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.
Tinder for renters: the state government’s plan for long-term leases
There’s very little we can’t do online these days – order food, book accommodation, find a driver, find love -now the world of renting had caught up too.
An article on Domain.com.au looks at a new ‘match’ system for renters and landlords.
Consumer Affairs Victoria is imagining some of its staff with cupid-style bows and arrows, but instead of trying to match up lovelorn singles, they’re looking for renters and landlords who want long-term leases.
Details are vague, but in its annual report released last week, Consumer Affairs says it will create an online matchmaking service to help marry up landlords and renters who want long-term leases.
The government’s recently announced changes to rental laws include creating a standard long-term lease agreement, giving tenants who want to stay put for longer than five years the same rights as those with shorter leases.
Some say the platform won’t be necessary for renters to find the perfect match.
Real Estate Institute of Victoria chief executive Gil King says though long-term leases should be catered for, the new legislation leaves landlords in the lurch.
“The legislation caps bonds in leases of more than five years at the equivalent of just four weeks’ rent, which is woefully inadequate protection for a home that may be tied up for potentially a decade,” Mr King says.
He says that there isn’t much value in a new online platform, because there are already a number of options for renters and landlords to get in touch.
He is also concerned that the site could make it harder for landlords to get a good tenant signed up.
“Given the government does not intend to prevent tenants who are already registered on a tenancy database from using the matching service, self-managing landlords may find themselves unwittingly matching a tenant who has a history of property damage or arrears,” Mr King says.
A Consumer Affairs Victoria spokesman said the platform was in development, and could not give any details about how it would work.
He says renters in Victoria are most likely to be families, so giving them stability is important.
“Many are interested in a long-term lease in order to be able to lay down roots – to find a local job, enrol their kids in school and establish themselves in a community,” the spokesman says.
Renter and single mum Shereen Kiddle is all for the changes, as moving every year or two with young kids is less-than desirable.
“When you rent a property that suits your growing kids and their needs, fits your budget, and has easy access to school, their friends and activities, you really don’t want to have to find a new home and disrupt all that has been established,” Ms Kiddle says.
“To enter long term lease would ease some single mum guilt, not to mention the savings in labour, time, moving expense and dealing with rental landlords who can really add unecessary stress to the process.”
Rent.com.au chief executive Greg Bader says although he thinks long-term leases are a good thing, the commercial sector is already doing the job of the online platform.
“I think their heart’s in the right place,” Mr Bader says.
“Most of these things need to be solved commercially through existing vehicles – I think that would be more logical.”
Landlord Jane Canaway says she would continue to use an agent to find renters for her properties, even if there was an online platform.
“I think it’s a waste of time,” Ms Canaway says. “I don’t think you need a different way of meeting tenants.”
Ms Canaway owns eight rental properties and has had one of her tenants on a year to year lease since 2009.
She said she would be happy to have a tenant sign on for more than five years.
Read the full article here
Down payment blues
It would seem Queensland’s high rise boom is coming to a stand-still.
It’s been a remarkable few years for dwelling construction in Queensland, especially for high-rise apartments, but the boom times for development are drawing to a close.
The amplitude of this cycle has been on a par with Queensland’s dwelling construction boom of 1994.
Back then about a quarter of dwellings built were multi-units, but the ratio has twice as great this time around, accounting for more than half of the total by 2015.
With lenders now tightening deposit requirements for apartment buyers across a swathe of inner Brisbane postcodes, as well as developer insolvencies peppering the newswires, there’s no doubt that dwellings starts for apartments will continue to drop precipitously from the latest reported numbers.
Read the full article here
Top 5 suburb picks for greatest capital growth potential
When buying a property – one of the biggest questions is usually…
Which suburbs will have the most growth?
In this article for Switzer, John McGrath looks at the top 5 suburbs around the capitals – destined for growth.
The Sydney and Melbourne property boom that has dominated the Australian real estate landscape for more than five years is over and people are now wondering what’s next for our two big cities and when will the rest of the country catch up?
