2009 Spring

nicolez

Staying afloat, alone

THE PROPERTY REVIEW

A Quarterly Journal published by

Tower & London

Spring 2009


Tower & London

PROPERTY REVIEW

A quarterly journal published by

Tower & London

Spring 2009

Enquiries regarding this journal should be made to:

Tower & London

38 Alfred Street,

Milsons Point NSW 2061

Phone: (61) 2 9956 6500 Fax (61) 2 9956 6522

Email: reception@towerlondon.com

Disclaimer:

The information contained in this publication is for general information purposes only.

Readers are advised that while an earnest effort has been taken to ensure the information in this document was

obtained from reliable sources, Tower & London gives no guarantees or warranties, written or implied, over the

accuracy of the information provided. Tower & London Pty Limited disclaims all responsibility for any loss or damage

suffered as a result of the use of the contents of this publication. The views expressed in this publication are those of

the writers and do not necessarily reflect the views of the publisher.

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contents

Message from John Tower 4

Monetary Policy

By Glenn Stevens 5

Disposable income

From Budget 2009-10 6

First Home Owner’s Schemes 7 & 8

Stamp Duty on Purchase of land 9

Property Prices Review:

- Australian Capital Cities 10

- Lower North Shore, Sydney 11

Recent Rentals 12

Recent Sales 13

Tower and London

Our Team 14

Our Offices 15

Useful sites

Back Cover

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Message from John Tower

Income projections for 2010-2011, these

are interesting figures as in all the categories

listed a substantial increase is predicted.

On pages 7 & 8, there is an update

to the Commonwealth’s First Home

Owner’s Boost from the budget and how

little the change really is, as the base of

the state scheme and the commonwealth

First home owner’s scheme remains in

place. Why the rush then?

Welcome to the Spring 2009 issue

of The Property Review. There are many

changes in this issue; mainly, the focus is

on more articles, sourced from Government

and industry bodies, relevant to the

economy; and particularly, to residential

property. Therefore, this issue is a little

slimmer yet with more useful information.

It seems that every economic news article,

lately, is mentioning the recovery,

especially here in Australia; you might

have noticed this magazine’s cover showing

a lonely tree in the lake: the tree

represents Australia; the only modern

economy with positive growth: staying

afloat, alone, indeed.

With the economy in mind, I have chosen

the first article to begin with, on the opposite

page, the Governor of Reserve Bank

of Australia, Glenn Steven’s media release

on 1 st September 2009; when the

reserve bank kept the interest rates at

this historically low level. The argument

is: the economy is improving, perhaps

better than expected and definitely better

than other industrialised economies, yet

it’s too early to increase interest rates.

But as the Prime minister and the treasurer

hinted in early September: interest

rates are bound to rise from these low

“emergency” levels.

Then on page 6: from the Federal Budget

2009-10, I have extracted the Disposable

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Stamp Duty on purchase of land in NSW

is such an outdated table, it’s on page 9.

Imagine land worth $14,000 these days,

then another level at $30,000; in fact

there are five thresholds up to

$1,000,000. This table provided is for

quick reference to be used when thinking

of buying a property. keep this copy

handy!

The Property Prices Review has been

simplified; the tables have been removed

showing larger clearer charts spanning

four years, on quarterly basis. I have retained

the same concept, cities and regions

in comparison; and I welcome your

input.

Internally, we have merged the Milsons

Point office with the St Leonards office;

as Milsons Point is a much larger office

and has been in operation for sixteen

years, it was decided to move our management

and staff to Milsons Point. We

continue to manage a large number of

properties in St Leonards and intending

further growth there in the next five years.

I am pleased to confirm the appointment

to Ryan Christoffersen to the team, Ryan

has been working in property management

for many years, in residential and

commercial leasing; he joins us in the capacity

of Senior Property Manger, taking

on the lead role for the entire portfolio.

Ryan is assisted by Jackie and relies

heavily on the administration team of Jennifer

and Astrid.

Ewald has been promoted to caretaker

General Manger as well retaining his

sales management position. Enjoy this

positive Spring 2009 issue.


