Australia Accommodation

China Cuts Interest Rates for Third Time in Six Months as Economy Sputters

2015-05-10T17:44:00.001-07:00

China Cuts Interest Rates for Third Time in Six Months as Economy Sputters

China cut interest rates for the third time in six months on Sunday in a bid to lower companies' borrowing costs and stoke a sputtering economy that is headed for its worst year in a quarter of a century.

Analysts welcomed the widely-expected move, but predicted policymakers would relax reserve requirements and cut rates again in the coming months to counter the headwinds facing the world's second-largest economy.

The People's Bank of China (PBOC) said on its website it was lowering its benchmark, one-year lending rate by 25 basis points to 5.1 per cent from May 11. It cut the benchmark deposit rate by the same amount to 2.25 per cent.

"China's economy is still facing relatively big downward pressure," the PBOC said.

"At the same time, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average," it said.

Sunday's rate cut came just days after weaker-than-expected April trade and inflation data, highlighting that China's economy is under persistent pressure from soft demand at home and abroad.

While the PBOC acknowledged the difficulties facing China's economy, it said in its statement accompanying the announcement that it wants to strike a balance between supporting growth and deepening structural reforms.

As part of these reforms, it lifted the ceiling for deposit rates on Sunday to 1.5 times the benchmark level, the biggest increase in the ceiling since it began to liberalise the interest rate system in 2012.

More Easing Ahead

Economists had said it was a matter of when, not if, China eased policy again after economic growth in the first quarter cooled to 7 per cent, a level not seen since the depths of the 2008/09 global financial crisis.

Indeed, some analysts have even said recently that the PBOC had fallen behind the curve by not responding aggressively enough to deteriorating conditions.

With China set to publish more key economic data on Wednesday, including industrial output and investment, the timing of the rate cut could add to worries that figures may disappoint across the board again, as they did in March.

For now, however, some were confident that policymakers can arrest the slide.

"Intensified policy loosening will help effectively halt the economic slowdown," said Xu Hongcai, a senior economist at China Centre for International Economic Exchanges, a well-connected think-tank in Beijing.

A cooling property market and slackening growth in manufacturing and investment have weighed on the Chinese economy. Annual growth is widely forecast to sag to 7 per cent this year, down from 7.4 per cent in 2014.

In an attempt to energise activity, the PBOC has now lowered interest rates and relaxed the reserve requirement ratio (RRR) five times in six months, and many economists believe more policy loosening is in store.

This is partly because despite the steady drum roll of policy easing, there are indications it has not benefited the real economy. Some data suggests banks are not passing on lower interest rates to borrowers, and credit is still not flowing to the sectors in most need of the funds.

"The effectiveness of the rate cut won't be very big," said Li Qilin, an economist at Minsheng Securities. "The PBOC has already cut benchmark interest rate by a total of 65 basis points, but borrowing costs have only fallen marginally."

Struggling Banks

Banks are also struggling as the economy founders. Lending has slowed, bad loans are piling up, and profits margins are getting squeezed as China liberalises its interest rate market. Banks' earnings reports last month showed profit growth hit a six-year low in the first quarter.

Given these challenges, the PBOC said it does not expect banks to pay savers the maximum deposit rate allowed by authorities.

And with the prospect that borrowing costs may stay stubbornly elevated, government economists told Reuters earlier this month authorities may ramp up state spending to shore up growth, in the hope that fiscal policy would work where monetary policy hasn't.

But Li Huiyong, an economist at Shenwan Hongyuan Securities, cautioned against thinking that lower borrowing costs would not trickle down to businesses and consumers at some point.

"Don't underestimate the cumulative effect of the cuts in interest rates and RRR," Li said. "This won't be the last cut.

"The rate could be lowered to 2 per cent at least, and we expect the economy to gradually stabilise in the coming two quarters."

