Global reports confirm this, with the 2010 Housing Affordability Index from The Economist putting Australian real estate as the most unaffordable in the world (at over 60% over-valued).

It is, of course, easy to prove ones own argument by finding information and statistics that support it.

So, we set out to disprove ourselves, by finding current expert opinion from reputable sources.

ANZ, one of Australia’s largest banks, has recently released The Australian Housing Update.

It argues that the general methodology behind the (numerous) global reports is inaccurate as, in measuring ratio’s between house prices and relative income, the outcomes fail to take interest rates into account.

So far, so plausible.

The ANZ report states that housing affordability is ultimately dependent on debt servicing costs of which interest rates are a key driver.

The report shows that mortgage interest rates in Australia in the 1980’s averaged around 14%, however, since 2000 the average has been close to 7%.

This is where I take issue.

Whilst the figures they use are accurate, ANZ (no doubt quite keen for Australian’s to continue borrowing and not get cold feet about their debt levels) fail to take stock of the bigger picture.

Australian household debt has skyrocketed since the 1980’s (yes, I’m using a time period they introduced) and has indeed risen much faster than household disposable income.

In the 1980’s the average Australian household held debts totaling around 40% of their disposal income. To be specific, in December 1986 the ratio was 44.1% and just twenty years later in December 2006 the ratio had accelerated to 158%. This represents an increase of 258%. According to the Reserve Bank of Australia, household debt in 2010 is 166% of income.

The ratio of personal debt to income in Australia is indeed one of the highest in the world – higher even than America and the UK. For every $100 we earn, we owe $130. Credit and charge cards account for $40 billion of the debt.

The 1980’s are often referred to, particularly by baby boomers, as being the most difficult period in recent times as interest rates were in excess of 18%.  In saying that, think of today’s credit card interest rates, some exceeding 20% and the purchasing of more general goods on credit is far more prolific today than it was 20 years ago.

As such, whilst in 1989-90 about 6% of an Australian’s wages were used to service a mortgage, today it is around the 9.3% mark. This is an increase of 55%.

So, we remain of the opinion that household debt levels cannot be pushed up much further and housing affordability remains a major concern.

As household debt remains at such dramatic levels, the pressure on housing affordability and thus real estate prices will not simply retreat.

Let us know where you think the market is heading!

Simon Turner

Article originally published on Marquette Turner Luxury Homes

Australian Housing Affordability and Household Debt

Hi Welcome to the latest edition of the MTLH eMagazine.  In this week’s issue we feature a stunning Malibu Estate that’s literally straight out of the movies.  Speaking of which, there’s also a feature on Marilyn Monroe’s former home.  Plus, we’ve got some Green tips for helping in the sale of your property, an online service to help makeover your home, our latest microfinance loans via the Kiva organisation, plus an outstanding mansion in Ireland.  Enjoy and all the best,  Michael Marquette & Simon Turner. “Too many people overvalue what they are not and undervalue what they are.” - Malcolm S Forbes LUXURY HOME Malibu Estate, California Featured in many TV shows and movies, The Henman House is perhaps one of the most visually stunning properties you’ll see in a long time. INTERIOR DESIGN Online Service for Home Makeovers I Heart Design is a great new online service that helps you makeover the rooms of your home, with the aid and guidance of real designers but for a fraction of the cost. CELEBRITY Marilyn Monroe’s Home for Sale The only home that the icon ever owned was also the home that she died in.  The Brentwood property was also once the home to OJ Simpson.  Would owning it be blessing or a curse?  We’ll leave that for you to decide. LUXURY HOME Grand Estate in County Kildare, Ireland Currently operating as a 17 bedroom country estate and hotel, this wonderful historic property would also make a fantastic home. GOOD CAUSE Our Latest Microfinance Loans to Kiva We’ve been a part of the Kiva organisation for a number of years, and it’s truly a wonderful group to be a part of.  This week we’ve loaned to causes in Kyrgyzstan, Rwanda and Philippines.  Find out more about them and our logic. LUXURY HOME “The Whitehouse”, Fiji Just a few years old, this home features stunning, tropical views and is your opportunity to own a piece of paradise. ENVIRONMENT Green Tips to Help You Sell Being conscious of looking after the environment is a good attitude, but when you’re selling your home it can make a very useful difference.  Here’s 5 tips to help you. HEADLINES This Week’s Global Real Estate Headlines From North America to the South, from Europe to Asia, from Africa to Australasia, we present a synopsis of real estate news that made the headlines around the world during the last period. PREVIOUS eMAG Issue #26 Featuring a private resort on a Greek island, perfect for the absolute, indulgent vacation.  There’s also the planned London skyscraper which will be its largest and most sustainable, plus the Roll-It modular home, the Floridian haven of Boca Grande and news of the oldest known champagne recently discovered.  There’s also properties in California, Fiji and many, many more. Thanks for joining us! Michael Marquette & Simon Turner Read all these articles and many more at: Contact Us CLICK HERE or Australia: 1300 737 778 International: +61 2 9238 6673 Email: info@marquetteturner.com Connect with Us