Statement by Glenn Stevens, Governor

MONETARY POLICY

Date: 1 September 2009

At its meeting today, the Board decided to

leave the cash rate unchanged at 3.0 per cent.

With considerable economic policy stimulus in

train around the world, the global economy is

resuming growth. Growth in China has been

very strong, which is having a significant impact

on other economies in the region and on commodity

markets. The major economies appear

to be approaching a turning point. Most observers

still expect only modest growth in the world

economy in 2010, due to the continuing legacy

of the financial crisis, though forecasts have

been revised up recently.

Sentiment in global financial markets has continued

to improve. But the effects of economic

weakness on the balance sheets of financial

institutions will still be coming through for a

while. This constitutes one of the main remaining

risks to the global expansion. For the recovery

to be durable, continued progress in restoring

balance sheets is essential.

Economic conditions in Australia have been

stronger than expected, with consumer spending,

exports and business investment notable

for their resilience. Measures of confidence have

recovered. Some spending has probably been

brought forward by the various policy initiatives; in

those areas demand may soften in the near term.

Some types of capital spending are also likely to

be held back for a while by financing constraints.

But overall, it now appears that investment may

not be as weak over the year ahead as earlier expected.

Higher dwelling activity and public demand

will also start to provide more support to spending

soon and, hence, growth is likely to firm going into

2010. Unemployment has not, to this point, risen

as far as had been expected. Weaker demand for

labour, evident in a decline in hours worked, nonetheless

has seen a moderation in labour costs.

Helped by this and the earlier fall in energy and

commodity prices, inflation has been declining,

though measures of underlying inflation remained

higher than the target on the latest reading. Underlying

inflation should continue to moderate in the

near term, but the likelihood of inflation being persistently

below the target now looks low.

Credit growth overall remains quite modest. Housing

credit has been solid and dwelling prices have

risen over recent months. Business borrowing, on

the other hand, has been declining, as companies

have sought to reduce leverage in an environment

of tighter lending standards. Large firms have had

good access to equity capital and access to debt

markets appears to be improving, helped by the

better-than-expected economic conditions and increased

willingness on the part of investors to accept

risk.

The Board’s judgement is that the present accommodative

setting of monetary policy remains appropriate

for the time being. The Board will continue

to adjust monetary policy so as to foster sustainable

growth in economic activity and inflation

consistent with the target.

5

(Source: Reserve Bank of Australia)

5


Budget 2009-2010

Disposable Income

Projected improvement in the real disposable incomes and the net tax thresholds of different

household types from 2007-08 to 2010-11

a) AWOTE is average weekly ordinary time earnings

for fulltime employees.

(b) Disposable income is the sum of private income

and government cash transfers less net tax paid.

(c) The net tax threshold is the private income at

which taxes paid exceed cash benefits received.

(Source: Australian Government, Budget 2009-10)

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First Home Owner’s Schemes

Commonwealth’s First Home Owner Boost

The First Home Owner Boost scheme is

an Australian Government Scheme to assist

first home buyers purchase or build

their first home. The scheme is administered

by the NSW Government and is in

addition to the $7,000 First Home Owner

Grant.

The Australian Government announced

changes to Commonwealth’s First Home

Owner Boost in the Federal Budget on 12

May 2009.

For contracts made between 14 October

2008 to 30 September 2009 (inclusive):

• first home buyers who purchase established homes will receive a boost of

$7,000 that will double the grant to $14,000

• first home buyers who build a new home or purchase a newly constructed home

will receive an extra $14,000 to take their grant to $21,000.

For contracts made between 1 October 2009 to 31 December 2009 (inclusive):

• first home buyers who purchase established homes will receive a boost of

$3,500 that will take their grant to $10,500

• first home buyers who build a new home or purchase a newly constructed home

will receive an extra $7,000 to take their grant to $14,000.

NSW New Home Buyers Supplement

First home buyers in NSW who qualify for the First Home Owner Grant and are buying a

newly constructed home or building their first home may be eligible for an additional $3,000

payment known as the NSW New Home Buyers Supplement.

