Moorooka #1 HOTSPOT for 2009.

Before we get down to the serious side of business, try this great recipe for a quick easy snack, morning, noon or night.

SUMMER TURKISH BREAD



12 slices of Turkish bread
3 large roma tomatoes,
quartered and deseeded
4 basil leaves, shredded,
2 tablespoons virgin olive oil
1 small salad onion finely chopped
Freshly milled pepper and salt to tast
Parmesan cheese, grated.

Heat oven to 180 deg and lightly toast bread slices.dice tomatoe's and place in bowl. Add basil, oil, finely chopped onions and salt and pepper, stir to combine. Spoon mixture onto the toasted Turkish bread and sprinkle with parmesan cheese. Bake in oven until golden brown and serve.
ENJOY.

Now down to business...

Key Brisbane Southside suburbs are listed in RP Data's 2009 Property Hotspots Report Predictions, proving the strength of the region's property market.


RP Data's leading property analysts - Tim Lawless and Cameron Kusher - delivered their forecast about 4 weeks ago to present opportunities in 2009 for new buyers and investors. The hotspots selection is based on 'strategic affordability' - homes with reasonable price tag that are well serviced by public transport, arterial roads and the necessary amenities such as shopping, schools and health care facilities - in both the housing an unit markets.

The Southside suburbs expected to be strong performers over the next 12 months include: SALISBURY, MOOROOKA, COOPERS PLAINS, and ROCKLEA in the housing market and ANNERLEY, GREENSLOPES AND STONES CORNER in the Unit market. These suburbs boast the characteristics sought out by buyers, offering also great parks, major shopping centres, restaurant precincts, quality schools, close to SE Freeway plus much more.
As you know we service all these area's and would be happy to have a chat with you if you are a Buyer or a Seller.

MORTGAGE TRAPS TO AVOID

Taking out a mortgage will probably be one of the most significant financial decisions you make in your lifetime. So make sure you understand just what you're getting into.

Fees
When it comes to home loans, fees can quickly add up. It pays to investigate just what upfront and ongoing charges you will be up for. Consider everything for the life of your loan from application costs and mortgage insurance to monthly, redraw and early exit fees. Lenders may charge an application fee of $600 or more, a valuation fee (often more than $300) and a loan settlement fee of $200 or so. Also, many lenders will insist on a mortgage insurance, especially if you are borrowing more than 80 percent of the value of your new home. This can cost as much as one percent of the loan amount.

There may be a fixed monthly fee or other charges relating to using the loan and depending on your contract, the lender may be able to increase these costs at any time. Early exit fees vary between lenders and come in different disguises, such as "deferred establishment fees". These fees become significant should you wish to pay off your loan or refinance with another lender. Always ask your potential lender for specific early-exit fees and cost. Remember, if you can negotiate to reduce any or all of these fees up front, it will help to reduce the size of your loan. If you aren't a good negotiator, you might want to use a morgage broker to help secure a better deal.

Redraw/extra payment limitations
Some loans will restrict you from making extra repayments into your mortgage account. This is significant in that any extra money you put into the loan will help to reduce interest and can have considerable tax advantages. Other loans allow you to make extra repayments but have limitations when it comes to redrawing that money. Check whether you'll be required to apply in writing, how long it might take for approval, and if there are any costs involved.

Honeymooon Loans
Borrowers should always be cautious when it comes to honeymoon loans. They may sound competitive and be so for the first six to 12 months of the loan, but you may end up with a rude shock when they revert to a much high rate that can eclipse the standard vaiable rate.

Interest Rates
Don't accept interest rates at face value - see if you can talk the lender into a lower rate. After all, any reduction can mean huge savings over the life of the loan. Also when it comes to fixing your interest rate, the biggest factor you need to be aware of is the high break costs should you wish to revert to a variable rate. This involves you having to pay for all the "lost" interest to the lender if you had paid the high rate through to the end of the fixed term and can add up to considerable amount of money.

Sign on the dotted line
And lastly, don't sign anything you don't fully understand. If you are in doubt, get independent legal or financial advice. Finding the right mortgage may take some time, but securing the right one for you can save a lot of money and stress in the long term.

1st home buyers mortgage evening

Leah Blackford is our Personal Lending Manager from Loan Market and is holding an evening at the end of Feb 2009 at our Annerley Office for first home buyers.
As you know I don't normally recommend Brokers, but I have worked with Leah for the past few years and I have been very impressed with her work ethos and ability to communicate with clients on all manner of options for their finance both for real estate and personal loans etc.

Over my many years of dealing with Brokers, I have found many of them similar to Real Estate Agents, whilst, most are good, some are not so good promising the Buyer all sorts of things they cannot deliver, causing lot's of stress for the Seller, Buyer and of course the agent. I think Ray White actually own Loan Market, I am declaring that in case I end up on "Media Watch"!! For any information you require about our 1st home buyer evening call me on 3426 8309 or 0411 664491.

What Shakespeare did say

ACT 4, Scene 2
Scene 11. "KING JOHN'S palace, Salisbury.

Therefore, to be possess'd with double pomp,
To guard a title that was rich before,
To gild refined gold, to paint the lily,
To throw a perfume on the violet,
To smooth the ice, or add another hue
Unto the rainbow, or with taper-light
To seek the beauteous eye of heaven to garnish,
Is wasteful and ridiculous excess.....

(An example would be putting heavy makeup on a
beautiful young girl.)

As you can see Shakespeare never actually said the words "To gild the Lily", but like so many other things over many many years has been mis quoted, and so was born the phrase "To gild the lily."