ISSUE # 27, 2010 Subscribe Services Looking to sell, lease or market your property? CONTACT US TODAY! Real Estate Search AFRICA AMERICAS ASIA AUSTRALASIA EUROPE MIDDLE EAST SOUTH PACIFIC ALL LISTINGS Featured Homes New South Wales, Australia Tamaran, Mauritius Bora Bora, French Polynesia Yalikavak, Turkey Brisbane, Australia Rhode Island, USA Long Island, Bahamas Quintana Roo, Mexico Koh Samui, Thailand Florida, USA Esterillos, Costa Rica Stockton, Australia Taranaki, New Zealand Cape Town, South Africa Florida, USA Tuscany, Italy Hawaii, USA Join Us Whether you’re looking for a position as a sales professional, would like to open an office, or become a Luxury Affiliate, there’s an opportunity with Marquette Turner.

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Article originally published on Marquette Turner Luxury Homes

Luxury Real Estate News: 30 July 2010 Marquette Turner Luxury Homes eMagazine

AUSTRALIA: Housing prices fall flat in Melbourne – The Herald Sun

BRAZIL: World Cup and Olympics ‘could create Brazilian property boost’ – Property Showrooms

CANADA: Canada Still Loves The Real Estate Bubble – Business Insider

CHINA: Chinese Real Estate: How to Enjoy the Year-End Rally – Investing Daily

COSTA RICA: Top 10 Reasons to Invest in Costa Rica – Stock Markets Review

FRANCE: Tax agreement with France introduces real estate tax exemption – International Law Office

INDIA: Trajectory of Flourishing Real Estate in India – Stock Markets Review

INDONESIA: Indonesia To Reissue Tender On Mega Resort Project – Bernama

IRELAND: Irish Show Greeks Suffering Is Price of Admission to Euro Union – Bloomberg

ISRAEL: Fischer Raises Key Israel Rate to Prevent Real Estate Bubble – Bloomberg Businessweek

JAPAN: Real Estate News: Home Prices Rise, But Expectations Fall – Wall Street Journal

MALAYSIA: Shariah Loans Reach Five-Year Low on Property: Islamic Finance – Bloomberg Businessweek

MEXICO: Mexico Real Estate Gets Unlikely Boost From CNBC’s ‘Mad Money’ Host – Real Estate Channel

NEW ZEALAND: New Zealand Raises Benchmark Rate for Second Month – Bloomberg Businessweek

PHILIPPINES: Philippines ripe for real estate investment trusts — experts – Business World Online

ROMANIA: Rate Swings Sting Europe’s Borrowers – The Wall Street Journal

RUSSIA: Russia is the Most Attractively Valued BRIC Market – Hemscott

SINGAPORE: SMART buyers and sellers will be heading to Singapore – Property Report

THAILAND: Bangkok hotspots revealed in new report – Property Report

TURKEY: Property and Real Estate in Turkey – Why it is a Good Investment – Tom Wilt News

VIETNAM: Problems ahead for Vietnam’s housing market? – Global Property Guide

UNITED ARAB EMIRATES: Dubai Marina is the Top Choice for Property Investment – PR-USA

UNITED KINGDOM: House prices fall as buyers stay home – This is Money

UNITED STATES OF AMERICA: Number of USA homes for sale rising – Property Showrooms

Do you have an article to share, or would you like your country included in the list? Let us know!