The $3,000 NSW New Home Buyers Supplement is in addition to the First Home Owner

Grant and the Australian Government’s First Home Owner Boost.

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First Home Owner’s Schemes, continued

Residency requirements

Both the First Home Owner Grant and First Home Plus Schemes

have residency requirements. Under the First Home Owner Grant

Scheme, at least one applicant must occupy the home as their principal

place of residence for a continuous period of six months commencing

within 12 months of settlement or construction of the

home.

Under First Home Plus and First Home Plus One, if you are

buying an existing home:

• at least one of the eligible purchasers must occupy the property as their principal

place of residence for a continuous period of at least six months, with that occupation

starting within 12 months after completion of the agreement or transfer.

• in the case of vacant land, the Chief Commissioner must be satisfied the vacant

block of land is intended to be used as the site of a home to be occupied as the

principal place of residence of one of the eligible purchasers.

If, for some reason, you are unable to move into your new home within 12 months and still intend

to occupy it as your principal place of residence, you must forward an application to the Chief

Commissioner for an extension of time before the end of the 12 month period. The Chief Commissioner

does have the discretion to extend the time for you to move in and his decision will be

based on the merits of your claim.

If the residency requirement is not met and you have not been granted an extension of

time, then within 14 days of the end of the 12 month period you must:

• give written notice of this fact to the Chief Commissioner, and

• pay back the grant and/or relevant duty to the Chief Commissioner. The relevant

duty is the amount you saved as a result of an exemption or concession on transfer

and mortgage duty.

(Source: New South Wales, Office of State Revenue website)

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Stamp duty on purchase of land in NSW

Rates and thresholds

Dutiable value of the dutiable property subject

to the dutiable transaction

Rate of duty

$0 - $14,000

$1.25 for every $100 or part of the dutiable

value

$175 plus $1.50 for every $100 or part ,

$14,001 - $30,000

by which the dutiable value exceeds

$14,000

$415 plus $1.75 for every $100 or part,

$30,001 - $80,000

by which the dutiable value exceeds

$30,000

$1,290 plus $3.50 for every $100 or part,

$80,001 - $300,000

by which the dutiable value exceeds

$80,000

$8,990 plus $4.50 for every $100 or part,

$300,001 - $1m

by which the dutiable value exceeds

$300,000

$40,490 plus $5.50 for every $100 or

over $1m

part, by which the dutiable value exceeds

$1,000,000

A sale or transfer of land (including improvements) or a business in NSW is liable to

duty. It is immaterial whether or not the transaction is effected by a written instrument

or by other means, including electronic means.

A liability for duty arises when the sale or transfer occurs. However, if the sale or

transfer is effected by a written instrument, liability for duty arises when the instrument

is first executed.

Duty is payable within 3 months of the date liability arises. The purchaser or transferee

is liable to pay the duty.

(source:NSW office State Revenue website)

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Property Prices Review

Australian Capital Cities, Median House prices

600

(Source: Real Estate Market Facts)

550

500

450

400

350

300

250

200

Mar-05

Jun-05

Australian Capital Cities, Median Unit prices

400

350

300

250

200

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

(Source: Real Estate Market Facts)

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

150

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

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Property Prices Review, continued

Lower North Shore Median House Prices

(Source: Property Focus REINSW)

Houses, Lower North Shore

2400

2200

2000

1800

1600

1400

1200

1000

800

600

400

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Lower North Shore Median Unit Prices

T

Units, Lower North Shore

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Mosman

North Sydney

Willoughby

(Source: Property Focus REINSW)

