August 2009 Property Book

Page 1

NEWS. COMMUNITY. HOMES. 2009

the

AUGUST

Residential Clock’s Big Hand on Recovery

Property Book

PAGE TWO Fixed Or Variable Home Loans Which Is Better?

YOUR LOCAL NEWSLETTER & BUYERS PROPERTY GUIDE

PAGE THREE

WHY HOMES ARE THE NEXT HAVEN The residential property market has a logic of its own, something that has become increasingly apparent to the doomsayers of last year as 2009 has unfolded. Last year, the value of Australia’s commercial property trusts fell by more than 30%, according to Super Ratings’ property index. Some ‘experts’ predicted falls of up to 40% in residential home values would mirror the collapse of property values in the US and UK, as a result of the global financial crisis (GFC). RP Data indices (available monthly on Gateway) show the median value of Australian residential property fell by around 3% in 2008, and in the first four months of 2009 has risen by 2.8%. In Melbourne, prices have re-bounded by around 4.5%. When the sharemarket falls, businesses tighten their belts and put any expansion plans they had on hold. This directly effects to the commercial property sector.

Renting With Pets – It’s A Matter of Responsibility PAGE FOUR

Demand for office space, factories and industrial complexes fall and commercial property trusts soften. History indicates that falling sharemarkets have the opposite impact on residential property. Following the 1987 sharemarket crash, the residential property market in Melbourne grew by 20% per year for the next two years. The same thing happened again in the 2000 and 2001 sharemarket downturn, driven by the effect of the “tech wreck” and September 11. The property market again grew by 20% per year in 2001 and 2002, double its long-term average.

Local Property For Sale PAGES SIX TO ELEVEN

Top 10 Growth Areas In Australia 1. Brisbane, QLD

17,368

2. Gold Coast, QLD

13,210

3. Moreton Bay, QLD 4. Wyndham, QLD

11,831 8,874

5. Sunshine Coast, QLD 6. Wanneroo, WA

8,734 8,552

7. Casey, VIC 8. Ipswich, QLD 9. Melton, VIC 10. Cairns, QLD

8,014 6,014 6,016 5,985

Source: REIQ Journal, June 2009

.DQ@MF During economic recession, businesses contract and share markets fall. To counteract this the Reserve Bank of Australia (RBA) lowers interest rates to continued on page 3

Phone: 07 55960055 nfn@nfn.com.au www.nfn.com.au


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August 2009 Property Book by First National Nerang - Issuu