Mortgaging our children’s future: Aussie ticking time bomb sparks fears should new GFC hit

2015-03-16T16:11:00.001-07:00

AUSTRALIAN households are sitting on a ticking time bomb of debt, exposing the economy to risks in the event of another financial crisis, according to new analysis.

The Australian reports household debt in Australia is equal to 130 per cent of GDP, compared with an average across the advanced world of 78 per cent, according to Barclays chief economist Kieran Davies.

Household debt was at 116 per cent of GDP before the global financial crisis and held steady until 2013, when the property boom set it rising again.

Mr Davies said Australia’s debt levels were rising when those of other countries were falling, and the predicted rate cuts were likely to push borrowing even higher.

Reserve Bank governor Glenn Stevens warned of the dangers of taking on excessive debt last year, saying “we would surely be asking for trouble if we see a big step up from where we are”.

“The tricky thing for the Reserve Bank is that promoting leverage is the key channel for the transmission of lower interest rates through to the rest of the economy,” Mr Davies said.

The high popularity of real estate investment in Australia compared with other countries is being driven by the availability of negative gearing tax concessions and favourable capital gains tax treatment.

The level of household debt is higher now than at any other time in Australia’s history, with records going back to the 1850s. The level of bank lending as a share of GDP is now more than double the share of the previous peak, which was during the 1890s land boom.

Using Super to Buy First Home a 'Pressing National Issue' Says REIA

2015-03-08T05:23:00.001-07:00

Federal Treasurer Joe Hockey appears to have taken the real estate industry lobby group's advice in suggesting people should be able to use their superannuation to buy their first homes, as the peak superannuation body urged caution for such an approach.

The Real Estate Institute of Australia outlined the radical idea in its budget submission to Mr Hockey last month, with the treasurer saying Australians ought to start thinking seriously about the way in which their super savings can be used in the future because people were working and living for longer.

"We are prepared to look at a diverse range of proposals to help young Australians buy their first home," Mr Hockey said, suggesting that super could be used for a deposit on a first home or job retraining.

His comments were quickly criticised by Labor and some economists, but REIA chief executive Amanda Lynch said using super to help pay for a first home could make housing more affordable and build retirement savings.

"We believe that owning a home is the biggest generator of long-term financial security for Australians and the earlier you can access the housing market, the more secure your retirement will be because most Australians aspire to have paid of their home before they retire," Ms Lynch said.

Shadow Treasurer Chris Bowen rejected the suggestion, saying it would have the opposite effect.

"[The] plan would have the likely effect of not only undermining retirement incomes but also driving housing prices up further and making it harder for first-home buyers," he said.

Association of Superannuation Funds of Australia chief executive Pauline Vamos said the plan would benefit the rich far more than the poor.

"There are significant equity issues when it comes to allowing the release of concessionally taxed superannuation contributions for home equity," she said, referring to higher income earners paying 45 cents in the dollar in income tax but only 15 cents in the dollar on superannuation contributions.

They would be able use concessionally taxed super money to buy a house and then top up their super, again at a low tax rate.

"There significant equity issues when it comes to allowing the release of concessionally taxed superannuation contributions for home equity," she said.

But Ms Lynch stood by the proposal.

"The fact about buying a house is that you are actually saving all that equity and the compounding interest will be beneficial. To say that investing in superannuation, which is mainly skewed towards shares, is a safe proposition doesn't hold up to scrutiny.

"In the years since the GFC we have actually seen super being more of a financial risk than previously and a lot of people close to retirement have found their super balances have been dwindling."

Australian Dollar Tumbles on RBA Cash Rate Cut

2015-02-03T14:21:00.001-08:00

The Australian dollar tumbled by more than one and a half cents on the Reserve Bank of Australia's decision to cut the cash rate to a historic new low.

The local currency hit a fresh five-and-a-half year low to US76.57¢ on Tuesday afternoon, down from US78.16¢ just before the release. The reaction followed the central bank's decision to cut the cash rate by 25 basis points to 2.25 per cent after 18 months of holding the rate steady.