600

550

500

450

400

Mosman

North Sydney

Willoughby

Sydney General

350

300

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

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A D D R E S S

Kirribilli

RECENT LEASES

Bedrooms Bathroom Parking Un/Furnished $ Per Week

17 Elamang Ave 3 2 2 Unfurnished 1,175

Milsons Point

38 Alfred Street 2 2 1 Unfurnished 750

38 Alfred Street 2 2 1 Unfurnished 600

2 Dind Street 3 2 2 Unfurnished 980

2 Dind Street 2 2 1 Unfurnished 630

8 Glen Street 1 1 0 Unfurnished 490

12 Glen Street 1 1 1 Furnished 525

55 Lavender Street 3 2 2 Unfurnished 1,500

55 Lavender Street 1 1 0 Unfurnished 490

12 Glen Street 2 2 1 Furnished 680

38 Alfred Street 2 2 1 Unfurnished 700

2 Dind Street 2 2 1 Unfurnished 650

30 Glen Street Studio 1 0 Furnished 370

94-96 Alfred Street 3 2 2 Unfurnished 900

12 Glen Street 2 2 1 Unfurnished 605

30 Glen Street Studio 1 0 Furnished 330

48 Alfred Street 1 1 1 Furnished 600

30 Glen Street Studio 1 0 Furnished 350

North Sydney

88 Berry Street 1 1 0 Furnished 500

39 McLaren Street 2 2 1 Furnished 650

93 Pacific Highway 1 1 0 Furnished 400

88 Berry Street 2 1 1 Unfurnished 580

237 Miller Street 3 2 1 Unfurnished 600

St Leonards

15 Atchison Street 2 2 1 Furnished 650

15 Atchison Street Studio 1 0 Unfurnished 400

48 Atchison Street 1 1 0 Furnished 450

19-23 Herbert Street 2 2 1 Unfurnished 500

15 Atchison Street 1 1 0 Unfurnished 430

1 Sergeants Lane Studio 1 0 Furnished 450

1-3 Albany Street Studio 1 0 Unfurnished 370

46 Albany Street 3 2 1 Unfurnished 620

19-23 Herbert Street 2 2 1 Unfurnished 500

Wollstonecraft

36 Milner Crescent 3 21/2 1 Unfurnished 620

Homebush West

34-36 Courallie Ave 2 1 1 Unfurnished 410

34-36 Courallie Ave 1 1 1 Unfurnished 340

Sydney City

317 Castlereagh Street Studio 1 0 Unfurnished 330

Roseville

185 Pacific Highway 2 2 1 Unfurnished 420

Crows Nest

187 West Street 2 1 1 Unfurnished 420

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Bondi

40 Penkivil Street 2 1 1 Furnished 520

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Sold for $505,000

RECENT SALES

15 Atchison Street, St Leonards

Nexus is a modern and popular building near St Leonards’ plaza and railway

station. This two bedroom unit with has a small sunroom at the rear and quiet side

of the building with two modern bathrooms, Fully equipped kitchen and a secure

parking space.

49 Spit Road, Mosman

This two bedroom apartment (second bedroom-study) is fully renovated with polished

floorboards, high ceilings, gourmet kitchen, good sized master bedroom

with built-ins and one stylish bathroom. Internal laundry. Convenient location,

walk to everything – bus, shopping centre, restaurants and cinema.

Sold for $470,000

Sold for $750,000

15 Atchison Street, St Leonards

Modern two bedroom two bathroom fully furnished apartment plus study with security

parking, internal laundry, built ins, and a north facing balcony. Access to gym

facilities. Located in the Nexus building next to the heart of St Leonards CBD

and nearby Crows Nest Shopping Strip.

Sold for $500,000

37 Glen Street, Milsons Point

Sunsets in winter are especially enchanting from this classic two bedroom,

two bathroom apartment at Peninsular Towers. Quietly positioned overlooking

Lavender Bay and sparkled at night with North Sydney lights. Open plan living area

large enough for a study desk, full dining table and comfortable lounge spilling onto

the balcony. Secure parking, walk to station and ferry wharf.

Sold for $600,000

77 Berry Street, North Sydney

Direct northern aspect from this sun soaked large apartment. good sized

living room and bedroom with access to balcony, modern kitchen, gas stove, DW,

reverse cycle air condition, internal laundry, one security parking plus lock up storage,

total 86sm on title. 24h concierge, pool, gym, sauna, walk to shops, trains,

restaurants

55 Lavender Street, Milsons Point

Modern Mirvac building fully furnished with the latest designs and features. One

bedroom apartment with balcony overlooking Clark Park and Lavender Bay.

