Inflation figures support case for February rate cut

The Australian Bureau of Statistics recently released its official inflation data – the Consumer Price Index – for the December 2011 quarter.  The figures showed that the Index was unchanged over the quarter, as compared with a rise of 0.6 per cent in the September quarter 2011.   

According to the ABS, the quarter saw price increases in domestic holiday travel and accommodation, rents, telecommunication equipment and services, beer and automotive fuel.   

These increases were balanced by price falls in fruit, pharmaceutical products, vegetables, audio, visual and computing equipment, international holiday travel and accommodation and motor vehicles. 

From an annual perspective, the ABS noted that the CPI rose 3.1 per cent over the year to the December quarter, as opposed to the 3.5 per cent increase in the year to the September quarter. 

This inflation data is eagerly anticipated and reported, as it is a key consideration of the Reserve Bank of Australia when it deliberates on the official cash rate. 

Such a result whereby the CPI was unchanged helps to support the case that the Reserve Bank could move to cut interest rates for the third consecutive month at its February meeting to be held next week.

I will certainly be watching for the Reserve Bank’s decision as I’m sure will many prospective home buyers and current property owners and investors

Professional building inspections – an important step in the buying process

For many Australians, the purchase of a property is one of biggest, and likely most expensive, commitments made over the course of a lifetime.  It is for this reason that it is important to take certain steps to eliminate as much uncertainty as possible from the buying process. 

I have always held the opinion that professional building inspections are an important step in the property buying process.  By having a qualified professional evaluate a property under consideration you will likely find yourself in a better position to make an educated and informed decision about the value you feel comfortable assigning to a property and whether or not to go ahead with the purchase. 

A thorough building inspection prior to the purchase of a property can reveal much about a dwelling that may not be immediately visible including potential issues that could result in the need for repairs in the future.  Having a professional inspection could thus be considered a safeguard – giving you the information needed to feel comfortable in your purchase decision. 

In addition, a property inspection can also highlight the attractive aspects of a property, such as superior construction, the use of good quality materials, and other excellent features associated with the dwelling.   

It must be remembered that the resulting report from the inspection you have conducted should be taken in the context of the property’s age.  Not surprisingly, as a property gets older repairs and maintenance may likely be needed, and these should be considered when making the final decision to go ahead with the purchase.  

I have come across buyers in the past who feel comfortable conducting a building inspection themselves in order to avoid the additional cost it adds to the overall purchase of a property.  However, unless the person conducting the inspection has the appropriate and necessary qualifications and insurance in place, it is recommended that a professional be appointed to the task.   

There are numerous, qualified property inspection companies operating all around Australia.  A good starting point to find a reputable, professional business to use may be to enquire with a real estate agent who should have a list of suggested contacts they have worked with previously.  Again, it is important to make sure the professional appointed is qualified and insured appropriately.  

Ultimately the decision as to whether or not to have a professional building inspection conducted prior to the purchase of a property is completely up to you – the buyer.  However in the long run, the added comfort of knowing the true state of the property you are buying – both the positive aspects and possible issues – in the context of the property’s age, helps to ensure you are comfortable with the purchase price and reduces the potential for any surprises to arise in the future. 

Whether you end up going ahead with a property purchase or not on the basis of the results of the inspection, the important thing is that you had the necessary information at hand. 

For any further information about how to go about having a professional inspection conducted on a property of interest, please feel free to contact any of the CENTURY 21 offices around the country for accessible, clear and expert advice

2012 off to positive start for residential real estate with dwelling approvals up

The Australian Bureau of Statistics (ABS) recently released its building approval data for November 2011 – a key statistic for the residential property industry as it provides an indication as to how many private sector residences have been approved for construction. 

 The ABS data for November showed an uplift in dwelling approvals, which the team at CENTURY 21 believes to be welcome news for the Australian property market as we commence 2012. 

 According to the ABS, the number of residential properties approved nationwide increased by 8.4 per cent in November.   According to CENTURY 21 Australia Chairman and Owner, Charles Tarbey, who commented on the data, this increase is pleasing, particularly given the declines seen over the previous months of September and October. 

 While advising that it could not be ignored that approvals remain 18.9 per cent lower than they were a year previously in November 2010, Charles commented that the data is positive news for the market and investors in the New Year. 

 Studying the data further, it can be seen that the national increase was largely driven by increases in the states of Victoria (up 39.9 per cent), Queensland (up 6.6 per cent) and New South Wales (2.0 per cent).  A decline in approvals was seen in Western Australia, Tasmania and South Australia (in seasonally adjusted terms). 

 Charles noted that it will be interesting to see the movement of approvals into 2012 as we start to get more of an idea about the market reaction to the Reserve Bank of Australia’s cut to interest rates over November and December. 

 All in all, such upwards movement in building approvals is pleasing to see and hopefully market conditions over the year will support the continuation of this lift – helping to put Australia in a better position to meet the projected demand for housing moving forward.