.
In other words — borrowers could be engaging in a bit of mortgage fraud to try and dodge the higher interest rates applied to investor loans (particularly interest-only investor loans).
Click here for the full article
Home ownership too tough for young
Has home ownership become a hopeless dream for the young?
An article on News.com.au looks at the statistics indicating a rapid decline in home owners under 40.
HOME ownership among young Australians has rapidly declined and incomes have flatlined, meaning an increased likelihood of paying rent well into retirement.
New statistics from the University of Melbourne’s long-term HILDA study show a growing wealth divide across generations, with more young people living at home than in 2001.
Home ownership among 18 to 39-year-olds has declined rapidly since 2001, from 36 per cent down to 25 per cent in 2015.
Professor Roger Wilkins authored the Household, Income and Labour Dynamics in Australia survey and says young people are being locked out of the housing market.
“It’s creating a lot of negative sentiment among people in this age group,” he told AAP.
“It seems aspirations for home ownership haven’t really diminished a great deal.
The attitude is they would like to be buying homes and they are finding it much more difficult.”
Every year HILDA surveys the same 17,000 people as part of Australia’s longest- running population study.
Prof Wilkins said if the housing market stays unaffordable then young people may never live in their own property.
“We’re looking at a large proportion of this cohort never owning a home and that will have implications for their wellbeing, particularly in retirement, having to pay market rents,” he said.
“Currently well over 80 per cent of retirees own their home, which makes things a lot easier when your income declines.”
Prof Wilkins said household incomes grew strongly to 2009 and slightly between 2009 and 2012, but since then they have, on average, stopped growing.
“A society where incomes aren’t growing can cause problems, disaffection,” he said.
Even though young people will have more superannuation than current retirees, Prof Wilkins warns they may end up using a lot of it to pay off a home loan.
Young adults are also living with their parents longer: 60 per cent of men aged 22 to 25 and 48 per cent of women the same age were living with their parents in 2015.
Click here for the full article
More Evidence Coffee Is Really Good For You
If you’ve been looking for an excuse to indulge in that extra cup of coffee – this may just be your lucky day.
This article form the Huffington Post looks at some key befits that coffee can have on your health.
Java drinkers, rejoice: Two new studies affirm your obsession.
Research published Tuesday in the journal Annals of Internal Medicine found an association between coffee and good health.
The results from both studies suggest that the more coffee you drink, the lower your risk of dying from illnesses like heart disease.
The benefits were the same for both decaf and caffeinated coffee.
In one study, researchers examined data from 185,000 people across multiple populations, including African Americans, Japanese Americans, Native Hawaiians, Latinos and whites, over a 16-year period.
Researchers looked at individuals’ coffee consumption patterns through a questionnaire as well as their health data, like whether they smoked or had an illness.
The study concluded that greater consumption of coffee was linked to a lower risk for death in all population groups, except for Native Hawaiians, which showed no notable difference.
People who drank two to four cups per day had an 18 percent lower risk of dying from diseases like heart disease, stroke and cancer than those who didn’t consume the beverage.
The other study, unrelated to the first, examined 520,000 people in 10 European countries, also over a 16-year period.
The researchers found that coffee consumption lowered the risk for mortality, especially from digestive and circulatory diseases.
This effect was observed across each country and didn’t vary by location
There are some slight caveats with all of this.
The first study defined a cup of coffee as eight ounces, but didn’t account for the type of coffee or what was in it.
So, it isn’t clear if additives like cream and sugar, or the variety of beans, make a difference. (Doctoring your drinks can rack up calories, which isn’t so great for your health, so it’s best to beware.)
Also, the research didn’t examine how much caffeine was in the coffee the individuals drank.
Click here for the full article
Weekend video: How does caffeine keep us awake?
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