Carbon tax effects the cost of new homes!

The Herald-Sun commmentator, Terry McCrann, notes the Carbon tax will effect a wider range of goods and services than the Goods and Services Tax. Given it includes products like fresh food, education, books, medical expenses, charities all were exempted from the GST tax. The Carbon tax also starts high at $23 a tonne and then grows at a compounding pace of eight percent a year. The effect of this new tax McCrann argues, is very like raising the GST tax from 10% to 15% over time. The Housing Industry Association, argues this will raise the cost of new house and land packages by $6,000. I maintain the diesel section of the tax will have a larger disproportional effect on the subdivision and developmental cost of land. I suggest the real cost of new home and land packages may be even higher!

More Help for First Home buyers

Announced with the last state budget, the Stamp Duty rebate, is being progressively rolled out, initially as a 20 percent reduction, with a further 10 percent to be knocked off in January 2013 and 2014 respectively and then a final 10 percent reduction in September 2014, bringing the total rebate to 50 percent of the stamp duty, usually paid by first home buyers. It applies to homes that cost or are built for $600,000 or less.

The Stamp Duty rebate, which must be applied for after settlement, complements the existing first home owner grants. Under this scheme, buyers are eligible for a First Home Buyers grant of $7,000 when purchasing a home up to the value of $750,000. If the home is newly built and its price does not exceed $600,000, there is an additional bonus of $13,000.

Buyers in a regional area, in addition to the previous two figures, will get another bonus of $6,500, if the price or construction does not exceed $600,000.

State government figures show that more than 28,000 people claimed the first home owner’s grant for an established or new home in the last financial year alone.

Earlier this month, a spokeswoman for Treasurer Kim Wells, told The Sunday Age, that the Stamp Duty cuts had assisted more Victorians to buy their first home, with government figures showing” 1,428 buyers had collectively saved more than $3.96 million in stamp duty under the program so far.”

However, Greville Pabst, chief executive of the WBP Property Group, a prominent Valuers group, says the Stamp Duty concessions so far appear to have had ”little impact” on the number of first home owners entering the market.

Melbourne Suburbs Home equity levels

I am reading about the relative equity levels of some Melbourne suburbs. It is interesting to note, that some have much higher levels of home owner equity than others. This could be indicative of a much higher ability to meet home mortgage repayments during any financial stress period. The highest equity levels are as follows, homes with more than a fifty percent equity, Boroondarra 80.4% Eastern middle Melbourne suburbs, 79.9%, Eastern outer Melbourne 77.7%. While, the suburbs with low levels of equity include, Inner Melbourne, 65.3%, Melton/Wyndham, 59.2% and South Eastern outer, 65.8%. Simplistically, I say, these ones with a lower equity level, are areas where home owners may find it harder to hold their homes, in any financial crisis time. So the Eastern suburbs, are the safer places for home renovating to hold a home for the long term! Thats where the big money is made by compounding growth over the long term.

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Lower interest rates for Fixed loans

In recent days, the home loan rates for fixed term three and five year loans have been reduced. The ING Bank, St George Bank, Westpac and Credit Union Australia have all cut their interest rates. This reflects the latest monthly fall of 100 points in the professional Futures Interest rates markets, as the world adjusts to a slower growth outlook. The St George Bank three year rate is now 6.39%, CUA 6.34%, ING 6.29%, Suncorp 6.29%, Citibank 6.29% Westpac 6.64%. Banks are making many less home loans, given the volume of home sales has fallen by between close to 60% for 2011, compared to 2010 and 2009.
The direct application websites, offer attractive rates direct over the Internet at U Bank, One Direct, Homepath, Westpac and the Commonwealth Bank, also have direct loan application websites. Direct application eliminates the margin of the Mortgage Broker, of close to 30 points. Recent cut in November of the cash rate from 4.75% to 4.5% and Futures markets indicate likely future falls in interest rates of 100 points over the coming 2012 year. The prospect of slower economy growth in Europe suggest interest rates will remain weak to falling, for lower levels in 2012.
Latest news from Europe indicates a slower economy in Italy, Greece and Spain.

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Building your Home’s Street Appeal,via easy home renovating!

Something like 90% of real estate agents, say a home buyers first impression at the front entry is important in their ability to sell the home. Some agents say as many home buyers have declined to even inspect a home, purely on the basis of is poor “Street Appeal”.

A top ten list of favourable factors would include-

1  Attractive windows and doors can reduce energy costs and highlight the home. The front door and entrance are  places of high impact.

2  All renovations should highlight the home’s original style, as historical features impact on value.
3  Custom features and a feature front door are important.

4  A feature window and good natural light are favourable factors. Some 75% of real estate agents, say that the amount of natural light is important in the appeal of a home.
5  The garage is often a prominent, first feature. Therefore make sure yours matches the home and entrance area.
6  Have your garden in the best possible presentation order, with bushes trimmed, lawn mown, edged and some plants in flower.
7  Keep your doors and windows in a consistent colour, stick to a theme.
8  Inside the home, have window treatments of the curtains and blinds in attractive order.
9  Have your windows washed and cleaned, to optimise the view.
10 Consult with your real estate agent and pay for a home staging stylist, they will be well worth the money.

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