Despite the sharp fall in the Aussie dollar – nearly 20 per cent in the past six months – the Reserve Bank said the exchange rate remained high.

"The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies," the Reserve Bank said in its statement on monetary policy.

"It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."

Market forecasts the exchange rate to continue to fall. On Commonwealth Bank of Australia figures, the local currency is expected to fall towards 73¢ by June this year, but the bank's senior currency strategist Elias Haddad said there was a risk the Australian dollar will fall even further and the bank will be revising its forecast.

"We expect a further downside movement here, not just against the US dollar but also on the crosses, due to narrowing interest rate, falling commodity prices and still unimpressive Chinese economic data," Mr Haddad said.

National Australia Bank will also be revising its forecast in light of Tuesday's tumble. Back in November last year the bank forecast the Australian dollar to hit US78¢ by the end of 2015. NAB global co-head of FX strategy Ray Attrill said the bank will be reviewing its forecast after the central bank releases its statement on monetary policy on Friday.

"The market already priced in the expectations of a rate cut, but the currency still lost. It shows the market is still prepared to sell," Mr Attrill said.

In an exclusive interview with The Australian Financial Review in December last year, Reserve Bank governor Glenn Stevens said an appropriate level for the Australian dollar would be US75¢.

Mr Attrill said the currency could be heading towards the US70¢ mark, given the fall in the commodity prices since December.

"You can argue, if US75¢ was about the right level in mid-December, and taking into account what's happened with commodity prices generally, maybe US70¢ is more appropriate," he said.

A batch of data fuelled RBA jitters earlier on Tuesday. The Australian dollar jumped by more than third of a cent to US78.30¢ after slightly better-than-expected economic data was released: building approvals slipped 3.3 per cent in December (better than the predictions of a 5 per cent slide) and trade deficit narrowed to $436 million in December, beating expectation of more than $850 million.

#AustralianDollar #RBA #interestrates

Property-Related Firms Rake in Revenue From Real Estate Boom Australia

2014-08-25T18:43:00.001-07:00

Property exposed companies have reported "tremendously successful" and "best ever" results thanks to the booming housing market.

Developer Mirvac saw its full year profit spike 220 per cent to $447 million dollars.

Shareholders will receive a final dividend of 4.6 cents a share, taking the full year payout to 9 cents unfranked.

Strong residential sales lifted the result, with a total $1.2 billion of exchanged pre-sales contracts in hand and a slightly better than forecast 2,482 properties settled.

Chief executive Susan Lloyd-Hurwitz says the year has been "tremendously successful" and has set the company up for the future.

That future is very focused on building apartments to feed what it believes will continue to be high demand, particularly in Sydney and Melbourne.

Chief investment officer Brett Draffin says the strong sales and price momentum seen over the past financial year is set to continue, albeit at a "slightly more moderate level."

He is not concerned about the flood of units that is expected to come onto the market in the near term.

"Fundamentally increased stock levels are insufficient to overcome the national undersupply, there is a high level of activity from offshore buyers in select locations and product types," he told investors.

"We expect demand volumes to continue to grow driven by tight rental vacancy population growth and a strengthening of the economy."

Mirvac has spent $248 million on new sites, two-thirds of these acquisitions were in NSW, less than a fifth were in Victoria, and the remainder in Queensland and Western Australia.

Half of the lots to be released this year are in Sydney, and almost all of them are units.

Mirvac believes the major acquisitions it has made will see residential development drive earnings from two years time onwards.
Mortgage broker boosts earnings

Mortgage broker Mortgage Choice has also benefitted from the fever that has swept the residential property market over the past year-and-a-half, boasting a best ever full-year result.

Full-year net profit rose 6 per cent to $19.85 million, and cash profit jumped 19 per cent to $18.7 million.

The final dividend was boosted to 8 cents a share, fully-franked.

The company says it "managed to capitalise on the industry tailwinds and significantly grow its core business."

