Archive for the 'Melbourne Real Estate Articles' Category

Avalon bid for Australian Formula 1 Grand Prix (Melbourne’s West)

Wednesday, March 3rd, 2010

By: David Hastie

Source: Sunday Herald Sun February 28, 2010 12:00AM  A PLAN to move the Australian Formula 1 Grand Prix to a purpose-built, $200 million race circuit at Avalon is being considered in an attempt to keep the event in Victoria.  

The Sunday Herald Sun has seen documents that pave the way for a new permanent venue after the contract to host the race at Albert Park expires in 2015.  The Confederation of Australian Motor Sport has been granted funding to conduct a feasibility study to build the state-of-the-art complex near Avalon Airport.  

The move would improve Victoria’s chance of retaining the Grand Prix beyond the current contract as well as providing a facility that would enable the state to run the race under lights.  The proposed motorsport complex would be built on some of the 1821ha of land owned by trucking heavyweight Linfox. Linfox director Andrew Fox told the Sunday Herald Sun his family was prepared to foot the $200 million to build the circuit, meaning taxpayers would not be left to shoulder the cost.  A move to a permanent track would save taxpayers the estimated $32 million each year it costs to assemble and dismantle Albert Park’s temporary circuit.  

CAMS chief executive Graham Fountain said his organisation was given about $130,000 last year by the FIA to complete a facility master plan.  He confirmed CAMS was working in partnership with Linfox.  ”We, as part of the feasibility study, will be looking at a whole range of options and opportunities for a potential venue at Avalon,” Mr Fountain said.  “Whether or not Avalon will or will not be an international grade circuit remains to be seen. But certainly it is one of many considerations as part of the master plan process.” The study will be carried out by industry experts from the UK and could begin within months.  While the Government is aware of and supports the study, Sports Minister James Merlino, who met with Mr Fountain earlier this month, said: “A decision to relocate the race is ultimately up to Government, regardless of CAMS’s findings.” GLinfox last year completed its own feasibility study to build a motorsport complex on the land.  Mr Fox said his wish was for Government to utilise the motorsport facility as a driver education centre for young drivers when not in use for competitive racing. 

“You can build a permanent facility that beyond doing a three-day event can also house driver training where the Government should be putting funds for trying to eliminate accidents of P-platers and L-platers on Victorian roads because that is money well spent,” Mr Fox said.  “I’m happy to put the capital up on behalf of the family at Avalon and build a world-class standard.  “We’re building a start-of-the-art facility for the soccer and that’s unchartered waters yet we’ve had the Grand Prix here for so many years.  “Yes, you’ll never be able to replace the views of Albert Park, but you can still build one of the best race tracks in the world.”  

Melbourne house prices up $30,000 in three months

Sunday, October 25th, 2009

By: Craig Binnie
Source from: Herald Sun
October 24, 2009 12:00AM

THE average Melbourne house price surged to a record $480,000 in the September quarter - a $30,000 rise over the previous three months.

And the number of suburbs with a median of more than $1 million reached a record 18, with Brighton East making the list for the first time.

The 6.7 per cent jump in Melbourne’s median price has been pinned on our rising population, near record low interest rates and massive cash handouts to first home buyers.

Upmarket Surrey Hills, in the eastern suburbs, enjoyed the largest increase - up 24.6 per cent, from $905,000 to $1,127,500.

Surrey Hills fell below the $1 million mark during last year’s financial crisis, but has now climbed to a new high.

Balwyn North and Albert Park also rejoined the $1 million club, while Brighton East broke through the magic figure for the first time.

• Interactive: Click here for our suburb-by-suburb price map

Pascoe Vale was second best for the quarter with a 23.7 per cent jump from $485,000 to $600,000.

Real Estate Institute of Victoria chief executive Enzo Raimondo said prices were rising across the market.

“The recovery in the property market is widespread with record demand in the city’s most prestigious suburbs as well as its most affordable ones,” he said.

Strong demand for homes in middle-belt suburbs such as Thornbury, Highett, Doncaster East and Nunawading helped push prices higher.

Regional centres including Geelong, Ballarat and Bendigo also performed well.

The median price for units in Melbourne increased by more than 5 per cent from $390,000 to $410,000 - the first time it has been above $400,000.

The bumper house prices reflect a strong auction season, which has seen clearance rates of more than 80 per cent for the past 23 weeks.

The REIV’s monthly price figures, which are not as revealing as the quarterly figures because they do not cover as many sales, show prices rose in each of the three months in the quarter.

“Individual monthly results show sustained increases over the quarter, which indicates demand will continue to push prices up through October, November and December,” Mr Raimondo said.

Pressure is mounting on the Government to increase the supply of homes and take the heat out of the market.

“This has been a very good period for vendors but is not sustainable,” he said.

“Unless there is a sustained increase in supply there will be further pressure on prices.”

The Housing Industry Association’s executive director in Victoria, Gil King, said without adequate and affordable land supply house prices would continue to rise.

