Real Estate News

Spring Real Estate Market Update

We are pleased to report in this market update that the Spring real estate selling season has not let us down this year. There has been a consistent and strong level of enquiry from potential buyers – our only grievance being a lack of stock to satisfy the demand. We are particularly desperate for houses priced from $700,000 to $1,300,000. 
 
There is still a lot of enquiry coming through from first home buyers which has led to consistent demand in the unit market. Although the first home owner grant was reduced in October, it is still a favourable $10,500 plus stamp duty concessions.
 
Buyer demand for houses and units has pushed property prices up and they are selling very quickly. We estimate that unit prices in the lower to medium price ranges have risen by 10-15% and house 5-10%.  The top end still remains sluggish.
 
Over the past year it has been the first home buyers that have largely buoyed the Sydney real estate economy. Generous Government incentives, historically low interest rates and a tight rental market saw many people jump into home ownership for the first time. Other segments of the market have been a little more hesitant. As news begins to circulate that we appear to have come out of the global recession somewhat unscathed, consumer confidence has returned to the broader market. Even a quarter percent official interest rate rise at the beginning of October couldn’t dampen people’s spirits. Our only hope is that, if the Reserve Bank does make additional rate rises, they do so by small amounts. In our experience, people seem more content with a few small rate rises as opposed to one big one. 
 
One of the main things stopping the real estate market from gaining more momentum is the vendors who are sitting on their hands and not listing their properties for sale now. Interestingly, this is not because they are worried about their financial situation, but are concerned about the shortage of available properties for sale. A common complaint we hear is “what if I sell my home and can’t find anything suitable to buy?” In a market such as this, preparation is the key. Vendors should have their home ready to sell, so if they do find a property to purchase, they can call their agent and get their home listed quickly. While there are no guarantees, most properties are selling very quickly at present so a consecutive sale and purchase can usually be worked out.
 
Something people do need to consider is that home loan approvals are taking a little longer to process at present. Previously approval could be obtained within the standard five day cooling off period, now, due to an overload of first home buyer applications and staff shortages, a seven to ten day time frame is more likely. 
If you have any questions about buying or selling in the current climate give our sales team a call for obligation free advice. 

ATTENTION POOL OWNERS

A major review of the Swimming Pool Act will require that all pools built after 1990 must have adequate fencing, including those that were previously exempt such as waterfront properties and wet-edge pools. New pools on properties smaller than 230sqm and larger than two hectares will now also require compulsory fencing. Local Councils will have the responsibility of investigating complaints and given the power to fix fences where there is a serious or immediate risk to public safety.
 
Approximately 16,000 new pools are built each year in NSW. Sadly, in 2007 12 children drowned in private pools and spas, figures that have led to the first major review of the Swimming Pools Act in 17 years.
 
Currently pools built before 1990, when mandatory child-proof fencing laws were introduced, are exempt from current legislation. The Government is considering how this law can be amended so pool fencing will become mandatory for all swimming pools.
 
* Pool fencing design guidelines are:
 
-       Pools must be surrounded by a child-resistant safety barrier separating the swimming pool from any residential building and any place adjoining the premises. They must be designed, constructed, installed and maintained to comply with Australian standards for swimming pools.
-       Fence and gate height must not be less than 1.2 metres and must not have a ground clearance of more than 100mm to ensure small children cannot crawl under.
-       Gates must open outwards and locks positioned above the reach of children. Doors and gates providing access should be kept closed at all times.
-       The pool fence should be of an adequate distance from trees, shrubs, pool equipment and other objects that may be used to climb a pool fence.
-       Above ground pools also come under pool fencing legislation.
-       Existing swimming pool safety fencing previously approved by Council cannot be removed without prior consent.
-       Pool covers are not a child resistent barrier.
-       Window and door openings must not open directly into a swimming pool area.
-       A warning sign must be displayed near the pool.
Other safety considerations all pool owners should consider include:

-       Do not leave objects near the banner that children may use to climb over fences or open gates.
-       A secure pool is no substitute for responsible adult supervision.
-       Children in or around the water must be supervised at all times, no matter what their swimming ability.
-       Children should be taught to swim at an early age.
-       Parents and carers should have adequate CPR training.
 
In respect to rental properties containing an existing pool, it is the landlord’s responsibility to ensure pool fencing complies with the relevant legislation. The tenant must not intentionally or negligently damage the pool fencing in any way, and should notify the landlord or managing agent immediately of any such damage. If the tenant wants to install a pool themselves, even small above ground pools, they should first contact the managing agent or landlord for approval and to ensure their intentions comply with existing legislation.
 
* We strongly recommend you contact your local council for all pool fencing regulations and compliance requirements in your area.
 
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