The business wrote $12.2 billion in loan approvals, which is almost 20 per cent higher on the prior year, and the loan book rose to $47.4 billion.

Chief executive Michael Russell says it is the best result so far for the company.

"We have embraced the opportunities that the strong market has presented us with and managed to deliver some of our best financial results to date," he said.

The company says it is well on its way to achieving its goal of becoming a recognised diversified financial services provider.

"We will continue to focus on our growth and diversification moving forward."

Property Sydney: Chinese Investor Frenzy Adds Fuel to Inner-City Sydney Apartment Boom

2014-08-25T05:50:00.001-07:00

THOUSANDS of Chinese investors piled into a property expo in Sydney’s Town Hall on the weekend as analysts tip overseas buyers will keep the city’s inner city apartment market booming for the next two years.

Close to 50 companies jockeyed for the attention of the cashed up Chinese buyers, with apartment projects being spruiked by development giants Greenland Holding Group, MAB Corporation and Frasers Property Australia

About 50 companies jockeyed for the attention of the cashed-up Chinese buyers, with apartment projects being spruiked by development giants Greenland Holding Group, MAB Corporation and Frasers Property Australia.

The property frenzy came as Sydney and Melbourne kicked off the spring auction season with strong results, posting clearance rates of 83.4 per cent and 75.3 per cent respectively on total sales of $545.7 million, according to preliminary figures released by Australian Property Monitors.

“The (auction) results were extraordinarily strong,” said APM senior economist Andrew Wilson. “The Sydney market just keeps rising. Certainly there is no sign of a waning of activity.”

He said a lot of the buyer action was driven by investors rather than owner-occupiers.

At the Sydney property expo Maggie Wang bought a house in Bellevue Hill, in Sydney’s east, for about $6m.

Ms Wang, who migrated three years ago, ran an IT and property development company in China and had recently started a wedding planner business in Australia. She said Chinese interest in Australian property was about more than just making money.

“People like the lifestyle, the country and the environment, it’s not just about investment,” Ms Wang said.

Another buyer, 26-year-old Crystal, bought a home in one of Sydney’s wealthiest suburbs, Vaucluse, for more than $5m, with plans to buy more Australian investment properties.

The expo also featured agencies, such as ABC World, which give Chinese investors advice on migrating to Australia through avenues such as the Significant Investor Visa. The visa, implemented by the former federal Labor government, allows foreigners who invest more than $5m in Australia the potential for permanent residency.

Black Diamondz director Monika Tu, who represents wealthy Chinese looking to buy Australian homes, said the visa’s introduction had led to a surge in interest for local trophy homes worth more than $5m.

Ms Tu said inquires to her agency from Chinese property hunters had increased by about 50 per cent this year.

Also at the expo, one of China’s largest developers, Greenland Holding Group, held expressions of interest for its second local project, the $200m Lucent apartment tower in North Sydney, while Singaporean-backed Frasers Property Australia marketed apartments at its $2 billion Central Park project at Sydney’s inner-city Chippendale.

The high investor demand for off-the-plan apartments is expected to keep Sydney’s inner-city market in boom mode for the next two years, according to forecaster BIS Shrapnel.

BIS Shrapnel said about 5800 apartments were under construction in Sydney while about 11,500 new apartments would be completed over the next three years — the biggest number in the city’s history. CBRE managing director of residential projects David Milton said the uplift in interest from Chinese investors allowed local apartment developments to stack up financially.

Home Owners Forced to Take Super - Australia Mortgage

2012-08-18T19:41:00.001-07:00

HOME owners have raided their superannuation funds of a record $100 million in last-ditch bids to avoid foreclosure, new government figures have shown.

The surge in mortgage-holders seeking emergency access to their savings has alarmed housing and social welfare groups, who warn many families are still struggling to meet loan repayments despite steep cuts in the interest rate

With distressed owners receiving an average of $15,250 each, there are also concerns some super accounts could be drained of more than a third of their value. The number of households in serious financial trouble has worsened despite mortgage lending rates falling about 1 per cent in the past six months and nearly 3 per cent since their peak in mid-2008.