Phone: 1300 735 161
www. mrsmortgage.com.au

 

 

 

 

Mortgage package deals

Tuesday, October 30th, 2007

People employed in certain professions (engineers, medical practitioners, solicitors, etc) or those earning over $50,000 per year or $80,000 plus with a partner may want to consider a professional package.

These packages offer an interest rate that is up to 0.7% lower than the standard variable loan rate for the life of the loan. Professional packs also combine all the fees into one annual payment.

Other components of a professional pack can include fee – free transactions on credit card accounts, discount insurance and financial advice.

This is to induce borrowers to consolidate a range of products with one institution.

Ensure these added services are worth your while, as you’ll pay around $300 per year in fees. Most professional packs are also only available with all the bells and whistles, so ask yourself if you really need to pay for them.

Always consult a MFAA (Mortgage & Finance Association of Australia) qualified mortgage broker who can assist you find the best package to fit your personal needs

Getting your loan approved

Tuesday, October 30th, 2007

Most banks and other mortgage providers will lend upto 80% of the value of a property without mortgage protection insurance because they perceive their money will be reasonably secure.

The balance of the loan must be made up as a cash deposit.

So what else do banks consider before they approve a loan?

In addition to a deposit, most banks will want to make sure you have enough money saved to cover additional costs, such as government stamp duty and legal conveyancing fees.

Prior to approving your loan, some banks may also require a valuation to be undertaken. The valuation will compare the price you’re paying for your property with similar properties sold in the same area.

Banks and mortgage providers will also check your employment history. Casual employment or an erratic work history is not generally well regarded. Ask your employers for a letter (on company letterhead) confirming your salary and make sure you attach a copy of this letter, together with your last three pay slips to your loan application.

If you do want to borrow more than 80% of the properties’ value, you will most likely have to pay mortgage insurance. This is an amount paid by you to a mortgage insurance company to protect the bank in the event that you default on the mortgage.

Most mortgage insurance companies will ask to see your last year’s taxation return or other documents which prove your income.

If you are considering buying a home or investment property, contact your mortgage broker to find out how much the Banks or Lenders would lend you…you may be surprised!

No deposit home loans

Tuesday, October 30th, 2007

Rising housing prices in recent years have made it very difficult for many homebuyers to save the deposit.
Lenders have recognized this and have created the no deposit loan product.

No deposit loans are generally available for new and established buildings, owner occupied, as well as for investors. To qualify for a no – deposit loan you need to be an Australian Citizen or permanent resident and currently living in Australia.

Borrowers often need to acquire lender’s mortgage insurance where the Loan to Value Ratio (LVR) exceeds 80%. Generally, the higher the (LVR) loan to value ratio, the higher the premiums. Hence the premiums on a no deposit loan can be large.

Combining stamp duty exemptions and first homeowner grants, no deposit loans allow borrowers to gain a foothold in the market based on their ability to service the mortgage rather than having the savings required to qualify for a more mainstream loan with deposit.

No deposit loans can also be a useful tool for investors wanting to take maximum advantage of leveraging.

While no deposit loans can be secured for similar rates to standard home loans, you should be aware that there is the risk of ending up in negative equity.

For example, you purchase a house for $300,000 borrowing the full amount and the property market falls by 10%, you now owe $300,000 for a property that is worth $270,000 – that’s a shortfall of $30,000 you need to recover.

As with all loans, make sure that you borrow within your means. Work out a budget, stick to it, and do not borrow more than you planned just because it is available. Also, consider the property market that you are buying into: are the prices rising or falling?

Plan to repay the loan as quickly as possible; take advantage of redraw and offset facilities and make additional repayments where possible. Remember, you pay interest on every dollar owed, every day.

The faster you reduce your loan the less exposed you are to the danger of a market dip.

How much can I borrow

Tuesday, October 30th, 2007


How much can I borrow?

When thinking about how much they can borrow, many people head straight for one of the many calculators available online which come up with a figure which is unrealistic and often far above what they actually need to borrow.

Sure, you may be able to borrow $500,000, but do you need this much money? And how will a loan of that size fit into your financial and personal goals?

The reality is that these calculators are only looking at the cold hard figures and take no account of your personal circumstances, or where you want to be in five years time.

To get a true picture of how much you can borrow, you need to sit down with a qualified MFAA (Mortgage & Finance Association of Australia) Mortgage Broker and spend some time going through all the issues and factors involved.

This is particularly important for first homebuyers, who need to be certain that they are taking on a debt that they will be able to service.

Even if the figures show that you can’t afford to take out a loan right now, don’t despair! You now know what you need and can start looking at ways to work towards it.

There are so many other issues involved in looking at how much you can afford to borrow.

A professional mortgage broker can help you to do all the sums and recommend the products which will work best with your existing financial situation, whether you use a bank, or a credit union, or another financial institution.

Go to ‘How Much Can I Borrow Calculator’