N E W S L E T T E R I S S U E T W E LV E 2 0 0 3
w w w. p r o f e s s i o n a l s . c o m . a u
Surge in Older Homes
During the past six months, the Professionals Real
Estate Group has recorded a surge of interest by
homebuyers purchasing older style properties for
renovation in the outer Perth suburbs according
to Steve Wright, CEO of the Professionals Real
Mr Wright said that the 'fixer- approvals during the December "Rising land values in these
up' homebuyer market has 2002 quarter which is a 59% rise outer Perth areas are now
traditionally been focused on the compared to the December 2001 making it financially more
inner and near city areas of Perth. quarter. attractive for homebuyers to
renovate older properties.
"During the second half of 2002 "The Hills areas is also
and early 2003, the experiencing strong activity in "In particular, there is now a
Professionals Real Estate Group home renovations with the ABS growing number of investors
offices has sold a large number figures showing that during the who are purchasing older style
of homes to people in the outer December 2002 quarter properties in these outer Perth
suburbs of Perth for the purpose approvals totalling $1.8 were areas for renovation purposes
of home renovations. given in Kalamunda which is a and then renting these
"This is underlined by ABS 93% increase compared to the refurbished homes to achieve
building approvals figures which December 2001 quarter. higher rental returns.
show in the Rockingham area
"Gosnells is also recording "The rental market in many of
during the December 2002
stronger activity in home these outer Perth suburbs is still
quarter renovations totalling
renovations with home very strong and home prices are
$1.5 million were given approvals
renovation approvals totalling still very competitive which
which is a 72% rise compared to
the December 2001 quarter. $1.1 million during the means that these astute
December 2002 quarter which is investors can achieve very high
"In Kwinana, home renovations a 45% rise compared to the returns on their refurbished
totalling $1million were given December 2001 quarter. properties," he said.
In This Issue
Surge in Older Homes for
Harvesting the Equity in Your
New Safety Proposal by State
Proud to be a Corporate Partner of the
Strong Growth in
National Breast Cancer Foundation
Pink Ribbons available from all Professionals offices Win a Trip to Hollywood ..........4
Harvesting the New Safety
Equity in Your Proposal by State
Home Mains-powered smoke alarms will have to
be installed in all homes before they are
The choices you make over time about sold under proposed changes being
the equity in your home will determine considered by the State Government.
the financial benefits you derive from
Emergency Services Minister Michelle Roberts today
homeownership. Most people have announced the findings of a review by the Fire and
some equity in property. Emergency Services Authority (FESA) into the
requirements for installing smoke alarms in the home.
Seventy per cent of the population are homeowners.
About half of all homeowners own their homes Mrs Roberts asked FESA to conduct the review
outright and the other half are paying of a home loan. following the death of a mother and her son in a house
The degree of equity you have in your home depends fire in the northern suburb of Craigie earlier this year.
on the size of your mortgage. If you do not have a
mortgage then you have 100% equity in your home. If “The onus would be on
your mortgage is equal to half the value of your home landlords to ensure smoke
then you have 50% equity in you home. The larger the
equity in your home the larger is the amount of money alarms are fitted before a new
that is available for investing or personal expenditure. tenant walks through the door.”
The most often discussed means of accessing the
"While the Coroner is still to bring down his findings
equity in your home is to take out a home equity loan.
about the cause of that terrible double fatality, I believe it
Most financial institutions will allow you to borrow a
was necessary for FESA to conduct a review of smoke
significant proportion of the equity in your home.
alarms in Western Australia," she said.
These funds are often used to purchase investment
properties. This is a smart move because the rental The Minister said while house fires had caused the deaths
income from the investment property will help to repay of 21 people over the last three years in WA, about a third
the equity loan. And in many instances the extra funds of all homes still did not have a smoke alarm installed.
required to help repay the loan, in addition to the
"We have to take action to save lives," she said.
rental income, may be used to reduce your taxable
income. "With more than 70,000 homes sold in WA annually, I
believe that a point-of-sale approach to installing smoke
There is also a growing interest in home equity loans alarms will address this shortfall.
from retirees who use the extra funds to top-up their
existing retirement funds like the pension or "It's an approach that I believe should also apply to rental
superannuation. properties when they are coming up for a new lease.
"The onus would be on landlords to ensure smoke alarms
Another way of exploiting the equity in your home is
are fitted before a new tenant walks through the door."
to sell off a part of your property that you no longer
required. This has been a common practice amongst Mrs Roberts said under current regulations, smoke alarms
farmers. Now it is also common in the residential real had to be mains-powered in all new homes and homes
estate market in places where properties are situated undergoing significant renovations.
on large blocks of land that can be split into smaller lots "All WA homes should have a smoke alarm and for an
for the construction of home units. investment of as little as $10 people can have peace of
Apart from freeing up funds, sub-dividing solves other mind that they had taken a life-saving precaution against
problems particularly for older people who a fire tragedy," she said.
own large homes in high value areas that "But only working smoke alarms save lives. Today - on
require substantial maintenance. Change Your Smoke Alarm Battery Day - fire authorities
are encouraging people to check their smoke alarms and
replace the battery.