Simon Turner

Article originally published on Marquette Turner Luxury Homes

Real Estate News Making Headlines Around the World: 24-30 July 2010

When we make our loans each month, we look to do the following:
- Make a loan “close to home” (in the Asia/Pacific region)
- Make a loan to an African cause.
- Make a loan out of sentiment.
- Support women and children.
- Support education.

In the latest selection, we chose Kyrgyzstan because, whilst being involved in the war in Afghanistan in 2002, I spent many months in Kyrgzystan. I hold the country with great affection, and the added political troubles that have bubbled over in the country this year (they were always there, by the way), makes the need for the loans greater. Our African and Philippine choices covered a few bases – the need to support women, the locale, and the importance of encouraging education.

As always, the causes we choose are not made because they are more deserving than others – we’ve gradually been able to separate our desperate want “not to judge” with the reality that we can’t help everyone. In saying that, there’s a Talmudic quotation (you may have heard it in the movie, Schindler’s List): “Whoever saves one life, saves the world entire”. That seems a pretty good rule to work by.

So, here’s more information on our latest donations. Don’t forget that you can sign up to donate through Kiva – make small loans and take an interest in what’s happening around the world:

Loan To: Lisa Jalandoni
Location: Sto Niño, South Cotabato, Philippines
Activity: Farming
Loan Use: to purchase fertilizers such as manure

Lisa is is 34 years old, single and loves helping her family. Lisa owns and operates a farming business, planting and harvesting rice for sale. Lisa has been engaged in her business for over 5 years and earns approximately 5,000 PHP a month from it.

Lisa joined CEVI to gain access to financial services to help improve her living situation and ability to engage in business activities. Lisa has successfully repaid a previous loan from CEVI. She is requesting a new loan of 20,000 PHP which will be used to purchase fertilizers such as manure. This will be the tenth loan taken out by Lisa from CEVI. She plans to use the additional revenue generated from the business to financially support her family.

Loan To: C4561 Twuzuzanye Group
Location: Kimironko Hategekimana, Rwanda
Activity: Clothing Sales
Loan Use: To expand her business

Eugenie is 43 years old and married with three children. The first child is 20 years old, the next is 15 and the last is 11 years old. Eugenie takes care of one dependent who is 10 years. Eugenie owns a small business selling various styles of clothes. Eugenie has enough experience in this field because this is her fifth year of experience. The hours of her shop are from 8 in the morning to 7 in the evening every day except one day in the week. Eugenie is group leader of her group, which is called TWUZUZANYE in the local language. This group contains 11 members with different businesses.

Now, Eugenie and her group are requesting a loan from Kiva lenders via Vision Finance Company in order to expand their business through purchasing more products for their business. With this loan, Eugenie and her group will be able to satisfy their customers, which will be one of the ways of earning more profits.

Loan To: Ainura Kochorbaeva’s Group
Location: Kochkor, Kyrgyzstan
Activity: Personal Education Expenses
Loan Use: To pay for her daughter’s education at university

Ainura Kochorbaeva is the leader of this group. She is 51 and married. She has raised two daughters and a son. The first daughter is married and lives separately with her family, the second is a student and the son works as a teacher. Ainura also works as a teacher at the same school. Her husband has been engaged in cattle breeding since 1995, after the collective farms broke up. Ainura applied for this loan because she needs money to pay for her second daughter’s education at university.