Figures obtained by The Sun-Herald showed 6500 home owners were given emergency access to their super last financial year to prevent an imminent foreclosure.

A Commonwealth Department of Human Services report found $99.38 million was released, up 25 per cent on 2010-11 and well above the disbursements in the aftermath of the global financial crisis.
It also marks the third year in a row that the number of people applying for, and being granted access to, their nest-egg has increased.

A campaign manager for Australians for Affordable Housing, Sarah Toohey, said years of house price growth had seen debt balloon and forced households to devote an unsustainable amount of income to meeting mortgage repayments.

''It's alarming and it shows that housing affordability is about more than just interest rates,'' she said.
''The sheer size of what people have to borrow to get into the housing market now really puts household finances under strain.'

Top Ranking Hotel Accommodation Gladstone, Queensland

2012-06-11T06:15:00.001-07:00

5 of the Top Ranking Hotel Accommodation providers in Gladstone, Queensland

Rydges Gladstone
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Xenia Central Studio Accommodation
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Toolooa Gardens
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Quality Inn Harbour City
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Harbour Sails
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Metro Hotel and Apartments Gladstone
22-24 Roseberry Street, Gladstone QLD 4680
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Hotels Gladstone Interactive Map - Gladstone Hotels, Queensland

2012-06-11T06:01:00.002-07:00

See below interactive map to help you choose your ideal hotel accommodation while staying in Gladstone, Queensland

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Sydney's Housing Market to Continue to Grow

2012-06-10T05:32:00.001-07:00

Sydney is Australia's most populous city and its housing sector offers investors unique opportunities with the security that comes with investing in a large and rapidly expanding market.

Property prices in Sydney have increased 25 per cent in the last four years, during which many other housing markets around the world have stagnated or even gone backwards.

The reason that Sydney's housing prices have continued to rise is simple - more people want to live there. Famous for its landmark Harbour Bridge and Opera House, Sydney is the business and financial capital of Australia, with an ideal climate and a relaxed yet cosmopolitan lifestyle.

Sydney has nearly five million residents and its annual population growth rate of 1.6 per cent is higher than the Australian average. It is also higher than that of any major western city outside Australia, yet less than half of this increase comes from births.

Most new Sydneysiders are overseas arrivals who come to Australia to start a new or better life, seeking employment or education opportunities for themselves or their children. They have created a steady demand for around 30,000 more dwellings each year, pushing up prices and making Sydney the most expensive city in Australia to buy a house.

The median price of a Sydney house is now around A$620,000 (S$786,740) and it is rising. Landed properties can be purchased on the outskirts of Sydney for around half this amount, but they are located far from the city centre. Sydney's idyllic harbour side location brings problems, as much of the land is locked away in parks or reserves and there is less available for housing. The urban footprint has spread as far south, north and west as there is land available.

It is almost impossible for overseas arrivals to buy a home until they settle and establish themselves, which can take many years. This has led to a rise in Sydney's rents, which are higher than any other major city in Australia.

High rents and prices have changed Sydney's landscape. They have led to the abandonment of the dream of a landed home for many young Sydneysiders and led to a boom in apartment living. Over half of Sydney's dwellings are apartments or "home units" as the locals call them.

The new medium and high-rise apartment blocks contain gymnasiums, swimming pools and garden barbecue areas. The units are fitted out to attract renters, while their design lowers maintenance costs for investors. Many of the suburbs where this transformation is occurring - such as Pyrmont, Ultimo, Camperdown, Double Bay and Broadway - are located close to the central business district and in the urban centre itself.

What makes these dwellings ideal for investors is that prices for home units are still less than 70 per cent of those of similar sized houses.