Comments from my crystal ball

What confusing times we live in, we need a Crystal Ball to know the answers to some of your questions. "Is the New Year the right time to buy our first home, upgrade, stay put, or downsize." We are asked time and time again to help people with these huge and important decisions, so we have done some research for you. HAPPY READING.

To hopefully help you sort the wheat from the chaff we list some extracts from various sources including Andrew Carswell "The Sunday Telegraph and Stephen Johnson "AAP" among others.

Stephen says, "The first home buyer share of the mortgage market has risen to a seven year high in response to big rate cuts and generous grants to new home owners. Some 11,665 first time borrowers made up 23.6 per cent of the home borrowing market in November, the highest proportion since January 2002, a big jump from October's 19.5 per cent share, official data showed.

The Australian Bureau of Statistics (ABS) data also showed that overall home loan approvals rose for the second straight month in December while the popularity of fixed rate loans dived to a record low. The mortgage market also boosted by the Reserve Bank of Australia's (RBA) decision to slash interest rates by one percentage point in October and another .75 basis points in November, followed by one percentage point in December taking the cash rate to a six and half year low of 4.25 per cent.

Expectations of more interest rate cuts appear to have affected the popularity of fixed rate home loans, which fell to a 2.5 per cent market share in November - the lowest proportion since the ABS starting collecting this date in 1991.
"Confidence in the property market is still a bit shaky and the economic uncertainy is still fairly high.

IS IT THE BEST OR WORST OF TIMES FOR REAL ESTATE? Andrew Carswell sifts through the evidence.

Many property fanatics are proclaiming 2009 as the best year in decades to buy a new home. But others vehemently disagree, arguing that house prices are due for a sharp correction.

At the beginning of 2008, 68.9 per cent of respondents for the Mortgage and Finance Assoc. of Australia/Bankwest Home Finance Index believe property prices would rise in the coming quarter.

The latest figures, out this week, show only 14.6 percent of respondents retained this optimism in the first three weeks of 2009, with 60 per cent believing we're heading for a decline in property values.

Can 60% of Australians be wrong?
Many property experts say: yes they can.

However, Residex property analyst John Edwards said the biggest factor weighing on property prices is unemployment, currently sitting at 4.4 per cent, unemployment has been tipped to rise as high as eight per cent in 2009 as the global financial crisis starts to hit home.

If those levels of unemployment become reality, house prices could slide.

"The areas that are in close proximity to industry/manufacturing areas or small business, probably have some more suffering to do" he said. Despite job uncertainty, Mr Edwards is positive on house values from the major Cities around Australia and swears by the simple motto: "As long as you pay the right price for the property, it is never the wrong time to buy". I totally agree with him.

"In every year, no matter what, there will be area's of the city that will grow well, and there will be, even in boom times, areas that do fairly poorly," he said.

"So it's not the wrong time to buy property in Brisbane; in fact, it's a good time, because now is the time when you are going to find some bargains. "If you've selected properly and in the righ area, you will not see a fall in value. They may stagnate, but not fall. Other's however, dismiss such optimism as naive. Mr Edwards' argument certainly does'nt sit well with notorious bears Steve Keen and Gerard Minack.

Both men - a professor at Western Sydney University and a Morgan Stanley economist, respectively - have predicted the sky to collapse on housing prices. Their conservative estimate is an accross the board fall of 30 per cent.

However, Shane Oliver, chief economist at AMP Capital, says the severe downturn in housing construction - marked by a whopping 34 per cent fall in residential building approvals in 2008 - should ensure any falls aren't quite so steep. "I've been forecasting 10% falls throughout the year" he said. "I don't think we are going to see the 30 to 40 per cent falls that some have been predicting, because Australia isn't going into a depression and we have an under supply of housing in Australia.

"Interest rates have made a mortgage more affordable, and the first home buyers' grant is helping, but the flipside is that unemployment has only just begun to rise and the rise will be substantial. Normally, when unemployment rises, it puts a big dampener on the housing market." Oliver also said the period of high unemployment during the 1990's put a significant downward pressure on housing prices.

Frighteningly, he now predicts 2009 will bring even bigger decreases because the household debt, relative to income levels, is now four times higher that in the 1990's. "Economic uncertainty has caused a decline in consumer confidence," he said.

In the past 12 months, the average days on market in the Brisbane metro area has increased from 30 to 50 days. "This indicates that buyer phychology is changing, as they have a more considered approach to transactions. But I believe this buyer sentiment will shift in the coming months, as property once again becomes the preferred asset to creating wealth, however, stay within a 10 or 12 klm radius of the Brisbane GPO.

Ed Logue AAP says "New Year 'perfect' time to buy your new home. "Australians could find 2009 an opportune time to buy property, but they should not expect a swift recovery in housing prices, he said.

Loan Market Group executive director John Kolenda says: "Mortgage holders in the coming year are likely to benefit from the lowest variable interest rates ever offered in Australia as the cash rate could fall to 2.5 cer cent."

He also said. "House prices have been sluggish across the eight capital cities in the past two quarters, down 1.8 per cent in the September quarter, this followed a 0.2 per cent drop in the June quarter.

Mr Craig James from CommSec (chief economist)said housing prices are tipped to rise 3 to 5 percent this year due to an undersupply of housing.

The peak home building body, the Housing Industry Association (HIA) chief economist Mr Harley Dale said, we forecast a recovery in the property market in the second half of 2009. We will be some months through 2009 before these lower interest rates translate into a significant stimulus to housing sector expenditure.

If you would like to discuss any of the above regarding selling you property, buying a property or any other concerns you may have please give me a call on 07 3426 8309 or 0411 664490 and I would be happy to meet with you. I HOPE YOU ALL HAD A GREAT CHRISTMAS AND NEW YEAR.