In our just released 2018 McGrath Report, we take a look at the biggest boom winners (the suburbs with the most growth) and what’s next for Sydney and Melbourne, including all the small market trends we expect to see as these cities return to normal selling conditions.
We also look at some key trends across the country, including the transformation of regional hubs close to our big cities; the evolution of super apartments and residential towers incorporating retail and recreation; and the changing ways we are using our homes, including the Airbnb trend.
We also look at how immigration has shaped our property market and identify the dominant immigrant neighbourhoods of Sydney, Melbourne and Brisbane.
I’ll go into all of this in more detail over the next couple of months here on Switzer Daily.
Today, let’s start with a general overview of the Australian property market and I’ll also give you my Top 5 Suburb Picks for greatest capital growth potential in each east coast capital city.
The most frequent question I am asked year after year is “What’s the market doing?”, which is of course impossible to answer as there isn’t one market but rather multiple markets across the country.
If we were to take an x-ray view of the property sector, we’d observe two main markets: Sydney/Melbourne and Most Other Places.
We have seen the two big cities decouple from the rest of the country and create their own marketplaces, whilst most other regions have been rather lukewarm.
This has created a value gap that is too wide, in my view.
While I believe the gap is likely to close somewhat over the next few years, it will not be because of a major correction of values in Sydney and Melbourne.
Rather, it will happen as other cities play catch up.
But while I’m certain that Sydney and Melbourne will take a breather, I’m equally certain there is no bubble about to burst.
To understand why, let’s look at the main drivers of growth for these two important cities:
- Strong skilled worker population growth
- Investor appetite for bricks and mortar
- Ongoing overseas investment into Australia
- Shortage of property supply in most markets
- Record low interest rates
The key question for me is which of these factors are likely to disappear overnight? I believe that none will change dramatically over the next five years.
John McGrath’s Top Suburb Picks
- Breakfast Point
- Cronulla beach
- Pascoe Vale
- West Footscray
- Doncaster East
BRISBANE & SURROUNDS
- North Lakes
- Peregian Springs
Read the full article here
Melbourne property market conditions remain resilient relative to Sydney
As the rivalry between between Melbourne and Sydney continues – it looks like one state is ahead in the property market race.
According to an article on News.com.au – housing conditions in Melbourne are holding strong in compared to it’s rival.
MELBOURNE’S housing market remains Australia’s best-performing capital city for home value growth, along with Hobart, resisting the national slowdown.
Our housing market conditions have remained much stronger relative to Sydney, with dwelling values 0.5 per cent higher for the month to be up 1.9 per cent over the rolling quarter, according to CoreLogic’s latest Hedonic Home Value Index.
CoreLogic head of research Tim Lawless attributes this resilience to Victoria’s record-breaking migration rate, which is creating unprecedented housing demand.
Strong jobs growth and a healthier level of housing affordability relative to Sydney are also supporting continued growth in housing values in Melbourne.
“Despite the stronger growth profile, Melbourne dwelling values are now rising at their slowest quarterly pace since mid-2016,” Mr Lawless said
Since moving through a peak rate of growth in November 2016, capital gains across Australia’s housing market have been losing momentum, with national dwelling values unchanged over the month of October.
Conditions were flat across the combined capital cities in October, and the combined regional areas of Australia.
However, growth in the capital cities (up 7.0 per cent) has outperformed the regional areas (up 4.9 per cent) in the past twelve months.
Gross rental yields across Melbourne remain the lowest of any capital city, with the typical dwelling attracting a record-low gross yield of 2.89 per cent, 20 basis point lower than a year ago.
Read the full article here
What Does My Décor Say About My Personality?
When it comes to your home – do you prefer a white pallet? Lots of pillows? A vintage feel or Maybe a completely minimalist look?
Did you know that your choice of decor style could have a lot to do with your personality?
This article on The Huffington Post looks at what your choices say about you.
Your home and office décor say a lot about who you are as a person.
Everything from the type of flooring, to the color of paint, to the number of throw pillows you incorporate says something about who you are and your personality.
Even in your own small settings, like an office cubicle, you outline your personality with the décor and style paths you choose.