The Sydney inner urban market is unique because there are fewer development projects in the pipeline than there are in other cities such as Melbourne even as the rental demand is far higher. Rents in these areas are escalating as a result and housing investors from Singapore can buy off-the-plan units with confidence, knowing that both the rental yield and the value of their investment are likely to rise in the coming years.

It's Going to Be the Year of the Unit - Apartments Sydney

2012-02-04T03:41:00.000-08:00

New or old, apartments will be a popular choice for Sydneysiders in 2012.

It's just possible that apartments, especially those at the cheaper end, are one bright spot in Sydney's real estate market.

Prices generally for units have performed better than those of houses during the past five years, according to RP Data - with units recording average annual growth of 5.2 per cent compared with 3.6 per cent for houses. In the 12 months to December, RP Data reports unit prices rose by 0.9 per cent, while house prices fell by the same amount.

RP Data's senior research analyst, Cameron Kusher, says units should continue to do well this year and the more affordable ones should do best, even though there will be fewer first-home buyers now that the stamp duty exemption has ended for existing properties under $600,000 (it continues for new properties).

Kusher and other experts believe there are several reasons why units will continue to prove popular. The most obvious is that in a city as expensive as Sydney, they are the cheapest way into the property market. And with rents continuing to climb and the rental market in most suburbs very tight, this creates an incentive to buy.

A director of Richardson and Wrench, Peter Baldwin, believes the rising cost of renting makes buying a unit a much more sound option at the moment. ''It will be a price-factor thing,'' Baldwin says.

''The young ones won't be able to afford houses.''

A second reason for the popularity of apartments is that Sydneysiders are actually growing to like living in them.

''There's no doubt about it, people are embracing apartment living,'' says the senior economist at Fairfax-owned Australian Property Monitors, Andrew Wilson.

Prices

One of the biggest influences on the price of apartments (and houses) this year could be decided this week. The Reserve Bank is widely tipped to announce the first of several more cuts to interest rates on Tuesday, which, if banks pass the cuts on, would make prices more affordable.

The head of real estate strategy at Macquarie Capital, Rod Cornish, says if the cuts occur, affordability will ''be getting back to 2002 levels''.

''That is going to encourage the market to stabilise first and by the second half of this year, we think there will be some mild growth,'' he says. ''[That will be] predominantly growth in the mid-price range - $400,000 to $800,000 - because that's the one that will be most affected by the cuts.''

Baldwin says two rate cuts this year would be ''kindling to light the market'' and would ''really be a fillip to anyone'' buying. But he is not confident there will be much price growth. ''If it flatlines, that's the best possible result for the [apartment] market this year.''

Wilson predicts that if the economy continues to grow this year, the market for prestige apartments, along with the rest of the apartment market, should also start to pick up.

The managing director of Meriton, property developer Harry Triguboff, is more bullish. He thinks unit prices will rise by between 5 per cent and 6 per cent this year, although there will be nothing like a boom. ''Councils never approve enough [developments] so it will just go up gradually,'' he says.

On the lower north shore, apartments under $1.5 million will be popular because prices have stopped falling and buyers can see more chance for capital growth, says the principal of Belle Property Mosman, Tim Foote. ''I'm not predicting that prices are going to improve dramatically but I think there will be activity,'' he says. His office has already had strong interest from buyers this month.

The same is happening in the eastern suburbs and inner west. In Bondi, a unit that was for sale with expectations of $520,000 to $530,000 last year sold this month for more than $540,000, says the managing director of Morton and Morton, Ewan Morton. He says the start of this year has been much busier than that of last year, which he thinks is because buyers and sellers need to ''get on with things. They can't sit and wait forever.''

Baldwin predicts the most popular suburbs for apartments this year will be those close to public transport and within easy reach of the city centre, in particular Parramatta, Ashfield, Marrickville and the area from Epping back to Meadowbank. Buyers will mainly be owner-occupiers, especially upgraders, Cornish says, while investors will be more cautious until they see the market has stabilised and prices are rising.