Nuruiza Mukambetova, 51, is married. She has two daughters and a son. The first daughter studies at university, the second is at school and the son is preschool age – under 7. Nuruiza and her husband have been engaged in cattle breeding since 1995. By selling some cattle, they were able to repair their house and purchase a tractor. Now Nuruiza hopes to obtain this loan because she needs money to pay for her daughter’s medical treatment. In the future, Nuruiza wants to see her daughters get married.

Aigul Tokoeva is the treasurer of the group. She is 49 and married. She has raised five sons: the three older ones are working, the fourth son is in the army and the youngest one studies at school. With money received from this loan, Aigul wants to pay for her son’s education at university. In the future, she wants to purchase a house in Bishkek.

Sveta Beishekeeva, 43, is a widow. She has two daughters and a son. The older daughter and the son are at school and the younger daughter is not yet school age. Sveta hopes to obtain this loan because she needs money to cover the family’s expenses.

Loan To: Obidohon Juraeva’s Group
Location: Aravan, Kyrgyzstan
Activity: Cattle
Loan Use: to purchase a cow

When a person works every day, he gains very valuable traits. First, he becomes patient and prudent. Sweat spilled and effort expended imparts thrift and respect for work as a whole. For this reason, even during times of unemployment and economic decline, the heroes of our story once again show that hardworking people always find work.

Obidohon Juraeva is the leader of this group. She is sixty years old, and after her husband’s death she was left with two children. Fortunately, her children have grown up, married, and now there are even grandsons to help Obidohon with her business. Obidohon works raising cattle and cultivating cotton. Her elder son is thirty-nine, and her younger son is thirty. Both of her sons have left to work in the Russian Federation. However, they left only when they were convinced that the grandsons could look after their grandmother and take care of the household. Obidohon has been working in animal husbandry for twenty-five years. Earlier, Obidohon only grew cotton. However, through Obidohon’s diligence and hard work, she produced enough cotton to allow her to buy livestock and begin to raise cattle. She has managed to marry off her sons and is already thinking about celebrating the weddings of her grandsons. Obidohon is asking for a loan to buy a cow.

Simon Turner

Article originally published on Marquette Turner Luxury Homes

Our Latest KIVA Microfinance Loans: Kyrgyzstan, Philippines and Rwanda

Situated on Viti Levu’s (main island) most northern point and a short walk to Wananavu Beach resort, where you have access to an excellent restaurant and marina. The property is offered for sale for $1.95 million (USD).

To launch the property website CLICK HERE or on the image below:

Traditional Chinese: 繁體中文 Download 下載
Simplified Chinese: 简体中文 Download 下载
French: Français Download Télécharger
Indonesian: Indonesia Download Unduh
Japanese: 日本語 Download ダウンロードする
Russian: Русский Download Загрузка
Spanish: Español Download Descargar

CONTACT

Michael Marquette on +61 433 170 170

Christine Watson on +61 414 352 680

Article originally published on Marquette Turner Luxury Homes

4 Acres of Tropical Paradise in Viti Levu, Fiji

Stainless steel & glass panels wrap around the entire home into the interior with gorgeous fossilized limestone tiles & 22 foot cathedral skylight ceilings.

The backyard is truly special, with a 60 foot x 12 foot pool surrounded by a large grassy yard, a pool side office with full bath and brand new sauna, and stairs down to a 50 foot helipad composed of a thick grassy lawn that is also the perfect driving range. 25+ car parking, separate guest house, dog run and room to put a tennis court or stables.

This property has also been featured in numerous television and motion picture films and is offered at $9.95 million USD.

To launch The Henman House website CLICK HERE or on the image below:

CONTACT

Michael Marquette on +61 433 170 170

Christine Watson on +61 414 352 680

Join our Fan Page

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Article originally published on Marquette Turner Luxury Homes

The Henman House Malibu Estate with Ocean and Mountain Views

The estate is a 10225 square foot architectural masterpiece featuring a symphony of glass and stainless steel. Inspiring vistas of the mountains and sea are accompanied by the soothing melody of a fresh mountain stream that runs alongside the residence. It is offered for sale, fully-furnished, at $5.5 million USD.