Take a look at a few décor techniques for homes and offices and discover what they say about you, the decorator.
When you have more living room seating than you actually require, it shows that you are welcome to guests visiting and likely have a personality that enjoys socialization and entertaining.
This is also true in kitchen spaces, where extra bar stools at a kitchen island imply that you want guests to pull up a chair and stay for a while.
This principle should guide design in office settings as well.
If you are a consumer-facing business and want people to come into the office to speak with you or company representatives, have ample seating that is comfortable and welcoming – both in waiting areas and individual office spaces.
Having many throw pillows in your common areas is also a sign of welcome and gregariousness.
You don’t just want people to sit; you want them to feel comfortable and stay in your home a little longer as a result.
If you have an “at-home” feel to your office space, consider the use of throw pillows to mimic the idea of homey comfort and welcome.
Uncluttered counters and table tops signify a Type A personality who values the way things look over the way things function.
For example, if you put your coffee maker in a kitchen cupboard after every use, you likely have a Type A personality and would rather spend a little more time preparing it each use than letting it sit out on the counter.
The same is true in bathroom settings, living rooms, and bedrooms.
If you like things put away, and less out in the open, your Type A personality is shining through in your design style.
It’s wise to use care when implementing minimal décor or bare counters in an office; you do not want to appear cold or “all business” to outsiders (in most cases).
There are ways to carefully choose which items to keep out, and which to put away, for the perfect combination of non-clutter and warmth.
Soft and Sheen Fabrics
People who prefer luxury items and the finer things in life often express that through décor that is soft and has a sheen to it.
You won’t often see chrome or metal furnishings in a home or office that strives for high-class elegance; you’ll see dark woods, deep shades of red or blue, and layered looks in curtains, sofas, and flooring.
Using muted tones and patterns signifies that you are a peacemaker, according to interior design expert Jane Lockhart in an interview with Elle Décor.
When you avoid statement pieces or colors, you are taking the middle ground. In a home, this can read boring or even unstylish.
In an office, however, neutral décor is smart because it has the best chance of leaving a good impression on the widest array of people.
Something as simple as picking out a paint color for your walls actually says in-depth things about your personality.
People who love orange and yellow tones are optimistic, preferring bright reminders of the life force of the sun and fire.
Warm, bright colors also play on a person’s perception as they appear to leap forward, though cooler colors recede.
People who gravitate towards brighter blues and greens are more laid back, with the shades reminding them of open skies or bodies of water.
Outgoing and creative types are generally drawn to jewel tones, like the rich emeralds and purples associated with royalty or even Hollywood events.
When it comes to office décor, paint choice is crucial because it will impact the way others perceive your company.
Color choice is also good to keep in mind when designing digital properties, like websites, as well.
Open Floor Plans
A home or office with an open floor plan shows that there is a sense of family and togetherness.
It feels like there is nothing off limits and that everyone is welcome in all areas.
Closed-off floor plans, though essential in some office settings, give off a more limited feeling and imply that visitors are unwelcome in these areas.
An open floor plan also makes an area seem larger than it is, particularly if natural lighting is maximized.
A home or office that is perfectly coordinated tells an empty tale.
It shows that you went out and bought all of a certain design trend at a certain point in time, and then moved on.
Eclectic accessories show more of a long-term story, even if you purchased all the items at once.
The key is to let your décor evolve over time, as you and your office evolve alongside it.
This will show the depth in your décor and personality – and make you more intriguing to guests in your home or office.
Antique accents add an automatic touch of sophistication, even if they weren’t viewed that way in their own time period.
A person who incorporates vintage or antique items shows intelligence and it implies a love for history.
In an office setting, it can read higher sophistication but an elevated level of seriousness, too, so keep that in mind when you are thinking about what perception you want to convey.
It’s true that your décor is a reflection of your personality, even though you may not have realized it in the past.
Keep these décor-personality thoughts in mind as you design your next space, either at home or in the office, so your design can convey exactly what you want it to about you.
Read the full article here
Weekend video: Science Of Persuasion
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.