"The message is clear, 'don't gamble with the lives of
"By replacing a battery, people will have the essential
time to get clear and alert fire services."
"Nothing is interesting if you are not interested"
Disclaimer: The comments provided are of a general nature only and you should obtain specific advice in regards to your own specific circumstances before acting on this advice. The Professionals Companies, members, directors, offices and employees do not give any warranty as
in South West
to the accuracy, reliability or completeness of any information provided in this newsletter. The Professionals, recommends that you seek advice from your own financial, taxation and legal advisors before entering into any financial or other transaction.
The South-West housing market is poised for sustained growth over the next decade
because of a surging population.
Already, more than 123,000 people live in the South West increase from 3,000sqm to 5,000sqm the size of a new
region and with a growth rate three times that of the $19 million warehouse in Busselton because of market
national average, the South West has one of the fastest research revealing impressive population growth in the
growing populations of regional Western Australia. region.
It is anticipated that by 2011 that 157 300 people will The confidence in the housing market is underlined
make the region their home. that in some parts of the region such as Dunsborough,
property prices are now comparable to the blue-chip
More people are moving to the South-West of the State areas of Perth like Dalkeith and Peppermint Grove.
because of growing employment
opportunities in the region. It is no coincidence that the
Professionals Dunsborough office
The Department of Local Government was the most successful office of our
and Regional Development estimates, entire Group throughout Western
for example, that the South West's Australia last financial year with the
gross regional product was $4.6 highest gross sales.
billion in 2000/01.
It is also no coincidence that new
There were more than 7,800 home building activity in the region
business locations within the South is also at record levels with $125
West Region, with over one-third of these operating in million being committed to new homes in the region
the agriculture, forestry and fishing industry sector. during the December 2002 quarter because of the
strong demand for accommodation in the region.
This strong local economy is resulting in a low
unemployment rate with the unemployment rate in the The Professionals Real Estate Group projects that home
area falling to just 5.5% by the end of the last financial sales will continue to perform strongly during the
year. coming year in the region and that many parts of the
South-West area should enjoy home price increases of
The growing number of people in employment means
more than 10%.
that there is now a strong local demand for housing in
the area with the Professionals 8 offices located The growing equity levels of home owners in the area
throughout the region reporting very strong home sales is also encouraging more local people to invest in local
to local residents during the past 12 months. real estate and this local investment market should give
this regional housing market a further boost during the
Confidence in the region is also increasing and this has
been highlighted by the recent decision by Bunnings to
Population Growth in Western Australia
Australia's estimated resident population at June 2002 was 19.7 million people, an increase
of 249,500 people over June 2001. This represents an annual growth rate of 1.3% slightly
higher than the average annual growth rate of 1.2% for the five years to June 2001.
Three states recorded annual growth rates greater than Australia's overall
“There is a strong growth rate in 2001-02. These were Queensland which increased by 2.2%,
Victoria and Western Australia by 1.4%.
population growth and There is a strong relationship between population growth and property
values and this is supported in the latest population survey. Apart from Perth,
property values…” the fastest population growth centres in the to 2001 were Mandurah, the
remainder of the south west of WA and the Kimberly.
"The best preparation for tomorrow is to do today's work superbly well'.
People who have ever wished to visit the factory of dreams in the United States -
Hollywood - now have the opportunity through the latest national listings campaign
being promoted by the Professionals Real Estate Group.
Local homesellers have the chance of winning a lists their home with the Professionals qualifies for two
fabulous holiday in Hollywood, USA, for two people by entries into the competition.
entering the latest Professionals home listing
competition. "The total value of this fantastic holiday for two people
is nearly $7,000.
The two lucky winners will receive a blockbusting
holiday in Hollywood and as part of this movie star "The Professionals Real Estate Group anticipates that
package trip they will enjoy a full day tour of the there will be strong interest in this competition
fantastic Universal studios, a celebrity tour of the homes following the huge success of a national listings
of the rich and famous and a visit to the legendary walk competition held during 2002 which had a major prize
of fame. of the Safari holiday to South Africa. The prize was won
by a Melbourne couple.
The winners will have the opportunity of visiting some
of America's most famous icons such as Beverly Hills, "Theme holidays are becoming more popular and we
Rodeo Drive and Venice Beach. expect a very large number of entries from local
residents for this wonderful holiday to Hollywood.
According to Steve Wright, group chief executive
officer, homesellers who receive an appraisal from the "In addition to the major prize of Hollywood, there will
Professionals Real Estate be super saver movie passes for the runners-up in each
Group will automatically State."
entered into the national
"Prospective homesellers "Our business life is not to get ahead of
can double their chance of others, but to get ahead of ourselves - to
winning if they decide to break our own records, to outstrip
list their home with the
Professionals because yesterday by our today".
anyone who gets an
STEWART B. JOHNSON
appraisal and subsequently