To launch the 21 Fulham Road website CLICK HERE or on the image below:

CONTACT

Michael Marquette on +61 433 170 170

Christine Watson on +61 414 352 680

Join our Fan Page

[contact-form]

Article originally published on Marquette Turner Luxury Homes

Camps Bay Estate For Sale in Cape Town, South Africa

Bert House is presently trading as a Country House Hotel with 17 bedrooms, all with en suite bathrooms, and could be acquired either as a going concern or a private home. It is offered for sale at €4,800,000.

To launch the Bert House website CLICK HERE or on the image below:

CONTACT

Michael Marquette on +61 433 170 170

Christine Watson on +61 414 352 680

Join our Fan Page

[contact-form]

Article originally published on Marquette Turner Luxury Homes

Grand Country Manor For Sale in County Kildare, Ireland

Anyone that thinks that their house will sell simply because “it’s green” will be disappointed, but greenness is a valuable attribute that may tip the balance when selling.

Here are our top five recommendations to “green-up” your property

1. First Impressions: Even before a potential buyer enters the house, what’s known as the “curb appeal” of a property can make or break a sale. A neat and tidy garden is desirable at any time, but it certainly helps assert a property’s “greenness” from the outset. Wonderful green lawns look wonderful, but just be aware that they often require excessive resources to maintain (unless of course you are fortunate to have access to bore water, in which case you should make sure this is clearly displayed). Think about using native grasses, shrubs and vines that are easy to maintain and don’t require excessive chemicals or water to keep looking great. Composting bins, rainwater tanks etc are also positive assets.

2. Highlight The Green Attributes: Don’t be afraid to spell out the green features of your property. Provide a list (itself made from recycled/sustainable material, such as paper or bamboo) which could mention such assets as energy-ratings, energy-efficient appliances, recycled materials (such as flooring), solar panels and non-toxic decorating materials (eg. paint). You may also want to include as a package the official leaflets of products from the supplier outlining their sustainable-attributes.

3. What’s Inside: Many buyers like to look inside cupboards and wardrobes, so whilst some property owner’s often feel this to be a somewhat invasion of privacy it can be turned into an advantage. Make sure what’s seen inside those cupboards are green and organic products, as this will speak volumes when combined with the other attributes of the property.

4. Clean is Green: A strange or pungent smell is never welcome, but it can especially dispel notions of being environmentally friendly. Make sure that the property smells fresh and clean, and do so with natural products, odor free or as neutral as possible rather than ones that are clearly chemical.

5. Environmental Accreditation: There are an increasing number of official bodies that will conduct an environmental audit of your property. Research online to find the best organization for you.

Simon Turner

Article originally published on Marquette Turner Luxury Homes

Highlight the Green Credentials of Your Property When Selling

Such descriptions are commonly made in reference for Ms Monroe, who died at the age of 36 on 5 August 1962. Home owner and mortgagee are perhaps less common terms

Now, almost 50 years after the death of Norma Jeane Baker, the one and only home that she ever owned is for sale.

A traditional Spanish-style colonial house located on a secluded cul-de-sac in the Los Angeles suburb of Brentwood, it was built in 1929 and was where the actress was found dead after overdosing on pills.

The living area is only 2600 square feet, although the lot is a far-better proportioned 23200 square foot, and includes a small pool and citrus groves.

Monroe paid just $90,000 USD for the house, and her monthly mortgage repayments were a tiny $320 USD per month. Even now, the house price seems exceptionally reasonable for both the location and its legend: $3.595 million USD.

Speaking of legends, a plaque by the front door states “Cursum Perficio,” Latin for “My Journey Ends Here.”

Incidentally, OJ Simpson was also an owner of the property.  Hopefully the new owner will have a rather more pleasurable life.

Simon Turner

Article originally published on Marquette Turner Luxury Homes

The One and Only House Marilyn Monroe Owned is for Sale