Superb kitchen, combined dining and lounge. Internal laundry, A/C. . Minutes to

transport and local shops.

Sold for $517,500

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Sold for $670,000

7-13 Parraween Street, Cremorne

3 bedrooms over two levels, full bathroom, three balconies, modern kitchen

and bathroom, large internal laundry, air conditioning, security building with one

car space.134sqm on title. Walk to Neutral Bay shops, schools, restaurants, buses

and Hayden Orpheum cinema.

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Our Staff

John Tower, Property Valuer & CEO

A licensed real estate agent and Property

Valuer, John’s approach is handson,

providing long-term service and

commitment to his clients. His qualifications

include a Diploma in Valuation, an

Advanced Diploma in Real Estate

Agency and a Masters degree in Marketing

Management.

Ewald Ler’che, Sales-Office Manager

Moved to Real Estate from a physical

education background where he won

several championships, Ewald is now a

sales manager at the Milsons Point

branch. He has been with Tower and

London for 2 1/2 years and has ten

years experience in the real estate industry.

Ryan Christoffersen

Senior Property Manager

Ryan has been working in Real Estate

since he was 20 years old. He is experienced

in all facets of Real Estate from

Residential Sales to Commercial Leasing

and Management. Ryan believes in

a personal hands-on approach and

treats all of his management as if they

were his own investments.

Jaclyne Henderson , Property Officer

Jaclyne has a background of 5 years

experience in Retail Management and

Administration. Having made the move

into Real Estate in late 2008, she is

now undertaking Certificate III in Property

and intends to have a fulfilling career

in the industry.

Jennifer Jiao, Accounts

After arriving in Australia in 2000,

Jennifer completed a Bachelor of

Accounting from Sydney University and

Central Queensland University. She

joined Tower & London in 2007 with a

history in customer service and is now

looking after trust accounts while

undertaking her CPA.

Coco Huang, Residential Sales

Following a successful retailing career,

Coco has made the move to Real Estate.

Currently studying part time to

complete her Real Estate Licensing

course; and looking forward to a long

and rewarding career in residential

sales. Coco speaks fluent Mandarin

and Cantonese.

Kim Phuong, Senior Administrator

Astrid Rumata, Administrator/Reception

With experience in customer service,

Kim joined Tower & London in early 2001

as an Administrator & worked her way to

becoming the manager of the St Leonards

branch. She has completed a

Bachelor of Commerce, majoring in Tourism

Management.

Astrid joined Tower & London after moving

from Hotel & Tourism background.

She has completed a Diploma of Advertising

and Certificate II in Hotel & Tourism

Management and now has develop a

keen interest in the property industry.

She is currently employed as an administrator/receptionist

for the Head Office in

Milsons Point.

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Our offices

Head Office in Sydney

Port Jackson Tower

38 Alfred Street,

Milsons Point, NSW 2061

Phone: (612) 9956 6500

Fax: (612) 9956 6522

Hong Kong Branch

Suite 1905 Lippo Centre Tower

2, 89 Queensway,

Admiralty Hong Kong

Phone: (852) 2918 8788

Fax: (852) 2918 9808

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Useful Resources

Tower & London

http://www.towerlondon.com

Department of Fair Trading

http://www.fairtrading.nsw.gov.au/

P: 9895 0111 F: 9895 0222

Consumer, Trader & Tenancy Tribunal

http://www.fairtrading.nsw.gov.au/cttt.html

P: 1300 135 399 F: 1300 135 247

Real Estate Institute of NSW

http://www.reinsw.com.au/

P: 9264 2343 F: 9267 9190

NSW Department of Lands

http://www.lands.nsw.gov.au/

P: 9228 6666

Office of State Revenue

http://www.dtf.wa.gov.au/cms/osr_index.asp

P: 9262 1100 F: 9226 0834

Reserve Bank of Australia

http://www.rba.gov.au

Real Estate.com.au

http://www.realestate.com.au/

Domain.com.au

http://www.domain.com.au/

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