New v old

The senior director of residential properties at CB Richard Ellis, Tim Rees, thinks there will be a lot of activity this year from buyers wanting affordable new and off-the-plan apartments up to $900,000. But the real ''market drivers'' will be several state government incentives that encourage buying off-the-plan or new dwellings under $600,000.

One of them, stamp duty exemptions for first-home buyers, has just ended for existing properties but they continue for new and off-the-plan dwellings. Another, the Home Builders Bonus scheme, gives all other buyers a full exemption on stamp duty for off-the-plan dwellings where construction hasn't started, or a 25 per cent discount where it has. However, this scheme finishes on June 30 and Rees says this will create a lot of demand in the first half of the year.

CB Richard Ellis alone has more than 12 off-the-plan projects earmarked for sale before July, all of which are in inner and middle-ring suburbs, such as Mosman, Homebush and Macquarie Park, Rees says. So far this year, they've sold 40 apartments, a better result than this time last year, which Rees says is also a reflection of interest rates coming down and a tight rental market.

The managing director of residential for Colliers International, Peter Chittenden, says there has been consistent interest in apartments under $600,000 in the past year, something he thinks will continue until closer to the June 30 cut-off. After that, some developers might extend this exemption themselves by offering to pay buyers' stamp duty to maintain their market share, Chittenden says.

Meriton, too, will be building several hundred more apartments this year than its usual annual total of 1500, Triguboff says, in areas such as South Sydney, Rhodes, Epping, Warriewood and St Ives.

Despite this strength in new apartment sales, Cornish believes there aren't enough being built to satisfy demand and there is ''not as much new construction as there has been in previous cycles''. Most of the demand will be for established apartments, he says.
Mani's ready to enjoy the calm after the storm

Mani Thiru has been in Australia for just six months but has decided now is the time to buy an apartment.

The British-born IT worker of Sri Lankan heritage spent the past decade in the Netherlands and came to Australia last year for work. Since arriving, she has lived in Mosman, near the beach.

She wants to buy in the same area and is looking for a one- or two-bedroom apartment, possibly with a view of the water, up to $600,000.

Thiru says she usually invests her savings in the sharemarket but economic uncertainty in Europe, cuts to interest rates here, plus the high cost of renting encouraged her to buy.

''The stamp duty concessions were in place last year, which I think inflated the prices, especially towards the end,'' she says. ''It felt like there was a lot of competition last year whereas now it seems to have calmed down.''

So far, Thiru has seen several units she likes, one of which is being sold by Adam and Jasmina Vernon of Belle Property Mosman.
Investors read the signs of the times

Just a few weeks into the year and already Bahar Etminan, the editor of fashion and beauty website rescu.com.au, and her town-planner husband were pounding the pavement looking to buy an investment property.

The couple, who have a young daughter, are renting in the eastern suburbs while they save up to buy a house. They have been investing in apartments every 12 to 18 months as a way of working towards this goal and already have several investment properties close to where they live.

They started looking for their latest purchase - a two-bedroom unit, possibly with a study up to $650,000 - towards the end of last year but Etminan says the time is right to buy because ''prices have come back a bit''.

They're looking in areas that they know - Woollahra and back towards Bondi Junction, Double Bay and Darling Point, all suburbs that are close to public transport, shops and have strong rental yields and good capital appreciation, she says.

''People are talking about the market getting lower and lower but, in the price range we're looking at, I don't think it's going to bottom out,'' Etminan says.

''It seems to be a fairly stable price range and also excellent for rental returns.''

It's Going to Be the Year of the Unit - Apartments Sydney

Sydney Accommodation - Australia Accommodation

2011-06-08T03:43:00.001-07:00

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Grand Mercure Apartments Darling Harbour
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Harbour Rocks Hotel
www.mirvachotels.com - 34-52 Harrington Street, Sydney - (02) 8220 9999

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Goldsbrough Apartment Hotel on Darling Harbour
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Shangri-La Hotel, Sydney
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Park Hyatt Sydney Hotel
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